7 ms·

> And you definitely don't hold cash. Holding cash has a lot of risk as well (Sorry, genuine questions) risk of what and compared to what?

epgui 5y ago
Risk of loss, theft or physical degradation. Then there’s the costs of holding cash, which are known to give you a negative yield due to inflation (nevermind bank fees or insurance costs, etc)
- ghaff 5y ago
  I assume cash was being used in the normal financial accounting sense of the word as opposed to dollar bills in the mattress. Yes, there's inflation negative yield. But especially in the low interest and inflation rate environment that has been the case until possibly recently, the difference between "cash" (i.e. default investment at a brokerage) and other very low-risk investments (e.g. high quality corporate bonds) has been pretty minimal.
- tmn 5y ago
  You hold cash for short or mid term optionality. If you want long term stable store of value buy gold or treasury bills
  - ClumsyPilot 5y ago
    Most people who want to secure family wealth and have the option of trickle incompe buy real estate
    - wildrhythms 5y ago
      2008 is calling and wants to talk to you.
      - ClumsyPilot 5y ago
        I agree, we as a society have learnt nothing
      - nly 5y ago
        2008 property crash was mostly a US phenomenon
        razius 5y ago
davchana 5y ago
One of the many, we indians experienced few years ago, where the prime minister simply announced on national tv that from tonight 8pm onwards two denominations (the highest ones at the time) are not valid anymore. I think he gave few/20 weeks to deposit old notes to banks. One of many, the housewives who saved money from day to day house expenses, had to come out clean to family that they are holding 1000s of currency in old now defunct notes.
- samarthr1 5y ago
  And so did a bunch of folks who held black money no?
  - davchana 5y ago
    I think the official figure is, more that 99% of old money was presented to banks for conversion; but this might spill into a political or controversial conversation, I will not be pursuing it because of lack of energy.

epgui 5y ago

Risk of loss, theft or physical degradation. Then there’s the costs of holding cash, which are known to give you a negative yield due to inflation (nevermind bank fees or insurance costs, etc)

ghaff 5y ago
I assume cash was being used in the normal financial accounting sense of the word as opposed to dollar bills in the mattress. Yes, there's inflation negative yield. But especially in the low interest and inflation rate environment that has been the case until possibly recently, the difference between "cash" (i.e. default investment at a brokerage) and other very low-risk investments (e.g. high quality corporate bonds) has been pretty minimal.
tmn 5y ago
You hold cash for short or mid term optionality. If you want long term stable store of value buy gold or treasury bills
- ClumsyPilot 5y ago
  Most people who want to secure family wealth and have the option of trickle incompe buy real estate
  - wildrhythms 5y ago
    2008 is calling and wants to talk to you.
    - ClumsyPilot 5y ago
      I agree, we as a society have learnt nothing
    - nly 5y ago
      2008 property crash was mostly a US phenomenon
      - razius 5y ago

davchana 5y ago

One of the many, we indians experienced few years ago, where the prime minister simply announced on national tv that from tonight 8pm onwards two denominations (the highest ones at the time) are not valid anymore. I think he gave few/20 weeks to deposit old notes to banks. One of many, the housewives who saved money from day to day house expenses, had to come out clean to family that they are holding 1000s of currency in old now defunct notes.

samarthr1 5y ago
And so did a bunch of folks who held black money no?
- davchana 5y ago
  I think the official figure is, more that 99% of old money was presented to banks for conversion; but this might spill into a political or controversial conversation, I will not be pursuing it because of lack of energy.