[runarb]

> I have been sitting on cash since end of last year,

How do you feel about the recent spick in inflation? I have also been sitting on some cash for a year, and its buying power has definitely fallen. I find it now hard to see if prices will fall or wags will go up, so the cash I have will be of less relative worth.

[qqqwerty]

Imagine if you had invested that cash in Rivian last year. You would be down about 80%. Compared to the ~8% inflation we have seen in the last year, suddenly holding cash seems like a pretty good deal.

The Fed is basically trying to control inflation by inducing a recession. Holding cash is generally ill advised during times of high inflation, but holding assets during a recession can be pretty painful as well. At least with cash, you can buy the dip if you are so inclined.

If you haven't already, take a look at I Bonds. Those are safe, and have returns tied to inflation. Also, it is probably a good idea to start thinking about how and when you might want to invest your cash. It already feels like there are some good deals out there. But if inflation persist and interest rates keep rising, I can only imagine things will get cheaper still.

[alexis2b]

Check TIPS (Treasury Inflation Linked Securities)[0] for a way to stay liquid but still get inflation protection.

[0] https://www.treasurydirect.gov/indiv/products/prod_tips_glan....

[mirceal]

yes, securities from the same people that brought you the inflation. what could possibly go wrong?