“Bank of America Clients Hoard Cash at Highest Level in Two Decades”
Everyone has their own goals and situations - I don’t feel there is a right or a wrong frankly.
Me personally - I loved, and love cash. I wish I had enough money where I didn’t have to take risks, even educated risks.
I remember back in the 2009 crash - I had a new kid, and was terrified of losing my business which was the sole thing I knew how to do and make money from. I had kept tons of cash, despite people telling me I’m losing money and that cash helped me protect the mothership while some competitors - people with more money than me - went under and I inherited some of their business operations.
Yes, I’ve missed these fed induced market rallies I admit, and certainly I wish id’ have participated a bit more.
Fast forward to today - I’m into paper assets now. But still ‘too much’ cash and I keep hearing how I’m losing money and yes, I get that inflation is high. I get that the $3.64 Quarter Pounder combo I used to buy while skipping school in 1993 - -is now $10.69. But for a year or two?
Now, being retired - yes purchase power can erode but many of my ‘big categories’ be it property taxes or cars - - nope, they aren’t going up 8% or even close.
I just like having it there. And I barely know anything - let alone how to ‘time’ a market. But I feel better at S/P 4000, vs 4600. And I continue to slowly deploy some cash now - -but won’t do a seriously deployment till 3700 if it ever arrives. I guess I’m more scared of losing - versus missing out on gains. I was never a home run hitter in business. Consistent singles and doubles was my thing.
I got on base.
I understand and relate to those who might be “hoarding” cash and I feel that as long as it’s in tune with their goals and needs, and they are conscious that some purchase power is eroding - - and they make adjustments based on that - Ross Perot used to say -it’s hard going broke with money in the bank.