Why you should always hold some cash

Conventional wisdom dictates you should have all of your money invested all of the time. But keeping some cash back is often the wisest investment decision you can make. Phil Oakley explains why.

'Cash is trash' is a common phrase in the world of investing.

Many people will tell you that cash has no place at all in your portfolio. If you want to get rich then you've got to be invested in shares or property. You've got to be fully invested in these markets at all times to make it big.

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-2.3%-4.1%-2.3%
Source: Barclays Equity Gilt Study 2012

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.