Holding Cash – Eroding Real Wealth A La 1970s Style

Whether or not to hold cash has always been a topic of debate among active investors. Many value investors like to hold some cash (and then there is a debate on the amount based on when, rates etc.) but in bull markets it usually is a drag on performance. Of course, the argument to ditch cash could be a sign that markets are at a top.... Now, investors have been in a position where holding cash has placed them in a position of playing catch-up in the past. But where will the markets go in the future? In a January 11 slide presentation reviewed by ValueWalk, Societe Generale notes opportunities as interest rates are headed higher.