As an asset class, cash generally elicits one of two responses from investors: “cash is king” or “cash is trash.” Most of your clients probably are in one camp or the other, while some may be conflicted.
On the one hand, they may see the positive benefits of holding onto cash — shielding against the unexpected or having more flexibility to invest as opportunities arise. In light of recent market volatility, cash may feel like a safer bet.
On the other hand, they may harbor a genuine fear of missing out on investment returns and resulting portfolio growth. After all, if markets are down, they may go back up, right?Read More