3 ms·
I'm sorry, what? Do you have any idea whatsoever you're talking about? Why would cash, with a nominal value of x, be worth more in in a year than cash with a no
by WheatMillington 3y ago
I'm sorry, what? Do you have any idea whatsoever you're talking about? Why would cash, with a nominal value of x, be worth more in in a year than cash with a nominal value of x plus some interest? Inflation aside, as this affects the value of your holdings in any case, in what universe are you better off doing nothing than earning a return?
- dragontamer 3y agoOn this point, the other guy was correct. Cash today is worth 5.25% from a money market fund (aka: the overnight lending rate). 10Y Bonds are only 4.5% or something. So "cash" (where "cash" means a money market fund, which is a generally accepted definition of "cash") is beating the 10Y and 30Y at the moment.
- Rury 3y agoIt can, it just depends. Take these hypothetical scenarios for example: Scenario 1: Buy 10Y today, @4.5% interest. Scenario 2: Hold that money as cash for 5 years, and then use it to buy 5Y when it's yielding 17% interest. Scenario 2 will yield a greater ROI after the 10 years. Obviously, there's no way of knowing exactly what the future will hold (many other scenarios are also possible). It just all depends.
- xyzzy123 3y agoPerhaps the misconception is the idea that you could buy 10Y now and then sell them later for the same value if a better rate comes along, i.e, mistaking 10Y bonds for "cash" and not realising they can drop in value.