The Case For Putting Cash Back To Work

Mar. 18, 2023 11:05 AM ETMCD, WM50 Comments


  • The new year started off strong, and investors welcomed a broad relief rally. I met this with relief too, but also with a mix of skepticism.
  • As a result, I suggested locking in some gains and taking some chips off the table post-January. While stocks continued up briefly, they have come well off their recent highs.
  • This justified the move to cash. Now, with the market indices down about 6-7% in a month, I see merit to putting some of that cash back in the market.
  • In this review, I will cover some key reasons why stocks are investable - albeit nowhere near risk-free. I will also touch on a few defensive names for those who don't want broad large-cap exposure.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

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Main Thesis & Background

The purpose of this article is to discuss the broader equity market and re-cap a bearish review I had in early February. At that time, I suggested using January's rally as an opportunity to

1-Month Return

1-Month Return (Google Finance)

SVB Share Price

SVB Share Price (The Economist)

Bank Failures (By Calendar Year)

Bank Failures (By Calendar Year) (S&P Global)

Forward Earnings Estimates

Forward Earnings Estimates (JPMorgan Chase)

February Jobs Report

February Jobs Report (Bureau of Labor Statistics)

PMI Graphic

PMI Graphic (Institute for Supply Management)

Waste Management Share Price (2023 YTD)

Waste Management Share Price (2023 YTD) (Seeking Alpha)

Recent Dividend Hike

Recent Dividend Hike (Seeking Alpha)

CPI vs. Wage Gains

CPI vs. Wage Gains (U.S.) (Bureau of Labor Statistics)

New Products

New MCD's Products (MCD's Investor Center)

Consider the Income Lab

This article was written by

Dividend Seeker profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

I've been an investor since 2008, which was an invaluable and humbling experience. This is central to my strategy of looking for quality, value, and diversification - generally staying away from risky/over-hyped ideas. I won't pump any investment nor discuss a topic I don't genuinely follow / research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP



Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: NEA, PCK, VCV, PML, BGT, PDO


Cash position: 25%

Disclosure: I/we have a beneficial long position in the shares of VOO, RSP, QQQ, DIA, WM, MCD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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