| By Chaka Ferguson, managing editor, Palm Beach Daily You never know what life can throw at you… The market could fall 50% and give you a rare shot to buy dirt-cheap stocks. You could discover a lucrative business opportunity. Or a huge medical bill or lawsuit might blindside you. That’s why you need cash. You see, cash is the universal asset class because everyone needs it. And at PBRG, we like cash because it provides optionality. So how much cash should you have ready to cover life’s unpredictable events? Today, I’ll tell you how much you should keep on hand. But first… | Recommended Link | | 1.9 billion 5G smartphones by 2023. This tiny company stands to profit. Lately, it seems that everyone is talking about 5G technology… But, does anyone really know what it is? 5G will provide users more coverage at a faster rate, especially for power-hungry streaming content like 4k video and VR… Yet 5G is still in its infancy. If you don’t know which companies stand to benefit – like Silicon Valley executive and angel investor Jeff Brown does – then you’re going to get left behind. A few years ago, he predicted Nvidia would be the number one tech stock of that year. Investors had a chance to make 10 times their money on Nvidia. Now, he’s singled out one company that makes the device to power the 5G revolution… Taking this breakthrough technology from $0 to $100 billion in a matter of months. | | | -- | Cash Gives You Stability Cash is safer than most other investments. But holding cash still comes with risks… The U.S. dollar can (and does) devalue relative to other currencies. And there’s always the risk that inflation will eat away at your cash savings. On top of that, if you keep your cash at home, you could lose it to theft or in an accident. If someone burglarizes your home or it burns down… there goes your retirement. So the idea that sitting on cash is riskless is a fairy tale. That being said, cash can stabilize your portfolio in volatile times. Let’s say you have a $100 portfolio – with $50 allocated to cash and $50 to stocks. If your stock portfolio goes down 10%… your stock position is now worth $45. But your overall position is $95 ($50 in cash + $45 in stocks). So your portfolio has only lost 5%. And if your stock portfolio loses 20%, your overall portfolio only goes down 10%. So cash can ballast your wealth during a market pullback. This is just hypothetical… But it demonstrates the power of asset allocation. That’s the process by which you spread your wealth across different types of investments. Still, it doesn’t answer how much you allocate to cash. I’ll get to that next… How Much Cash Should You Hold? At PBRG, we use a highly diversified portfolio. It includes conservative investments… speculative plays… portfolio hedges… and true alternative assets. And it’s worked spectacularly… For instance, since launching The Palm Beach Letter on April 13, 2011, our recommendations have averaged annual returns of 123.6% through June 30, 2019. But that’s all in the rear-view mirror now. We’re only looking to the future… It’s a new decade. And we expect the market environment to change with it. That’s why Daily editor Teeka Tiwari recently overhauled our asset allocation model… One that will continue to outperform the market in the 2020s. We streamlined it by renaming some asset classes… and creating new categories to reflect today’s market realities. The asset classes now include cryptos, collectibles, private markets, as well as old standbys like gold, real estate, stocks, and bonds – and of course, cash. (Palm Beach Letter subscribers can read our annual asset allocation guide right here.) | Recommended Link | America’s Top Options Expert Millionaire trader Jeff Clark’s options strategies have helped everyday people have the chance to retire wealthy. Which is why he’s now offering his complete Blueprint, and a year of his guidance, for just $19. That’s right… for a limited time it’s all yours for less than twenty bucks. Because he knows that every $1 you use on his strategies could turn into a windfall in a short amount of time. | | | -- | While cash remains an asset class, we did adjust how much we allocate to it. We now recommend you keep up to 10% of your portfolio in cash. That includes checking and savings accounts, money markets, CDs, and certain cash-like ETFs and mutual funds. You should always keep some cash on hand. Whether it’s for an emergency, a bear-market buying opportunity, or something else, you’ll be glad you had some. For example, you can use your dry powder to scoop up quality crypto projects… or cannabis stocks beaten down by negative sentiment. When these assets recover, they’ll make 10 to 100 times your money – and in some cases, even 1,000 times. Whatever life throws at you, cash typically “meets the need” better than anything else. Regards, 
Chaka Ferguson
Managing Editor, Palm Beach Daily P.S. Because of our track record, Teeka’s been called America’s No. 1 investor. And as I mentioned above, our success is due to proper asset allocation. Now, Teeka’s putting his track record and reputation on the line to reveal what he believes will be the top-performing investment of the decade. We love this idea because it crosses asset classes. In fact, Teeka’s so convinced of this idea’s potential, he firmly believes it’ll be the single-best place to grow your money in the next 10 years. It’s a groundbreaking technology that’ll disrupt numerous industries – from healthcare to national security. And you can get the inside scoop right here…
Like what you’re reading? Send us your thoughts by clicking here. IN CASE YOU MISSED IT… Trump Tower blueprint holds key to stock market riches Since 2016, Teeka Tiwari has trumped the stock market. His investment recommendations have averaged 154% per year. That's 10 times the S&P. And 81 times the average investor, according to JPMorgan! However, one investment Teeka just uncovered could top them all… It involves President Trump, billions of dollars, several large banks, and Warren Buffett. As well as a MAJOR upgrade to our credit and debit cards. Teeka, who correctly picked the last two "investments of the decade," is declaring this his top pick for the 2020s. See Teeka's top pick. 
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