Cash is King !

John Disney
6 min readFeb 11

Equities — Stocks are Dangerous

When you think of the word “Cash”, in this article I’d like for you to think of it not as paper money, but rather as a very safe electronic investment in an account. Some people say “Gold Bullion” or maybe Real Estate, are the safest long-term havens to invest 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 uncertain economic times (which started about 3 years ago) is various forms of cash-type investments. I’ll share with you my opinion on the “Big 3”, and how smart investors are not only placing bets in them but doubling down. Before we move on, there is a 4th category that is somewhat less convenient to access, but nonetheless should at least be mentioned. It is the I-Bonds and Series EE Bonds available through “TreasuryDirect.”

The 3 easiest to access and best options available for investors that are risk adverse, and prudent long-term thinkers are: Money Market Funds, Certificates of Deposit, and Short-Term Treasury Debt. All three are super safe alternatives to the equity markets (stock market), and over the past year each one has equaled or surpassed equity market returns. The reasons for this are several-fold, but primarily due to great uncertainty with high-office politicians, rumors of war, and interest rates (pending recession fears). These choices are reassuring places to park money while recession-depression worries persist, and as stocks and bonds try to recover from 2022’s pummeling.

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 intertwined. These types of investments would be considered the “shortest of terms” with regards to the other two that I indicated above. They can be invested in for a few days to several months …or even years. Currently averaging an Annual Percentage Yield of 3.75% to 4%, I place this investment as one that is extremely prudent and valuable if you have excess money that is not tied up in some of the other choices I’m about to discuss. Money Market (high yield) accounts normally utilize a combination of very short-term CDs, Corporate Debt, and T-Bills. Incidentally, money market funds/ high yield savings accounts have increased in pay-outs by almost 7 times over the past 16 months. That is about 700 percent for those of you that are analysts. Not too shabby of an investment for many of us that are sick of the stock market’s roller coaster ride.

John Disney

Investment Manager, “Social Media Influencer” & Christian Audience Entertainer: Search YouTube for @RedwoodCastle