[chassis]

Dalio on cash: no longer trash. I have believed this for a long while. Cash is flexibility and non-correlated with equities. I include short duration Treasuries and CDs in my definition of cash.

From his LinkedIn feed today:

As John Maynard Keynes is credited with saying: “When the facts change, I change my mind. What do you do, sir?” Along these lines, the facts have changed and I’ve changed my mind about cash as an asset: I no longer think cash is trash. At existing interest rates and with the Fed shrinking the balance sheet, it is now about neutral—neither a very good or very bad deal. In other words, the short-term interest rate is now about right.