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Why cash when inflation is coming?
by guelo 2y ago
Why cash when inflation is coming?
- randunel 2y agoYou need liquidity when recessions come. Less liquid assets go for lower than usual since cash is king during those times. But nobody can predict recessions.
- ghaff 2y agoCash often refers to Money Market funds and the interest they pay tends to track inflation. There are also ibonds but you can invest a fairly limited amount in them.
- lotsofpulp 2y agoMoney market funds haven’t tracked inflation for people living in higher prices areas for a long time. Maybe if you already owned your final house and didn’t need healthcare or education.
- ghaff 2y agoI was getting 5% until recently which isn’t that far off of where inflation hit. Of course, as you say, some things are higher although a normal age retired person isn’t that exposed to them.
- muzani 2y agoCash can bleed slower than the others, especially if there's stagflation. Liquidity is nice too during uncertain times. Also nearly 100% tariffs on one of the biggest trading partners is unlikely to hold for very long. There's probably a lot of options because of that.