Taps Coogan – October 13, 2023

The following chart, from Bank of America (BofA) via Isabelnet, shows the cash allocation of BofA private wealth clients:

Cash allocations are slightly below the average since 2005. However, that average includes the very high cash allocations during the Global Financial Crisis. Baring that event and early Covid, cash allocations are at the high end of ‘normal’ for the past decade.

Of course, that’s to be expected now that cash is yielding >5.5%, an attractive rate given the balance of risks facing other assets.