The “Should I go to all cash” question has raised its head again.

This past February was the first time in 36 years in business I went to all cash for a couple of clients. The pandemic had just started and two clients insisted I sell all of their holdings – I agreed after much discussion. Two weeks later they wanted to know my strategy for getting back in the market. I used the time-tested dollar-cost-averaging method to reinvest. Once again, with a heated election just a few months away, the question has come up again from a client. I repeated that I am not a fan of going to all cash, they have fundamentally sound investments, and we need to talk. One solution may be to take all of their investments back to their original cost. This will do two things – take gains off the table and reallocate them, and keep their fundamentally sound investments on the books. This may be a win- win strategy for those who insist on going to cash.


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