There is a place for cash in an investment portfolio, but keep in mind the historical growth of the stock market!
Walton Financial Group in Barrie, Ontario will give you the best advice possible about the place for cash in your investment portfolio
Cash is appealing when stocks and bonds continue to be buffeted by inflation, weaker corporate profits, U.S. regional-bank failures, debt-ceiling standoffs and a whole lot more. But stay parked in cash for too long and there may be a risk of losing out on bigger gains elsewhere.
This risk may be hard to see right now, admittedly. Rising interest rates have raised the returns on cash-like investments, where your money might be locked in for short periods, at a time when economic clouds continue to hang over the stock market and bond prices remain in the dumps.
Add continuing fears of a recession to the mix and it’s little wonder investors are hoarding cash.But this might not be a healthy trend for investors with longer-term time horizons.
But investors with time horizons that extend beyond a couple of years might want to check the impulse to hold on to what worked last year and explore other opportunities
Regardless of what works well this year, though, long-term historical returns stand as a clear warning to investors still clinging to cash: Over the past 10 years, the S&P 500 has delivered a total return of about 12 per cent a year, on average.
So what is the answer? Your best approach is to establish a long term relationship with a trusted financial advisor at Walton Financial Group who knows you and your investment horizon.
The team at Walton Financial Group in Barrie, Ontario will meet with you, do a portfolio review and give you the best advice pertaining to the mix of cash, stocks, bonds and investment funds suited to your goals.
