If Cash Is King, This Is Its Queen

Stop sitting in cash when you can do this… [TradeSmith Daily]( If Cash Is King, This Is Its Queen By Michael Salvatore, Editor, TradeSmith Daily “Cash is king,” say the gamut of stock market bears and conservative investors, who fear falling stock prices will erode their wealth. “Cash is trash,” say the growth-minded and optimistic, who believe buying stocks is the only winning move… and holding cash is just as good as missing out. But these days, high inflation and falling stock prices are challenging both assumptions. If cash is king, why did it lose 9% of its value in a year? And if cash is trash, why was it still one of the best performing assets of the 2022 bear market? As is often the case in life, both extremes have it wrong. And there’s a simple solution here I’m willing to bet you’ve never heard of. Here’s my take… Cash is indeed king. But there can be no king… indeed, no kingdom…without a queen. I’ll show you exactly who this “queen” is today… and how it can provide the best of both worlds: inflation-beating yield and convenient liquidity, all without leaving your trading account. RECOMMENDED LINK [Two Legendary Stock Pickers Reveal No. 1 Tech Pick for 2023]( They picked Nvidia before its stunning 669% rise. Now they’re unveiling the biggest tech investment opportunity in years – a tiny, little-known microcap stock ready to pop. [Click here for urgent details]( Secure Your Cash Kingdom When the Federal Reserve started raising interest rates to 40-year highs, the prospect of earning needle-moving yield on your idle cash became quickly apparent. Right now, the 3-month Treasury bill sports an annual yield of 5.32%. That means if you held $10,000 in this bill reinvested each quarter for a year, you’d receive four interest payments totaling $530.20. Cash is king, but yield is its queen. Cash without yield is a slow but sure wealth-killer, especially in times of high inflation… And yield without cash almost always presents higher risk — you need to buy a stock that pays a dividend, or a corporate bond, to get it. Viewed this way, having strong yield on your risk-free cash is a match made in heaven. So, since Treasurys are “risk-free yield” (I’ll address these sneer quotes another time)… we should buy them, right? Yes… sort of. First off, have you ever actually tried buying a Treasury bill? If you’re going to buy from the Fed, the only place that can guarantee the phrase “risk-free,” it’s not exactly convenient. First you have to open an account on the TreasuryDirect website… which feels like it was designed with the threat of Y2K in mind. Then you connect your bank account… navigate a confusing list of Treasury auctions to make a purchase… wait for it to clear… wrestle with archaic passwords and email codes… wait two business days after your purchase to start earning yield… and on and on. Point is, it’s a hassle to set this up. You can’t even use your browser’s “Back” button or the website breaks. Seriously. But compared to the real downside, these are all minor annoyances. Imagine you face a family emergency and need funds ASAP. Or less seriously… imagine stocks drop 20% and you want to take advantage of better prices. Well, holding Treasury bills with the Fed means you’re going to have to wait at least 45 days before you can move them… which you have to do before you can sell them. And if you need to sell your Treasurys early, you may see a capital loss… and doing so, in some cases, requires filling out a form and physically mailing it before you can get your funds. Don’t get me wrong, TreasuryDirect is a solid place for long-term savings. But it’s a terrible place for liquid trading capital. Fortunately, there exists a four-letter ticker that offers most of the benefits of short-term Treasurys with none of the hassle… The Trader’s T-Bill I’m talking about the iShares 0-3 Month Treasury Bond ETF (SGOV). This ETF invests in short-term Treasury bills and returns the proceeds to shareholders as a monthly dividend payment. That means, instead of buying T-bills, you can simply hold this stock in your brokerage account with your idle cash… receive monthly dividends depending on how many shares you hold… and whenever you need the cash, simply sell SGOV and put your capital to work. The yield on SGOV is just a hair under 5%, so you’re giving up a chunk of yield to use it. However, that yield is still higher than inflation… and the fund’s expense ratio of 0.13% is among the lowest in its class. Bear in mind, the chart of SGOV is a little odd. The capital gains appreciated throughout the month are effectively “reset” by the distribution. But this is one to buy and hold, not really trade. All this said, SGOV is not the “risk-free rate” you would get from buying at the Fed. It’s a security, and comes with a whole different set of assurance because of that. It’s probably 99.99% risk-free… but an element of risk remains. If you’re sitting on a bunch of cash in your trading account and looking for an all-but-risk-free place to put it, I don’t think you can do better than SGOV. (If you can, and want to look smarter than me, write me at [Feedback@TradeSmithDaily.com](mailto:feedback@tradesmithdaily.com) and I’ll look to share your idea with your fellow readers.) And hey, on that note… RECOMMENDED LINK [Something is Coming for America’s Top Stock]( This stock has already doubled this year - but it could hurt your portfolio if you hold it much longer. [Learn why here]( The Best Cash Source I’ve Ever Seen We’ve talked about the king and queen — cash and yield. Now, let’s talk about building the kingdom. A kingdom needs revenue. It needs to bring dollars — or francs, or crowns, or gold doubloons, whatever — into the castle gates. Similarly, you as an investor need to find a way to consistently bring in cash into your trading account to build your wealth. How do you do that? I mean… you HAVE been reading this newsletter for the past week, haven’t you? One of the greatest sources of cash I’ve ever seen for your investment kingdom is [TradeSmith’s Constant Cash Flow strategy](. It uses a proprietary trading algorithm to spot the lowest-risk, highest-return opportunities to sell put options for premium every single day the market is open. Low-risk, high-reward sounds like an oxymoron. But that’s what’s so rare and wonderful about Constant Cash Flow. Since we started sharing these trades with our readers in March of this year, the system has racked up an exemplary 99% win rate with a minimum of $10,000 in cash profits. Think of it this way. If you make the average U.S. salary of about $60,000, using Constant Cash Flow for a few minutes every day since March would’ve given you a raise of over 16%. Then, if you stored all those funds in SGOV, a year from now you’d bump that up to nearly 18%. That’s no cost-of-living adjustment. That’s a raise that beats the pants off of inflation and moves the needle on your wealth kingdom into the green. As I've been saying all week long, our CEO Keith Kaplan [recently went live with his Seven Figure Retirement plan](. Keith is so confident in this strategy’s ability to fund a comfortable retirement for you and your loved ones, he’s providing an ironclad guarantee for everyone that signs up through tomorrow October 10 at midnight ET. - Your first trade using Constant Cash Flow will be profitable, or you’ll get a full cash refund. And… - If the strategy doesn’t produce a win rate of 97% over the next year, you’ll get a second year 100% free. Keith has never offered a guarantee quite like this before. But then again, there’s never been a strategy Keith could be so extremely confident in. Once again, the offer stands until midnight ET on October 10. I highly encourage you to [click here and see the strategy for yourself]( so you can make your decision well before then. To your health and wealth, Michael Salvatore Editor, TradeSmith Daily Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. 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