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Advisers walk fine line when managing client cash
Staying ahead of inflation in a low-yield environment can mean taking on more risk with emergency cash positions. The shortest-term certificates of deposit are yielding less than 65 basis points.
May 17, 2021 2 MINS
While most financial advisers continue to recommend their clients hold enough cash or liquid cash equivalent to cover between three- and six-months’ worth of living expenses in case of an emergency, the crushing reality of historic-low yields is leading to some shifting priorities when balancing safety and yield.
“I get the question about earning yield on cash at least once a week from clients,” said Paul Schatz, president of Heritage Capital. “There are plenty of solutions, but solutions don’t come with the same low level of risk as bank savings accounts.”
May 11, 2021
Inflation fears have been top-of-mind for investors, but those fears could be quelled with the proper strategy. One idea is adding fixed income portfolio protection with the
“The single most important question in investing this year is whether the rampant inflation of the moment is temporary, as the Federal Reserve believes, or marks a historic shift,” a Wall Street Journal report noted.
GSY can be added to a portfolio and kept for the duration of the period of inflation thanks to an ETF’s dynamic trading ability. With the ease of getting in and out of positions like a share of stock, GSY can be held for as long as the investor wishes without wondering whether to hold it until a redemption date like a traditional bond.
Companies Reporting After The Bell
• VIZIO Holding (NYSE:VZIO) is estimated to report quarterly loss at $0.10 per share on revenue of $484.07 million.
• Talis Biomedical (NASDAQ:TLIS) is likely to report quarterly loss at $10.80 per share on revenue of $230.00 thousand.
• FAT Brands (NASDAQ:FAT) is estimated to report quarterly loss at $0.06 per share on revenue of $6.75 million.
• Xenon Pharmaceuticals (NASDAQ:XENE) is likely to report quarterly loss at $0.40 per share on revenue of $5.15 million.
• Sonim Technologies (NASDAQ:SONM) is expected to report quarterly loss at $0.10 per share on revenue of $12.97 million.
• Invesco National AMT-Free Municipal Bond ETFo (NYSE:PZA) is likely to report earnings for its first quarter.