The studies of Robert Nason and Pankaj Patel, professors at Concordia and Villanova universities, showed that the more cash (not assets) a company holds, the higher it will be valued at.
This is against the declaration of hedge fund legend, Ray Dalio, who you will remember that as early as January 2020, he famously said that cash is trash and that every bit of extra cash you hold should be invested.
We all learn painfully that opinions can change quickly in a matter of months.
The 2008 recession taught us that fixed expenses such as student loans, rent, groceries, and even credit card payments won’t pause even if you lose your job or source of income.
Now, 2020 is here and another recession is imminent. Do you have enough cash reserves to weather this coming storm? It’s never too late to make stacking up a cash reserve a top financial priority!