Why Cash Can Be a Double-Edged Sword — The Barbell Portfolio Strategy
00:00:00.000 | I've always had something of a barbell portfolio.
00:00:03.240 | On the one hand, I take a lot of risk in equities over here, but then over here
00:00:06.500 | in my more liquid bucket is cash savings.
00:00:09.200 | And that's for any sort of rainy day fund or vacations or any other shorter
00:00:13.640 | intermediate term thing that we're planning for, I think cash can become
00:00:17.360 | a gateway drug to market timing.
00:00:19.520 | You really have to make a definition in your, in your head of your
00:00:22.200 | portfolio of this cash is part of my overall asset allocation, or it's my
00:00:26.760 | emergency fund, or it's my intermediate term savings or whatever it is, if you
00:00:30.640 | don't have these, these things bucketed out, if you're just kind of going up
00:00:34.280 | about this without a plan and say, yeah, cash rates are high, I'm going to put
00:00:37.200 | all my money there and the stock market takes off, then what do you do?
00:00:39.720 | You have to have a plan of attack with that, whether that's cash is ever going
00:00:43.440 | to be invested, or if it's not, I think you can't just get stuck in the middle
00:00:46.680 | where you're trying to guess when a good time to put it back in the market is.