In Defense of Cash

Most investors intuitively recognize the benefit of purchasing distressed assets “on-sale” when markets periodically correct, yet very few actually hold the cash required to take advantage of these fire-sale prices when significant market draw-downs inevitably occur. There are few better examples of this type of destructive behavior than the February 2020 stock market panic which found overconfident equity investors near-fully allocated to stocks just prior to the crash. With...