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Episode 110: In light of the many questions and comments I’ve received about taking a cash position, I’ll reiterate my thoughts on the risk management strategy of being in cash.
If you sat out of the stock market for an entire year because you felt the risk/reward strategy was not in your favor (I’m not suggesting that you do this), at current rates of inflation you’d lose about 2% of the purchasing power of your money. This week the S&P500 fluctuated 1.8% (peak-to-trough).
Generally, any week in the stock market will have as high as or higher of a loss risk than an entire year of inflation (at current rates).
Listen to tomorrow’s podcast for Part 2.
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Hosted by John Pugliano. The Wealthsteading Podcast teaches 10 wealth building principles to help investors build wealth and attain personal freedom.
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Copyright © 2015 Investable Wealth, LLC. All rights reserved. This podcast is for informational purposes only and is not intended to be a solicitation, offering advice or recommendation of any security. This podcast does not intend to provide investment, tax or legal advice. The content is strictly the observations and opinions of Investable Wealth, LLC. The information in this podcast is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. Investable Wealth, LLC is an investment advisory firm licensed in the State of Utah.