Financial Planning Persuasive Essay

With less than 5 days left until the referendum the polls are at an impasse on whether the United Kingdom should stay or go. As markets await the decision, volatility has drawn a considerable amount of attention. Investors are frantically parking themselves in safe havens and volatility hedging instruments to prepare for the fallout from the vote. We have seen gold and the CBOE Volatility index spike in value last week but in the event that Brexit sparks an international crisis, cash might be the safest investment.

In a recent study titled “No Bulls for Bear Mountain”, Bank of American Merrill Lynch reported investors have amassed the largest stockpile of cash since 2001 and have cut equity holdings to a four-year low. As bond yields continue to fall and an increasing amount of interest rates around the world are turning negative, investors are more likely to

The devastation is still fresh on American’s mind, influencing how many of make investment decisions today. If the global turmoil results in a new recession, cash is an ideal place to park your cash. Investment guru, Mohamed El-Erian advises holding 25% to 30% of your wealth in cash. The response to increasing volatility is not to underestimate the power of cash because it provides agility and resilience in the market.

Concluding Remarks

Cash has begun to look better and better when compared to the glut of problem everywhere else. By the end of this month we will have seen interest rates unchanged, global economic outlook cut and a vote which will decide the fate of the U.K. and European Union. As a result, the S&P 500 is down 1.8% in June with a strong possibility of falling further by the end of this week. SO while cash shouldn’t be the only thing in your portfolio, there is no shame in holding through the current