How much cash should you hold? The answer depends on the financial outcomes you are building towards, as much as it does on the changing market environment.

With the Lunar New Year just around the corner, many people will soon be receiving red packets filled with crisp notes. While that traditional cash windfall is welcome, it comes with an important question: how much cash should I really be holding?

Why care about cash?

The answer matters more in 2026 than it did just a year or two ago. In a reversal of monetary policy, central banks around the world are cutting rates, confident that inflation is contained and convinced that economic growth urgently needs support.  The temptation of many investors may be to “set and forget” cash in legacy savings accounts, or rotate out of cash entirely and into higher-yielding assets. But both approaches would come with significant costs. Cash...