In all of the talk that goes on about asset allocation, I always feel like one asset class is often forgotten: “Cash”. The fact that it is a boring, extremely low return asset should not be enough to stop you. I think any individual, no matter how rich or poor should hold part of its assets in cash. Why?
-Capability to capture opportunities: When markets suffer major losses as has happened in 2001, 2008 and in many other instances, many investors panic.