Cash Is Trash Again

"[You’re] going to feel pretty stupid if you’re holding cash", Ray Dalio famously said, in January of 2018, just days before the implosion of the VIX ETP complex catalyzed the first of that year's two equity corrections. By the end of 2018, cash was the best performing asset class on the planet, returning nearly 2%. Virtually everything else (save Treasurys, which eked out a ~1% gain) suffered losses amid the latter stages of the Fed's tightening campaign (figure below). Fast forward two y

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2 thoughts on “Cash Is Trash Again

  1. It depends on your perspective. If you think other assets are over-valued and due for a correction (or worse), then losing a couple percent real yield doesn’t sound so bad.

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