What proportion of your portfolio is cash at the moment? I’m feeling a bit nervous about all the irrational exuberance recently and have started to move some to cash this month. Interested to hear what everyone else is doing.
It’s funny, normally I’d agree but at the moment things just seem really bubbly - retail investors diving into wild speculative adventures, people investing in Bitcoin at all time highs, stock markets reaching all time highs during a pandemic and retail inflation remains stubbornly low, thus right now you don’t lose much by staying in cash.
Now perhaps we’re seeing massive asset inflation and that will continue, but if we start to see retail inflation and interest rates rising in response, I’m not sure what’s going to happen to stocks.
Cash is king without cash you cannot purchase any shares and have to sell your shares or other assets, to gain some, it will still be around for a very long time behind it’s brother and sister and cousin which are