The insidious risk in holding on to cash
Many investors say they do so ‘in case’ stocks tumble, but focusing on portfolio parts versus the whole is a dangerous mental error
[SINGAPORE] Cash is king – or is it? With interest rates still well above pre-2022’s zilch and pundits touting the Singapore dollar’s “safe haven features”, many are boosting cash holdings. But when does enough become too much?
Many investors carry high cash allocations because it feels safe – there is no short-term volatility. But an insidious risk lurks: Cash hampers long-term returns, risking a brutal, underfunded retirement or aged poverty.
Few investors fully consider this, but you should. Here’s how and why to right-size your coffers.
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