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Commentary
Holding cash may mean risky business
Investors with too much cash could deplete their portfolios in times of negative real yields
The renewed decline in yields and cash rates across global markets in recent weeks leaves investors in a conundrum.
The safest assets, like cash and government bonds, now guarantee real (or inflation adjusted) wealth destruction if held to maturity. Non-dollar bonds in developed markets even have a negative nominal yield, on average.
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