Importance of Investment Liquidity

Discussion Surrounding Stocks vs. Cash-Ready Deposits

Some folks say “Silver or Gold Bullion” — maybe even Real Estate, are the safest long-term havens to place your money in; but if you look at the past few years, that’s far from the truth. In fact, the only true safety net in these uncertain economic times (which started in 2020) is various forms of cash-type investments.

I’d like to share the top three forms of cash-like investments, and how its true that many investors are not only placing bets in them, but doubling down. Three easy to access [and in my opinion] excellent options available for investors wanting to avoid stock - real estate risk are: Money Market Funds, Certificates of Deposit, and Short-Term Treasury Debt.

All three are very safe alternatives to the equity markets (stock market), and during difficult financial times, each one has a tendency to equal or exceed stock market returns. These choices are reassuring places to park money while “war — recession — housing market” worries persist, or while stocks and bonds try to recover from 2022’s pummeling. The reason for this reassurance is primarily due to great uncertainty with the stock market that has resulted from policies in the current political administration, rumors of WWIII, and inflated interest rates (also pending recession fear).

With regards to Money Market Funds, I’m grouping high-yield savings accounts in the same category because of how both of these investments are so similar and sometimes…