Is Cash Still Trash?
In 2020, billionaire and founder of the world’s largest hedge fund Ray Dalio claimed that “cash is trash.”
As central banks all over the world started raise interest rates in 2022, Ray Dalio has since reversed his stand to “Cash is now good (and not trash).”
And Dalio is not alone in his revised sentiment. Through casual conversations with other wealth managers, many have highlighted that investors are unwilling to leave the safety of cash, staying out of markets. This is also evidenced by the fact that there is more than US$6 trillion sitting in money market funds now.
However, sitting in cash and earning 5% per year has been costly for investors.
Global stocks all over the world are moving up as seen by the advancing global advance-decline line of 73 country indices above. We also see this confirmation anecdotally, as of March 2024:
S&P 500 hit a record high
NASDAQ hit a record high
STOXX 600 (Europe) hits record high
Small caps 52-week High
Gold Record High
Nikkei 225 (Japan) hits record high
From January 2023 — February 2024, global stocks have returned in excess of +28%.
Suddenly, sitting in cash and earning 5% per year doesn’t seem so attractive.
If you are nervous about markets and worried about investing, come experience the GYC difference and see how we can help grow your capital.
Most of us would trust an accomplished physician to manage our health. After all, physicians have specialised training, real-world experience and access to tools outside the reach of the general public. Most importantly, they took an oath to prioritize the patient’s health over their own interests.
In the same fashion, GYC espouses the same expertise in markets as good physicians do with health care. In addition, we adapt insights from financial science to develop a financial plan that is built upon a rigorously tested investment philosophy.
Click here to schedule an exploratory chat with us as we discuss how we can work hand in hand with you to accomplish each of your unique goals.