Not exact matches
So it will
likely spend $ 163 billion — its
cash and money market holdings minus its debt —
and then keep the rest in U.S.
bonds.
While she expected that
bond yields might not fall too much near term as managers would need to allocate some funds to
cash bonds, swaps
and futures would
likely remain under pressure.
Assets
likely to be held by private investors include:
cash in bank deposits, securities (such as shares issued by private companies,
and government or corporate
bonds), property, insurance policies, foreign currencies, cars, art
and antiques.
In addition, SMART Saver women have less of their assets in
cash (56 %) than other Canadian women (66 %),
and are far more
likely to have portfolio exposures to equities,
bonds and investment properties.
As a result of the
likely move into negative real returns on
cash, more
cash savers will move into UK government
bonds (gilts), more gilt owners will swap them for corporate
bonds, some more will move into equities,
and a sliver of risk - takers will use cheaper financing to start businesses or take out loans to build property.
An alternative,
and perhaps more
likely, interpretation is that the market expects that the target
cash rate will remain below its average over recent years for some time,
and this expectation is reflected in
bond yields.
Therefore,
bonds and cash as a percentage of TOTAL NET WORTH is
likely even smaller given equity
and fixed income investments aren't usually 100 % of one's net worth.
So if you had taken the advice of the
bond doomsayers, say, five years ago
and fled to
cash to wait things out until
bond yields ticked up, you would have
likely earned well below 1 % annually on your money vs. an annualized 4 % or so in a broadly diversified investment - grade intermediate - term
bond fund.
In addition, RSPs are suitable vehicles for investments on which you are
likely to get fully taxed regardless, so they make sense as a place to put your «
cash» portfolio - GICs
and bonds.
As you get closer to needing your money, you will
likely want to decrease your exposure to stocks
and other risky assets
and increase your exposure to less risky assets such as
bonds and cash.
For example, if you are
likely to need the bulk of your TD
and Bell shares in the short to medium term, perhaps they should be invested more conservatively in
bonds, GICs or near -
cash investments.
With a balance sheet at the time of the announcement comprised of $ 2.46 Trillion in Treasuries
and $ 1.78 trillion in MBS
and agency debt, it will be a long time before these holdings are pared down to what is expected to be a final balance of perhaps around $ 2 trillion or so,
and likely one solely comprised of
cash reserves
and Treasury
bonds.
With your paycheck about to disappear, replaced by the need to sell securities on a regular basis to generate spending money, you'll
likely want to boost your holdings of
bonds and cash investments.
Longer term:
Cash is almost guaranteed to lose to inflation,
and you will
likely pay a high opportunity cost by avoiding
bonds.
But with the arrival of retirement, you'll have no more future
cash to be invested —
and you will
likely want to compensate by allocating more of your portfolio to
bonds, money market funds
and similar investments.
Both stocks
and bonds generally outperform
cash, so it makes sense that the longer you take to move
cash into either of those assets or a combination of them, the lower your return is
likely to be in most cases.
A basic asset allocation would
likely include at least stocks,
bonds (or mutual funds of stocks
and bonds),
and cash or
cash alternatives.
Variable Universal Life
cash values are
likely to fluctuate due to their investment in stock
and / or
bond markets.