Higher yields do not automatically make longer-duration bonds attractive, as persistent inflation, resilient growth, and heavy debt issuance could maintain upward pressure on yields in the near term.

Amid higher interest rates and consequently higher yields, investors have piled into cash. My guest today will explain why it’s time to make a move. His position is that cash should be an asset to provide for short-term (less than 12 months) liquidity needs. Beyond that, investors should consider an appropriately diversified portfolio to achieve their financial goals. While short-term performance may work in investors’ favor, he will argue that over the long term, the benefits of being invested outweigh the potential short-term benefits of sitting in cash.

Global Head of Client Portfolio Management Seth Meyer discusses the hidden risks and potential strategic pitfalls of sitting in cash.