Hiding out from market volatility in 'near cash' can be rewarding

You can’t blame any investor for re-evaluating their tolerance for risk after Tuesday’s gut-wrenching stock market selloff, when the S&P 500 and tech-heavy Nasdaq sank the most since June 2020.

As central banks aggressively tighten monetary policy to tame inflation (possibly at the risk of a recession), these are uncertain times for those who count on the markets to grow their retirement savings.  

But the biggest difference between the early stages of the pandemic and now is the availability of options for investors cashing out and heading to the sidelines.

Citadel Asset Management Director and Senior Wealth Consultant Karl Berger told BNN Bloomberg this week it might be best to wait out the central banks’ rate-hike missions in cash-like instruments as yields rise with interest rates.