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Hi Do, Here are Todd’s latest fun picks to take your financial skills to the next level...
The self-serving financial industry has convinced everyone that cash is trash.
It's not.
Unfortunately, most retail investors believe owning cash is like holding a melting ice cube in your portfolio because inflation relentlessy destroys purchasing power.
That's mathematically correct in the long term, but it's the wrong way to think about the role of cash in your investment strategy.
I teach "asset agnosticism" in my Expectancy Wealth Planning course. That means no asset class is better (or worse) than any other, which includes cash.
Each asset class has unique characteristics. Your job as the wealth builder is to match the unique characteristics of each asset class to your personal goals and evolving market opportunity.
That last point - evolving market opportunity - is key.
Cash provides positive expectancy and a secure, temporary parking place during periods of unusual risk.
Cash also increases in value relative to risk assets during bear markets because it's the asset you exchange at fixed value for those declining value assets. Each dollar effectively buys more.
Additionally, cash provides optionality. Very important.
If your core belief structure disagrees with me, then today's resources are a must-read...
This article is long. If time is short or you want to skim, then manage it in thirds. The middle third explains how cash provides an unusually high expected return when measured from periods of historic overvaluation (like today). It's contrary analysis that has proven useful throughout my investment career and is congruent with how I teach expectancy investing. You get extra credit for reading the first third of the article - a well-researched, pure-quant analysis explaining today's historic market overvaluation in sobering terms. This brief article illustrates other positive cash attributes. I wish it also showed Warren Buffett's cash management strategies and how the world's greatest investor varies his cash position based on market valuation. That would have been informative, but we'll take what we can get when seeking resources for this generally misunderstood subject. It's worth the brief read just to get a few important basics. Actively managing cash against long-term investment positions is confusing because it doesn't match traditional investment advice. This sales letter introduces you to a service good enough for my own money that does all the heavy lifting for you. It provides you with a simple way to take back control of your portfolio, get off the market volatility roller-coaster, reduce risk, and increase your safe withdrawal rates - all at the same time. It's a great resource. I hope it helps you.
Onward and upward!
Todd Tresidder
Take the next step beyond traditional financial planning! This comprehensive solution gives your more knowledge about wealth strategy than your financial planner. No more contradictory advice. No more doubts. Nothing more is needed. Confusion is replaced with confident action and tangible results.
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