From Investing.com: 2024-05-10 06:24:00

Investors have a variety of investment vehicles to choose from, each with their own benefits and drawbacks. While some may offer high returns, others provide downside protection. However, no investment can offer all three components of safety, liquidity, and return simultaneously. Cash remains the only asset class that provides both safety and liquidity, sacrificing return. It is crucial to focus on liquidity when managing a portfolio, as it allows for quick adjustments to protect capital in times of market volatility. Holding cash can serve as a hedge against loss and provide stability during uncertain times, despite the pressure to remain fully invested.



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