Subject: Re: OT Cash balances keep soaring
s a real 1% all that great?
...
Depends what you expect the alternatives to return. I expect a negative total return for equities in the next 3-5 years.

One of the best posts of the year.

Besides, the "value" return on cash isn't the interest rate. That's a side show. It's the incremental return it gives you the opportunity for by deploying it at a decent rate when the time comes.

The fact that short term interest rates currently (and anomalously) offer a positive real return after tax is just a happy bonus, though not really material. It's about the pouncing.

Jim