‘Cash is king’ right now, says strategist

Rallies within the current bear market are a good time to reallocate holdings — and staying in cash isn’t a bad idea, says one strategist.

“We’re recommending to take advantage of these times when the market is having a bull rally, during this bear market — to reallocate portfolios —to clean up some of the holdings that you don’t want any more and repositions to things that we like,” Kathy Entwistle, managing director at Morgan Stanley, told Yahoo Finance Live.

“Surprisingly, right now cash is king. It’s very powerful. You’re getting paid for your cash,” she added.

Certificate of Deposit rates have been increasingly higher amid the Federal Reserve’s current monetary tightening policy.

“We also like bonds, municipal bonds, high grade corporate, and also treasuries,” said Entwistle.

The strategist highlighted, “The equity portion is a little tough right now, we’re being very cautious and careful and just legging in when we have more downdrafts in the market…

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This article was written by and originally published on finance.yahoo.com