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It’s Not Easy Being A Cash Investor

FYI: PIMCO's Jerome Schneider says even after the Fed raises rates, successful money market funds may not give the net yield.
Regards,
Ted
http://www.thinkadvisor.com/2015/09/18/its-not-easy-being-a-cash-investor?t=fixed-income&page_all=1

Comments

  • well, if it isn't easy being a cash investor, then maybe it would be easier being a cash borrower--- make like you're a corporation.

    image
    Party on, corporate dudes!
  • From what I have been reading and hearing ... The use of borrowed capital (leverage) by big money is a contributing factor to the higher than normal stock market valuations we have had and currently have. Over the past couple of months stock market prices have been in decline due to leverage in the markets is being reduced by big money.

    Seems to me, this party just might be winding down as the crowd seems to be thinning out. As a retail investor, I have been raising my cash position within my own asset allocation thus reducing the amounts of stocks and bonds held within my own portfolio.

    I have not sold out of the capital markets but I have made some changes that have rebalanced my asset allocation within its allowable ranges that puts cash towards it's upper range of about 25% while causing a reduction in the others.

    So, if I am making this rebalance move, perhaps others are too.
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