FYI: There are good and bad reasons to hold cash in your portfolio, but it’s important to remember cash is not risk-free.
Americans like cash. A lot. There is $2.7 trillion in money market funds alone, plus another $9.1 trillion in bank deposits, like checking accounts and certificate of deposits (CDs) (source: Investment Company Institute (ICI) and Federal Reserve (Fed), as of 10/16/2017).
Americans have about 58% of their investable assets in cash or cash equivalents, based on our investor survey. They do so for a variety of reasons, and some of them make sense, like monthly expenses, emergencies and upcoming events. But when 11% of those surveyed say they “just like to have it there,” the comfort associated with cash seems out of place.
Regards,
Ted
https://www.blackrockblog.com/2017/11/13/put-cash-work/?curator=thereformedbroker&utm_source=thereformedbroker
