Christopher Grisanti: Holding Cash, Selective on Stocks

Professor Ibbotson discusses market trends, investment strategies, and the importance of cash holdings. He emphasizes a rifle approach to equity markets and highlights the role of financial engineering in corporations. The discussion covers currency holdings, multinational corporations, and potential investment opportunities in companies like Apple and CVS.

What is the main reason for holding cash in the current market conditions?

• To increase liquidity for short-term gains

• To avoid currency fluctuations

• To wait for better investment opportunities

• To invest in real estate

What characterizes 'safety nifty' stocks?

• High dividend yields

• Perceived safety despite low growth

• Low valuation multiples

• High growth potential

Why are consumer staples and utilities considered 'safety nifty' stocks?

• They offer high returns

• They are less volatile

• They have high growth rates

• They are undervalued

What is a common practice in financial engineering by corporations?

• Increasing research and development

• Expanding into new markets

• Reducing employee benefits

• Shifting to lower tax jurisdictions

Which company is mentioned as having a potential investment opportunity due to a new product launch?

• Amazon

• Apple

• Google

• Microsoft