Cash is in style

Investment Analysis Clubs Macro Economic Trends and Risks
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https://finance.yahoo.com/news/bofa-clients-hoard-cash-2001-…

“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.

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I like to have a decent amount of cash in hand all the time. Small denominations.

The Captain

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Cash is in style for me also. All assets are in bubbles that may burst when the Fed raises interest rates.

I’m using Treasury Direct to buy short-term T-bills to get a little interest. They are cash-like and will mature as interest rates rise.

Wendy

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Hi Wendy thanks for chiming in. Yes, I also did the I-BOND thing. My forecast assumes making an average of 1.6% average over the next 4 years… so the current I-bond helps me reach or who knows, even exceed that goal. Deep down inside - I sometimes wonder how the USA can continue its full faith and credit - - and I consider this a very tiny risk. But then again I figure if things get that bad we’ll all have bigger worries.

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I like to have a decent amount of cash in hand all the time. Small denominations.

The Captain

Hee Hee.

Since 2008 I’ve had small amounts of solid goal and silver stashed away.

Every once in awhile I fondle it and pretend I’m a bigshot, or maybe feel a sense of security.

In reality, I have zilch idea what good it would do me ever.

Wish I knew farming, gardening or marksmanship. But I don’t. I’m a lover not a fighter. But then again after decades of eating poorly I’m not a lover either.

Dammit this is depressing me now.

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“Bank of America Clients Hoard Cash at Highest Level in Two Decades”

I’ve seen claims like this every so often and in the past they’ve never proven true…

… it has sometimes been the case that some banks were hoarding their clients’ cash.

But if YOU are hoarding cash, how is any bank going to know? The stuff is under your mattress.

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