The Wolf Den #414 - Cash Is King Or Cash Is Trash?
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Cash is trash. Cash is also king. How can both be true?Cash Is KingI often preach the importance of having dollars in your portfolio. I prefer to always have at least 15% of my holdings in dollars for my equity portfolio and USDC for my crypto portfolio. The latter is far preferred, as it is earning interest in CeFi and DeFi. This “cash” is highly liquid and, although stable in price, volatile in value.The value I am referring to here is the buying power of your dollars. As an asset (Bitcoin, for example) goes down in value, my dollar value rises relative to the asset - I can buy more of it. Having 15% USDC in your portfolio on a down day helps mitigate the loss in sats - your dollars are increasing in Bitcoin value. The dollars specifically in your portfolio act a bit like altcoins, allowing you to stack sats in a volatile market.This is a long term strategy, allowing you to weather storms and have dry powder to buy dips.Cash Is TrashYou probably already know why - inflation. The recently released CPI numbers showed 7% inflation year over year, marking the largest gain since 1982. The value of your dollars relative to consumer goods is diminishing by the day. Those dollars that you have stashed away may represent the same nominal value over time, but their buying power is diminishing rapidly.And if you find yourself having to purchase a used car? You are completely screwed, with inflation on these assets running at 6x - 7x the numbers on other goods.Great investors are aware of these diametrically opposed viewpoints and are masters at managing their dollars accordingly. Cash management is a skill that requires the same level of diligence as overseeing any other asset in your portfolio.We have not even talked about setting aside enough cash from your trades and investments for taxes... maybe we will save that for another day.In This Issue:Cash Is King Or Cash Is Trash?Bitcoin Thoughts And AnalysisIndia Approves Crypto ETFCrypto FED Report Coming SoonIs Big News Coming?Untold StoriesMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #414 - Cash Is King Or Cash Is Trash?
The Wolf Den #414 - Cash Is King Or Cash Is…
The Wolf Den #414 - Cash Is King Or Cash Is Trash?
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Cash is trash. Cash is also king. How can both be true?Cash Is KingI often preach the importance of having dollars in your portfolio. I prefer to always have at least 15% of my holdings in dollars for my equity portfolio and USDC for my crypto portfolio. The latter is far preferred, as it is earning interest in CeFi and DeFi. This “cash” is highly liquid and, although stable in price, volatile in value.The value I am referring to here is the buying power of your dollars. As an asset (Bitcoin, for example) goes down in value, my dollar value rises relative to the asset - I can buy more of it. Having 15% USDC in your portfolio on a down day helps mitigate the loss in sats - your dollars are increasing in Bitcoin value. The dollars specifically in your portfolio act a bit like altcoins, allowing you to stack sats in a volatile market.This is a long term strategy, allowing you to weather storms and have dry powder to buy dips.Cash Is TrashYou probably already know why - inflation. The recently released CPI numbers showed 7% inflation year over year, marking the largest gain since 1982. The value of your dollars relative to consumer goods is diminishing by the day. Those dollars that you have stashed away may represent the same nominal value over time, but their buying power is diminishing rapidly.And if you find yourself having to purchase a used car? You are completely screwed, with inflation on these assets running at 6x - 7x the numbers on other goods.Great investors are aware of these diametrically opposed viewpoints and are masters at managing their dollars accordingly. Cash management is a skill that requires the same level of diligence as overseeing any other asset in your portfolio.We have not even talked about setting aside enough cash from your trades and investments for taxes... maybe we will save that for another day.In This Issue:Cash Is King Or Cash Is Trash?Bitcoin Thoughts And AnalysisIndia Approves Crypto ETFCrypto FED Report Coming SoonIs Big News Coming?Untold StoriesMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO