Jason Brady, CEO of Thornburg Investment Management, knows that sitting on the sidelines can be unpopular.
“Cash is very much maligned in the context of providing yield. It costs money to hold cash. I understand people’s reluctance,” Brady said, adding that’s also one reason why the Federal Reserve “makes cash earn zero, is so that people don’t own it.”
Even so, Brady thinks the time is ripe to put more cash on the sidelines as volatility in the U.S. stockmarket picks up, as Congress drags its feet on providing additional fiscal stimulus, and as rancor in Washington intensifies ahead of the Nov. 3. elections.
“You can turn cash into anything,” he told MarketWatch. “But you can’t turn anything into cash.”
Brady oversees strategy and direction for the Santa Fe, N.M.-based Thornburg and its roughly $41 billion worth of client assets. He’s also a co-manager of the multi-asset Thornburg Investment Income