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by swendoog 3159 days ago
Possibly holding cash is useful for when you need to quickly capitalize on a drop in the market?
2 comments

One can do that with treasuries or T-bills which historically have earned a real return. In a crisis one often finds that treasuries are negatively correlated with equities which can be a boon.
T-bills are what Harry Browne means by "cash".
Bonds are better suited for that purpose, however it's still preferred to just hold stocks over the long term. Holding bonds provides stability at the expense of drag.