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In a compelling article by BlackRock, they make an argument that even though we are facing higher than normal inflation and turmoil, that fear is driving investors to hold too much cash.

This is evidenced by the chart below, which shows the levels in cash spiked during COVID and has not returned.

Our view is that in the long run, holding too much cash can be just as speculative as holding too little. This is because cash has a negative return after inflation and opportunities for growth in other investments are missed.