At the end of April I sold a large commercial real estate property I had held for almost 40 years. It was a great time to sell as cap rates were very low. Since then I have proceeded to dip my toe into the water buying a little stock now and then. About 25% of the sales proceeds went into mostly buying a few more shares of stocks I knew well and had held a long time. Then...drum roll...short term T-bills moved into the 3% range and I have put almost all the rest of it into them. I will need to pay taxes on my gain 4/15/23 and a sufficient amount of them to pay my tax bill will mature prior to that date. As I see it the market has a far higher probability of going down for a while than going up so I feel defensive.
"For much of the last 12 years, cash yielded nothing, and allocating to it represented a deliberate choice to pay an often high price for insurance. But times change. Cash yields have risen sharply at a time when Morgan Stanley’s forecasts for global cross-asset returns are low, squeezed by tighter policy if economic data continue to hold up, and higher risk premiums if the data turn down. The market is giving investors the opportunity to earn ~3% on safe, liquid T-bills, or ~5% on safe (but less liquid) short-duration CLO AAAs, and somewhere in-between for other AAA securitized paper that has cheapened as banks have faced RWA constraints. These aren’t the most exciting investments, but sometimes it makes sense to take what the market gives you."
From:
Morgan Stanley: Cash Looks "Relatively Attractive" Right Now | ZeroHedge