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Today's Chart of the Day, from BlackRock, illustrates the potential downside of staying in cash for too long. It highlights the excess returns of a 60% stock/40% bond portfolio compared to cash since 1926. The top bars (red) show these returns; for instance, a 10-year holding period yields returns 100% higher than cash.
The black boxes below show the percentage of time cash underperforms; for 10 years, that is 91% of the time.
This highlights the old adage, "It’s not about timing the market, but time in the market." If you have funds that you will not need for more than 10+ years, historically, stocks have been your best bet.
Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.
Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.
