simoan wrote:Who's Ray Dalio? Who cares what he thinks? He's not you, and only you understand your own personal circumstances and what amount of cash you should be holding for your life situation, to make sure you can sleep at night no matter what is happening in commodity, stock and bond markets,
A search engine will show who Ray Dalio is and what he thinks.
For those who can't be bothered the appropriate search may be "Cash is Trash".
His argument is that there is a determined policy to destroy the value of cash by the state. He is US based and argues from a US view. However given that the BOE currently has a target of devaluing the £ by 2% pa (target of 2% inflation), I find it difficult to disagree with the argument.
Doing a quick check the latest CPIH is 0.7%, but the ONS regard that figure as just a best guess due to Covid.
It was 1.5% in March, before you couldn't buy most things in the basket used.
From what I can find:
The best five year fixed cash ISA is 1.3% (shawbrook bank).
Easy access 0.9% best.
I can't find an account that beats what I believe inflation actually is.
There may indeed be many reasons to hold cash, but Mr Dalio has a very good point.
I'm one of those who can't be bothered switching. I regard a fixed cash account as a LOT less flexible than buying shares. Certainly NOT a place to put emergency funds. Of course equities are far more risky and you may pay a penalty if you really need funds in an emergency (though you can get them).
I also question the implication that we can go out and open a Marcus account if we want a better rate. It closed to new money earlier this month!