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Inflation is "progressive" in this sense, however everyone wealthy would hold mostly assets, not cash.
by kzrdude 5y ago
Inflation is "progressive" in this sense, however everyone wealthy would hold mostly assets, not cash.
- imtringued 5y agoThey still hold a decent amount of cash as a percentage of their portfolio. 10% of a million dollar portfolio is still $100k which is more than the average joe has. He would use that money to buy a house instead of letting it sit around. Yes, bigger down payments suck but that is mostly a zoning/housing supply issue.
- sokoloff 5y agoI’d guess that many (perhaps most) wealthy households hold far more dollar-denominated debt in their real-estate and business interests than they do cash.
- nradov 5y agoIt's very rare for wealthy people to hold 10% of their assets in cash (or even cash equivalents). When they purchase real estate they usually take out loans secured by their other assets.