Sunday, January 12, 2014

Cash is not an investment

Time can help investments grow in value.  But time doesn't help cash grow in value.  Black Rock posits that between 1926 and 2012, if taxes and inflation are factored in, the compound average annual return for stocks was a positive 4.5% and bonds a positive 0.6%.  But cash had a negative annual return of -0.8%.

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