Asset Allocation 

How much cash should you hold?

How much cash should you hold?

We frequently encourage people to stay invested where they can because timing the market is notoriously difficult and, generally, your returns will be higher if you stay invested over the long term. But it is still important to have a proportion of your portfolio in cash, both to meet a need for emergency funds and to provide you with diversification and liquidity. With classic safe-haven assets now looking expensive, the question of how much cash to hold has grown especially urgent.

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