No broker pays significant interest on cash, so what's the best strategy for holding significant cash between trades?
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No broker pays significant interest on cash, so what's the best strategy for holding significant cash between trades?
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I hold cash in my brokers account although it pays nothing because i want to react fast when required.
I suppose it depends with timescales and how much money we are discussing how and where the money should be put. I dont think its worth the hastle for me personally as I regularly top slice fully valued holdings while topping up on cheaper valued holdings.
I suspect this is a non issue for most.
You might also consider finding a high yielding stock with a very low valuation, e.g. Awilco Drilling (OSL:AWDR) is on a fwd pe of 5.5, has a low price to FCF value of 4.6, and is currently yielding 18%. The company has committed to distributing free cash in the form of dividends and has been paying them on a quarterly basis.
Enjoy
Phil