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SW Ontario | Currently, there is lots of cash like yours sitting on the sidelines waiting for a productive investment. A lot of smart money owned by both individuals and large companies is being hoarded. This is why money velocity is very low, and still no significant inflation in everyday goods and services is showing up. You won't hear this on the financial news channels. But patience is key here. In today's investment climate, you better be ready to pull the plug on anything invested in stocks, long term bonds, or real estate on 12 hours notice. I am not a day trader so wouldn't trust myself to lose 30-40% of my portfolio before even blinking. I could probably liquidate before losing another 30-40% in a crash situation. I believe an 80-90 percent correction in markets is a realistic scenario in the next two years. So I am like you and basically in wealth preservation mode. Short term bonds is the best place for cash because banks will also fail so anything parked in a savings account is at risk. If money velocity starts to increase, that will be the time to spend hoarded cash. | |
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Investing 2021
