In this age of Covid-19, you would think the market would be going down down down but the market is going up up up. Why? If you are asking yourself this question, which I also did, you should definitely be holding some cash. Cash as in cash you can invest when the market does go down.
Do I always hold cash? No. Sometimes I feel comfortable in the direction of the market. If I feel that we might be on the verge of an economic downturn, I might either invest in companies with a lot of cash or hold back a greater amount of cash.
Holding cash gives you the opportunity to invest at lower prices. That is the main benefit. It will also keep you from losing so much money but it will also keep you from making as much money as you could.
So this is the start of my blog. I guess we will see where I go from here.