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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 ba
by 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 agoI 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 agoYou hold cash for short or mid term optionality. If you want long term stable store of value buy gold or treasury bills
- ClumsyPilot 5y agoMost people who want to secure family wealth and have the option of trickle incompe buy real estate
- wildrhythms 5y ago2008 is calling and wants to talk to you.
- ClumsyPilot 5y agoI agree, we as a society have learnt nothing
- nly 5y ago2008 property crash was mostly a US phenomenon
- razius 5y ago