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Is cash still king?

Inflation will quietly but steadily erode purchasing power, reducing wealth significantly

    • Rather than letting cash sit idle, consider treating it as part of your overall portfolio strategy.
    • Rather than letting cash sit idle, consider treating it as part of your overall portfolio strategy. PHOTO ILLUTRATION: PIXABAY
    Published Sat, May 31, 2025 · 05:00 AM

    WE FEEL comfortable with cash. It shields you from volatility, helps you sleep at night, and gives you the flexibility to act. But in a world of persistent inflation and evolving investment opportunities, holding too much cash may quietly drag on long-term returns.

    Let’s explore here when cash makes sense, when it becomes a drag – and how different types of investors can put idle funds to better use, all while maintaining liquidity and managing risk.

    Cash provides a buffer against uncertainty – whether that’s funding near-term expenses without disturbing long-term investments or being ready to deploy capital quickly to invest during drawdowns.

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