Tired of the ups and downs, mostly downs, of the stock market? Cash is the safest option, the one used by some of the wealthiest investors, but certainly not the only one.
”We are about preservation of capital first and growth second,“ said Jim McCarthy of Legacy Capital.
McCarthy said many of the firm's clients — with more than $1 million in assets and an average portfolio of $2.5 million — have moved to safe Treasury bills and high-quality bonds over the past year.
”We've been moving into cash and not riding it out,“ he said. ”For us, it's wealth preservation.“
But most investors aren't moving en masse to cash, yet, said Jerry Kinlock, president and chief executive of Sacramento Credit Union.
At Golden 1 Credit Union, Chief Financial Officer Donna Bland said more people are leaving stocks and mutual funds for money market accounts, short term certificates of deposit and high-yield checking accounts.