If youโre paying attention to whatโs going on in Afghanistan and here at home with COVID you have reasons for concern. Let me remind you, my Rage Gauge right now is at full tilt, high RISK. Clearly those in power seek a different future than what you and I may have in mind for our families and loved ones. A future where they decide how you live your life. A great RESET is in the works. Pay attention. Now, is when you prepare accordingly not when more danger arrives at your doorstep. Your Survival Guy talks with investors like you every single day. Donโt let inertia ruin your future when you know in your gut itโs time for a change.
September RAGE Gauge: Your Survival Guyโs Cash ADVICE
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OK, my September Rage Gauge is in, and itโs not pretty. Risk perception continues to be at an all-time high. I get it. And as an investor, you canโt afford to keep your head in the sand. This may be a perfect time to make some adjustments to an often overlooked area of your portfolio. Iโm talking about your CASH. As I wrote to you yesterday, I think about cash in three ways:
You have your emergency stash on hand that you hope to never use.
You haveย cashย in yourย investmentย portfolioย as part of your strategy.ย To buy stocksย when others are selling,ย for example.
You have a pile thatโs getting bigger and bigger at your bank. You know, the cash you used to use to buy CDs. Remember them? Well, thatโs your sleep well at night cash, and quite franklyโitโs gotten lazy. Chances are you have too much of that cash sitting around doing nothing.
Right now, I want to talk about your LAZY cash that typically goes into CDs or T-Bills, which, by the way, yield 0.06%. How much cash is lying around in your bank account doing nothing? Probably too much. Iโm guessing some of that money could be working for you.
Letโs say you have $100k more than usual in cash, and your back of a napkin portfolio allocation targets 50/50 between stocks and bonds. Donโt you think some of that $100k in cash could be generating above-average yields in dividend-paying stocks? Itโs worth thinking about.
Action Line: Take a look at the chart below. My interest isnโt so much about the price, which has been outstanding, itโs about the earnings. As in earning dividends. Get that LAZY cash off the couch and give it something to do. Iโd love to talk with you.
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