Should Value Investors Move To Cash?

The news that Mohamed El-Erian, the former chief executive officer at PIMCO is currently holding mostly cash has re-ignited the cash debate. El-Erian is concerned about the fact that central banks have artificially lifted asset prices, by maintaining zero interest rates and using their balance sheets to buy assets. But is a high cash allocation a wise choice? Cash: Addictive nature Maintaining a suitable level of cash in your portfolio, which will allow you to take advantage of opportunities when they arise is always a prudent decision. However, holding a high percentage of cash isn’t always the best way to…