When it comes to asset allocation and portfolio construction, there are three basic asset classes for investors – stocks, bonds and cash.
The appeal of holding equities and bonds is well known. However, since the end of the recession and the low interest rate environment, cash hasn’t exactly gotten much love from investors. After all, inflation returns for holding cash have been negative over the last decade or so.
However, these days, investors might want to consider the forgotten asset class once again.
Rising yields and growing volatility make cash a very suited asset class for these times. For investors, these days cash may truly be king. And the options for holding cash have only grown.
Explore here to know more about dividend investing strategies.