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Possibly holding cash is useful for when you need to quickly capitalize on a drop in the market?
by swendoog 9y ago
Possibly holding cash is useful for when you need to quickly capitalize on a drop in the market?
- tanderson92 9y agoOne can do that with treasuries or T-bills which historically have earned a real return. In a crisis one often finds that treasuries are negatively correlated with equities which can be a boon.
- tome 9y agoT-bills are what Harry Browne means by "cash".
- brndnmtthws 9y agoBonds are better suited for that purpose, however it's still preferred to just hold stocks over the long term. Holding bonds provides stability at the expense of drag.