{"id":1028,"date":"2010-07-20T09:11:11","date_gmt":"2010-07-20T13:11:11","guid":{"rendered":"http:\/\/www.credittrends.com\/blog\/?p=1028"},"modified":"2010-07-20T21:59:40","modified_gmt":"2010-07-21T01:59:40","slug":"maintain-maximum-cash-positions","status":"publish","type":"post","link":"https:\/\/www.credittrends.com\/blog\/2010\/07\/20\/maintain-maximum-cash-positions\/","title":{"rendered":"Maintain Maximum Cash Positions&#8230;&#8230;&#8230;.but"},"content":{"rendered":"<p>We see no reason, with a 9.1% cost of equity capital, to change our current thinking.<\/p>\n<p><strong>But good values do in fact exist<\/strong>, and so I am not advocating an equity portfolio be 100% cash. In fact, a couple of weeks ago, I wrote stocks could conceivably rise as much as 8% this year, given the current FCF multiple, and a small fall to the cost of equity.<\/p>\n<p>Equities of firms which produce strong,\u00a0consistent\u00a0free cash flows, and as importantly, have a return on their invested capital greater than their cost of capital, will see their stock prices rise over time. But investors must buy such firms having a \u00a0current free cash flow yield in excess of \u00a07%. These firms are priced to comfortably rise to a greater degree than bonds, money funds, or real estate.<\/p>\n<p>Please see related stories, and tables throughout this site.<\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/07\/20\/maintain-maximum-cash-positions\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p><div class=\"tweetthis\" style=\"text-align:left;\"><p> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Maintain+Maximum+Cash+Positions%E2%80%A6%E2%80%A6%E2%80%A6.but+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D1028\" title=\"Post to Twitter\"><img decoding=\"async\" class=\"nothumb lazyload\" data-src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" \/><noscript><img decoding=\"async\" class=\"nothumb\" src=\"http:\/\/www.credittrends.com\/blog\/wp-content\/plugins\/tweet-this\/icons\/en\/twitter\/tt-twitter.png\" alt=\"Post to Twitter\" \/><\/noscript><\/a> <a class=\"tt\" href=\"http:\/\/twitter.com\/home\/?status=Maintain+Maximum+Cash+Positions%E2%80%A6%E2%80%A6%E2%80%A6.but+https%3A%2F%2Fwww.credittrends.com%2Fblog%2F%3Fp%3D1028\" title=\"Post to Twitter\">Tweet This Post<\/a><\/p><\/div><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>We see no reason, with a 9.1% cost of equity capital, to change our current thinking. But good values do in fact exist, and so I am not advocating an equity portfolio be 100% cash. In fact, a couple of weeks ago, I wrote stocks could conceivably rise as much as 8% this year, given [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n<p class=\"facebook\"><a href=\"http:\/\/www.facebook.com\/share.php?u=https:\/\/www.credittrends.com\/blog\/2010\/07\/20\/maintain-maximum-cash-positions\/\" target=\"_blank\" title=\"Share on Facebook\">Share on Facebook<\/a><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1028","post","type-post","status-publish","format-standard","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/1028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/comments?post=1028"}],"version-history":[{"count":7,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/1028\/revisions"}],"predecessor-version":[{"id":1074,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/posts\/1028\/revisions\/1074"}],"wp:attachment":[{"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/media?parent=1028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/categories?post=1028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.credittrends.com\/blog\/wp-json\/wp\/v2\/tags?post=1028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}