Managing Your Money 

Consider the risks before trying to mitigate volatility with cash

Consider the risks before trying to mitigate volatility with cash

Many investment professionals argue that ‘time in the market rather than timing the market’ is what reaps long-term rewards. As a result, they are reluctant to increase cash holdings in times of volatility. Other advisers take the view that, while cash won't lose you money, it also won’t make you any, so encourage clients to stay in the market at all times. But what if you are pretty certain that market conditions are going to be volatile? Is it really worth staying invested in asset classes that have a greater chance of loss?

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