Should You Hold Cash Instead Of Bonds Right Now? (EP.109)
The Long Term Investor · Peter Lazaroff
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Show Notes
The primary purpose of bonds is to reduce the overall volatility of the portfolio, but as we saw in 2022, that doesn't mean they can't lose money.
In fact, 2022 was the worst year for bonds in US history. And now that we're in a new period of higher interest rates on money market funds, CDs, and short-term Treasury bills, I've noticed an increasing number of people wondering whether they should hold cash instead of bonds.
Listen now and learn:
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How reinvestment risk impacts yield
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Why investment goals drive your choice of cash vs bonds
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Where diversification can help boost yield
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