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When the government handed out money like candy, keeping rates artificially low, banks were lending on everything and paying pretty much 0% to save your money in the bank and you heard this term everywhere “Cash is Trash”. So many people jumped on the bandwagon saying, “This was the time where you could put money in crypto, stocks, starts-up, real estate, cars, watches, etc and it almost seemed about anything was going up in value besides the dollar and the interest you earned in the bank.”

Fast forward to 2023 and that term seems to be lost. The banks and the fed went from paying nada to 5% or more. So with so much uncertainty in the market these days, so many investors of all classes are sitting on record amounts of cash because they can earn 5% + while waiting on the sidelines to see what this economy does over the next 6 months + $1Trillion has left the banks and went into short-term T-bills for safety and 4% + returns.


Banks are pulling back from lending, it will be much harder to raise money from investors, since rates are high it will require more money to put down on deals, a recession looming and so many other factors in the economy that can cause more pain and issues. Cash is king again and those who have lots of cash will do very well in the coming years because they can put more down, pay cash for deals, will not require as much money from investors, and be easier for them to get loans. Just as rates were low and then rates went high, they will go back down, forcing money that is yielding a good return in money market accounts, T bills, CDs, and other avenues will have to put that money back to work in the future.

Cash is always king, it really depends on what you are doing with it but having cash on hand is never a bad thing. Today, I am sure there are many of us that are wishing we had more, saved more, and were more prepared for opportunities that might come ahead.

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