How many are holding cash right now?

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Yesterdaysnews
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How many are holding cash right now?

Post by Yesterdaysnews »

Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
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Toons
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Re: How many are holding cash right now?

Post by Toons »

I am holding .0125 of portfolio
in cash now
:happy
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jebmke
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Re: How many are holding cash right now?

Post by jebmke »

Only enough to pay next months bills and estimated tax payments in June, September and January
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delamer
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Re: How many are holding cash right now?

Post by delamer »

I always hold cash in my portfolio.

No more and no less than usual now.
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TheTimeLord
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Re: How many are holding cash right now?

Post by TheTimeLord »

If t-bills and I-bonds are cash then I am holding more than most in what I classify as my discretionary portfolio.
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sailaway
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Re: How many are holding cash right now?

Post by sailaway »

Need cash for down payment on a luxury purchase! First time using a MMF, actually.
alfaspider
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Re: How many are holding cash right now?

Post by alfaspider »

Holding the same amount of cash as I always do, about 6 months expenses.
strummer6969
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Re: How many are holding cash right now?

Post by strummer6969 »

I am. 70% stocks, 30% cash equivalents and bonds. I should probably be more aggressive but 70/30 lets me SWAN. Much of the 30% represents funds that I will need In the next 10 years. I could go to 80/20 if the price is right; otherwise I don't mind staying with what I have.
Last edited by strummer6969 on Thu Apr 27, 2023 8:13 pm, edited 1 time in total.
exodusNH
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Re: How many are holding cash right now?

Post by exodusNH »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
Do you mean holding more cash than one normally does, in the hopes to "buy the dip" or to prepare for bad times?

I have a year's worth of property taxes plus 12 months to cover my P&I and other recurring bills. The pittance of unemployment I would receive (NH's weekly maximum is $430) would cover the rest.
Johm221122
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Re: How many are holding cash right now?

Post by Johm221122 »

I am holding a lot more cash than I ever have but I went 100% stocks in my retirement accounts from 60% stocks and 40% bonds.
I'm recently single and I'm working as much as I can because I'm about 10 years from retirement and power saving. I'm saving way more than I ever have. I saved 30% of gross a few times but last year I hit 40% and I'm on track for 50% this year. I'm going to have sit down and figure out what exactly I want to do with my additional savings but for now I'm just parking it in short term CDs
livesoft
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Re: How many are holding cash right now?

Post by livesoft »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pmWhat’s it going to take to see all that MMF sideline cash enter the market any time soon??
I don't think anything will change anybody's mind. Those that like cash will hold cash through thick and thin. And those that like gold will hold gold through thick and thin.

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AerialWombat
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Re: How many are holding cash right now?

Post by AerialWombat »

My AA is 1/3 cash-equivalents, 1/3 equities, 1/3 real estate. HYSA and T-bills are the vast majority of my bond allocation; the rest is T-notes.

If cash is trash, then I’m a garbage man! :mrgreen:
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chassis
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Re: How many are holding cash right now?

Post by chassis »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
Lots of MMF cash is normal. Money always expands. It always will.

Nothing will move all MMF sideline cash into the market. Some MMF cash will always be on the sidelines.

Cash is a useful position in a portfolio and I normally hold a sizable allocation of it, regardless of the latest news.
backpacker61
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Re: How many are holding cash right now?

Post by backpacker61 »

delamer wrote: Thu Apr 27, 2023 7:48 pm I always hold cash in my portfolio.

No more and no less than usual now.
+1
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Minderbinder
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Re: How many are holding cash right now?

Post by Minderbinder »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm
What’s it going to take to see all that MMF sideline cash enter the market any time soon??
So if someone moves their "sideline cash" in, what do you expect the seller of the equity will do with the cash received? Wouldn't it be right back on the "sideline"?
pasadena
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Re: How many are holding cash right now?

Post by pasadena »

I only hold cash for my emergency fund (6 months of expenses) and monthly budget (this time of year it's about 3-4 months of expenses because I'm front-loading my Mega Backdoor Roth so I'm getting $150 paychecks, so I hoarded some cash from my ESPP and RSUs to live on until August). All of that is either in I-Bonds (about $22k) or HYSA - not enough to chase rates.

That said, a family member recently sold all of their investments in taxable to buy a house. That money (about $300k) is currently sitting in Vanguard's VUSXX. It'll be used soon(ish) for the downpayment and future improvements in the house.
smooth_rough
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Re: How many are holding cash right now?

Post by smooth_rough »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
Basically I stopped investing in bonds in 2022. Instead dumping money into VSMXX. Maybe go back to bonds after fed stops increasing rates?

I am considering IBML ETF for my fidelity brokerage account. Low fees and tax exempt.
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Wiggums
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Re: How many are holding cash right now?

Post by Wiggums »

Our extra cashflow has been going into the market for several years.
We definitely have less cash today and our accounts are trending higher.
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asset_chaos
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Re: How many are holding cash right now?

Post by asset_chaos »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.
How the Federal Reserve drained the financial system of deposits, says an article in the Economist.
Over the past year [deposits] in commercial banks have sunk by half a trillion dollars, a drop of nearly 3%. ... Where is the money going?

The answer starts with money-market funds ...
The article goes on to suggest how deposits are leaving banks, going to money market funds which then "park their cash at the Fed."
By 2022 [money market] funds had $1.7trn deposited overnight in the Fed’s reverse-repo facility, compared with a few billion a year earlier. ... For those lacking a banking licence, leaving money in the repo facility is a better bet than leaving it in a bank. Not only is the yield considerably higher, but there is simply no reason to worry about the Fed going bust.
So any anecdotes may not be reflecting that people are selling stocks and bonds to put more of their investment portfolios into cash, which might reenter the financial market at some time, rather the anecdotes may reflect a reshuffling of where existing cash is being kept.

Keep as much cash on hand as you need to meet spending and psychological comfort needs. Don't move in or out of cash because of market conditions.
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strummer6969
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Re: How many are holding cash right now?

Post by strummer6969 »

livesoft wrote: Thu Apr 27, 2023 8:19 pm
Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pmWhat’s it going to take to see all that MMF sideline cash enter the market any time soon??
I don't think anything will change anybody's mind. Those that like cash will hold cash through thick and thin. And those that like gold will hold gold through thick and thin.

[Unnecessary comment removed by admin LadyGeek. Discussions are about issues, not people.]
+1 OP shouldn't let someone else's AA influence what he should do with his. Everyone has different needs. OP should have an IPS that tells him what to do and stick with the plan. Mine says not to put money in stocks that I will need in the intermediate future (childrens' college funds, vehicles, home improvements, etc). Otherwise, the funds go into equities without hesitation, regardless of what I think will happen to the market, what the Fed will or won't do, whether there's a scary recession or bull market around the corner. Perhaps he should start a thread about his IPS because he's had quite a few market timing threads lately.
Last edited by strummer6969 on Fri Apr 28, 2023 9:44 am, edited 1 time in total.
rich126
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Re: How many are holding cash right now?

Post by rich126 »

I have a bunch of cash I've been buying treasuries with but that is due to a couple of reasons. We will be buying a house this year and also using that money to bridge us to social security.

I'm not opposed to timing the market a bit such as trimming a bit when things seem over heated or buying when things seem terrible but nothing extreme. Most of my life I've only held stocks and cash. Never saw a point in bonds. Still on the fence with bonds and don't own any funds, just the treasuries. I'm still planning out RMDs from my inherited account and transferring money to Roth since if I don't work again the next 5 years will be very low income and try to make use of that in tax planning.
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Gennaro Dillinger
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Re: How many are holding cash right now?

Post by Gennaro Dillinger »

I have about 3 months cash available. Very, very small part of the portfolio.
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ruralavalon
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Re: How many are holding cash right now?

Post by ruralavalon »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
00% of my portfolio is in money market funds, T bills or other cash-like devices.

My only cash is whatever happens to be in my checking account at the moment.
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Re: How many are holding cash right now?

Post by goodenyou »

I have short term needs (1-2 years), so I hold cash. I am about to start construction on a custom home. Most of the purchase price is in VMFXX, CDs and Treasuries. I need to stay liquid for construction draws.

So, yes, I hold cash.

What "cash" is has been the subject of a lot of debate around here for a long time.
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Re: How many are holding cash right now?

Post by stoptothink »

We're starting to save money for a future home upgrade so we have about 10x more cash than we normally do and are putting ~75% of our bi-monthly after-tax savings into VMFXX instead of VTSAX.

If we weren't saving for a large purchase down the road, we probably would still be holding a bit more cash than usual just because HYSA and money market rates are higher than we've seen in a while.
intendi
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Re: How many are holding cash right now?

Post by intendi »

For a brief period I had 20% short term reserves (in addition to 50% stock, 30% bond) and Fidelity labeled my asset allocation "balanced" - I liked the looks of that word.
howard71
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Re: How many are holding cash right now?

Post by howard71 »

I do the Golden Butterfly so I'm always 20% cash. And that's been a little easier to swallow of late.
Dave55
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Re: How many are holding cash right now?

Post by Dave55 »

Being retired I hold a few years of cash to pay bills.

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CookieDough
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Re: How many are holding cash right now?

Post by CookieDough »

I'm holding more cash than usual, but only because I expected a large purchase last year that didn't end up happening.

Possibly if the market had been strong last year and this year, I would have plowed that money back into my typical AA when it became clear that large purchase wouldn't materialize. So I guess I'm doing a little market timing by not doing that.

My plan is to spend the cash back down to my typical AA over the next year.
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Re: How many are holding cash right now?

Post by TomatoTomahto »

My wife gets lumpy salary through RSUs and bonuses. Generally, when a lump occurs, I quickly invest it into equity funds. This year, I put a good portion of it into a municipal bond fund and other similar funds, as the returns are not shabby.

Market timing? I don't care. We are still investing excess income and dividends into equities.
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Re: How many are holding cash right now?

Post by secondopinion »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
Not me. I actually am holding less cash now.
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stocknoob4111
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Re: How many are holding cash right now?

Post by stocknoob4111 »

Holding 2 years of cash right now and will be at 3+ years when I retire mid next year... this allows me to defer withdrawals until 2025 and then keep my swr below 2% through 2030. I am hoping for a market recovery by 2030.
MrCheapo
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Re: How many are holding cash right now?

Post by MrCheapo »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
I'm holding about 33% of stock investments in cash
rockstar
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Re: How many are holding cash right now?

Post by rockstar »

I have half of my bond portfolio in 3 month t bills.
NiceUnparticularMan
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Re: How many are holding cash right now?

Post by NiceUnparticularMan »

During our recent annual rebalancing I moved a significant allocation out of a stable value fund and into a market/intermediate TIPS fund. It wasn't entirely unplanned to start ramping up TIPS, but I decided to accelerate the program due to recent real rate dynamics (which I know sounds like market timing but stable value funds are not marketed assets and so the normal anti-market-timing logic doesn't necessarily apply to them).

Anyway, that is the opposite of what you are asking. The stable value fund obviously ran through the recent crash in TIPS prices relatively well, and now I am basically treating this as a TIPS buying opportunity, not holding onto that stable value fund or trying to swap it for money market.
EnjoyIt
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Re: How many are holding cash right now?

Post by EnjoyIt »

We have a rolling 3 month cash pile in our checking account. Once the 3 months of expenses get depleted, I refill said pile.

I also have $83 in my wallet and a few coins on the night stand.

My kids have piggy banks if that counts.
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Marseille07
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Re: How many are holding cash right now?

Post by Marseille07 »

stocknoob4111 wrote: Fri Apr 28, 2023 12:33 pm Holding 2 years of cash right now and will be at 3+ years when I retire mid next year... this allows me to defer withdrawals until 2025 and then keep my swr below 2% through 2030. I am hoping for a market recovery by 2030.
Help me understand how holding cash lowers your SWR? Drawing cash should count toward your WR% as you're still withdrawing something.
carminered2019
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Re: How many are holding cash right now?

Post by carminered2019 »

I-bonds, Treasury, CD, saving = cash. I hold 10 years.
adave
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Re: How many are holding cash right now?

Post by adave »

Bro…. Due to recent private investment liquidity event and general savings I’m sitting on $1.1M cash right now in Tbills.

Sitting on cash doesn’t bother me at all. Rushing into investing every last cent when 5% risk free is available makes no sense in my opinion.

Biggest mistake people make in investing is lack of patience in my humble opinion.
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Re: How many are holding cash right now?

Post by secondopinion »

adave wrote: Fri Apr 28, 2023 2:12 pm Bro…. Due to recent private investment liquidity event and general savings I’m sitting on $1.1M cash right now in Tbills.

Sitting on cash doesn’t bother me at all. Rushing into investing every last cent when 5% risk free is available makes no sense in my opinion.

Biggest mistake people make in investing is lack of patience in my humble opinion.
I would agree. However, since liquidity is not as large of a burden for me, it is easier to invest. But I will be honest that I hold a sizable amount of short-term fixed income, kind of in the middle ground of a total bond market holding and treasury bills.
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Re: How many are holding cash right now?

Post by dadjunk »

MM ------> 15.7%
CDs------> 12.2%
T-Bills----> 27.7%

81 years old and AA goal is 50/50. A touch high on cash equivalent but just transacted a sell.
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Re: How many are holding cash right now?

Post by jebmke »

adave wrote: Fri Apr 28, 2023 2:12 pm Bro…. Due to recent private investment liquidity event and general savings I’m sitting on $1.1M cash right now in Tbills.

Sitting on cash doesn’t bother me at all. Rushing into investing every last cent when 5% risk free is available makes no sense in my opinion.

Biggest mistake people make in investing is lack of patience in my humble opinion.
I agree with that. I've been investing for 40+ years so I don't look for short term returns. Hence, I hold no cash to speak of.
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YeahBuddy
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Re: How many are holding cash right now?

Post by YeahBuddy »

I only hold 6-9 month emergency cash in a checking account at the bank down the street.
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TheTimeLord
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Re: How many are holding cash right now?

Post by TheTimeLord »

Holding or HODLing?
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cbox
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Re: How many are holding cash right now?

Post by cbox »

Dave55 wrote: Fri Apr 28, 2023 11:35 am Being retired I hold a few years of cash to pay bills.

Dave
Same.
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cbox
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Re: How many are holding cash right now?

Post by cbox »

adave wrote: Fri Apr 28, 2023 2:12 pm Sitting on cash doesn’t bother me at all. Rushing into investing every last cent when 5% risk free is available makes no sense in my opinion.

Biggest mistake people make in investing is lack of patience in my humble opinion.
Agree.
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Re: How many are holding cash right now?

Post by investorpeter »

25% cash and ST T-bills right now
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Re: How many are holding cash right now?

Post by HotRod140 »

cbox wrote: Fri Apr 28, 2023 3:19 pm
adave wrote: Fri Apr 28, 2023 2:12 pm Sitting on cash doesn’t bother me at all. Rushing into investing every last cent when 5% risk free is available makes no sense in my opinion.

Biggest mistake people make in investing is lack of patience in my humble opinion.
Agree.

I agree also with that statement
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Re: How many are holding cash right now?

Post by secondopinion »

dadjunk wrote: Fri Apr 28, 2023 2:50 pm MM ------> 15.7%
CDs------> 12.2%
T-Bills----> 27.7%

81 years old and AA goal is 50/50. A touch high on cash equivalent but just transacted a sell.
If the CDs are longer than one year until maturity as the average, I would count that more as short-term fixed income.
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Re: How many are holding cash right now?

Post by H-Town »

Yesterdaysnews wrote: Thu Apr 27, 2023 7:40 pm Anecdotally, reports are saying there is a record amount of money on the sideline in MMF.

My portfolio is currently 16% in 5% T-bills currently.

Who is holding higher than normal cash right now?

What’s it going to take to see all that MMF sideline cash enter the market any time soon??
Are you asking for market timers sitting on dry power while the market keeps going up? Don't worry. That recession that the experts keep saying will come eventually. Maybe when S&P 500 double or something. Maybe not.
Time is the ultimate currency.
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