We are Not Stockbrokers & Why That Matters: Part I 

Six Things You Should Know

1. Equity Markets – Equity Markets –  were up this week with U.S. stocks (S&P 500) gaining +1.10% while international stocks (EAFE) rose +2.10%.
2. Fixed Income Markets – were mixed this week with investment grade bonds (AGG) losing -0.09% and high yield bonds (JNK) adding +0.30%.
3. Fed Meeting – The Federal Reserve voted to hold rates steady at 3.5%-3.75%, citing solid economic growth and a stable labor market despite elevated uncertainty. Inflation remains above target, and three officials voted in favor of a 0.25% hike, underscoring the Fed’s continued focus on price stability.
4. U.S. GDP – U.S. real GDP grew at a 1.5% annualized in Q2, slowing from 2.1% in Q1. Beneath the softer headline, consumer spending strengthened and private domestic demand rose a solid 3.9%, although inflation pressures accelerated.
5. Cybersecurity Reminder – Scammers are increasingly using Remote Access Tools (RATs) along with phishing emails or texts to take control of devices like phones, tablets, and computers. Once installed, these tools can give cybercriminals access to sensitive information, including your Schwab accounts. These attacks can be hard to spot, so if something doesn’t feel right- like unusual account activity or suspicious messages- trust your instincts. If you sense suspicious activity, please call us immediately or report any concerns to Schwab at 800-515-2157. 
6. Key Insight – [VIDEO & ARTICLE] Many investors continue to frame advisors as though they are old-school stockbrokers. Such a view misses out on the opportunity to solve so many real issues such as the current realities around high cash balances (and related false dilemma of choosing between “safe” cash versus “risky” stocks) which we’ll discuss this week, as well as the importance of asset location and distribution strategies to help improve net returns which we will cover next week.

Insights for Investors

By Tim Mitrovich

The Hidden Danger 

We’ve talked with a number of new clients and prospects of late that were unknowingly taking on longevity risks as it relates to their assets, yet holding outsized cash positions in an effort to balance risk within their portfolios. This phenomenon is happening broadly as well, with investors holding extraordinary amounts of cash in general – a reality that says as much about psychology as it does about markets.[1][2] U.S. money market fund assets reached a record $7.92 trillion for the week ended June 17, 2026, and then remained elevated at $7.86 trillion for the week ended July 15, 2026.[1][2] That is not a small tactical shift. It is a massive statement about caution, uncertainty, and the desire for control in an investment environment that has asked a lot of investors emotionally over the last several years. 

One big reason for this is a lack of understanding of all the different investment options that exist from cash alternatives all the way to private investments that might be a fit for investors’ personal goals. We know this, because time and time again when we ask about a large cash position, we hear something to the effect of “we don’t want to put it in the stock market” as though that was the only other option, as well as their presumption that that is what we had in mind; as though we were an old-school stockbroker, always pushing stocks. As we’ll discuss, the danger in these clients’ cash-heavy approaches is the danger from inflation eroding their purchasing power over time, as well as a failure to focus more broadly on the other aspects of planning. 

 
Cash Isn’t Bad, It Just Needs a Job 

There is nothing inherently wrong with cash. In fact, cash is often useful and sometimes essential. It can represent discipline, patience, preparedness, and the flexibility to act when opportunities appear.[3][4] But cash becomes a problem when it stops being part of a plan and starts becoming a substitute for one. That distinction matters, because many investors feel prudent while sitting in cash even as inflation quietly chips away at what that money can actually do for them over time.[4] 

That is where the value of real advisory work becomes clearer. The goal is not to convince every investor that cash is bad or that all idle money needs to be rushed into the stock market. The goal is to help people think correctly about allocation. A fiduciary advisor’s job is to assess goals, time horizons, liquidity needs, tax considerations, and risk tolerance, and then build a structure that reflects those realities and explores the many opportunities that exist to address them. At TEN Capital, we invest time into our clients’ stories guided by a philosophy centered on client individuality and personalized solutions. That is a very different assignment from simply selling stocks, and it is one of the clearest reasons many investors still misunderstand what good wealth management should look like. 

A Different Frame for the Conversation 

A lot of the financial industry still suffers from an old image problem. Many investors understandably assume that the advisor across the table is really a stockbroker with a broader title. In that older model, the conversation tends to revolve around what to buy, what to sell, and whether now is the time to get more aggressive or defensive. The hidden assumption underneath all of it is that the shelf is mostly filled with stocks, bonds, and mutual funds, and the task is simply to decide which one to emphasize. 

But that framework is too narrow for what investors actually need. At TEN we focus on helping clients understand how portfolios connect back to their personal goals and building relationships that are less transactional and more relational, less sales-driven and more interpretive. 

That difference is not cosmetic or superficial. It changes the nature of advice and produces outcomes clients can feel. When the starting point is the person rather than the product, cash is no longer just uninvested money waiting to be fixed. It is one part of a larger allocation question. Some cash may need to remain liquid because a business owner has an acquisition in mind, a retiree needs near-term distributions, or a family wants flexibility around taxes and estate decisions. Some cash may be excessive and inefficient. The right answer depends on one’s personal circumstances and it’s our job to walk through that with you.  

Why So Much Cash Feels Comfortable 

It is easy to understand why investors have embraced cash. Money market yields became attractive after a long period in which cash earned very little, and the simplicity of seeing a stable balance can feel reassuring.[4] In a world of persistent geopolitical headlines, uneven economic data, and market concentration concerns, cash offers the emotional appeal of doing something without appearing to take much risk.[4] 

The problem is that emotional comfort and strategic usefulness are not always the same thing. As BlackRock’s 2026 Income Outlook argues, the era of easy income from cash is fading as rates move lower, and it makes the case for diversified, risk-aware income strategies rather than overreliance on cash balances.[4] That is an important point because many investors unconsciously anchor to current yields as though they are permanent. They are not. A cash allocation that felt productive in one rate regime can become underpowered fairly quickly in another.[4] 

Cash also creates an illusion of safety when measured only in nominal terms – not absolute terms! The account balance does not move much, so the investor feels stable. But nominal stability is not the same as preserving purchasing power. The real measure is what those dollars can buy in the future, and that is where inflation has a persistent advantage over idle capital. 
 

The Quiet Cost of Inflation 

Inflation rarely feels dramatic in one isolated month. Its real force comes from compounding. At 3% annual inflation, the arithmetic is straightforward. Over 10 years, the price level rises by approximately (1.03)^10=1.3439, which means one dollar of purchasing power falls to about 74.4 cents in today’s terms. Over 20 years, (1.03)^20=1.8061, so that same dollar’s purchasing power declines to roughly 55.4 cents. 

That is the corrosive effect investors often underestimate. A dollar left untouched in cash still looks like a dollar on the statement, but its economic usefulness steadily erodes. After 10 years of 3% inflation, it buys about one-quarter less. After 20 years, it buys a little over half as much. No dramatic market selloff is required for that loss to occur. Time and inflation do the work on their own. 

This matters even more for people with long time horizons, multigenerational objectives, or retirement periods that may stretch for decades. An investor who overuses cash is not simply avoiding volatility, they are locking in a quieter form of impairment, especially if the capital was intended to support future income, spending, philanthropy, or legacy goals. 
 
In Closing 

True wealth management is about having a wide array of solutions to bring to the table not only regarding investment options, but how and where to deploy them tailored to each client’s specific goals and situation. Failure to do so can result in a much bigger cost than any fee, temporary market downturn or stock to bond ratio within a portfolio – all of which so many investors spend endless time worrying about. 

That said, it is an advisor’s obligation to have and know those solutions thoroughly, take the time to truly understand your needs and then not just implement them for you but help you connect with the “why.” 

As always, if you are someone you care about could use such guidance, we are always here to help. 

Have a wonderful weekend, 

Tim and the team at TEN Capital 

 
Endnotes 

1. Investment Company Institute, “ICI Data Show Money Market Fund Assets at Record High,” June 17, 2026. https://www.prnewswire.com/news-releases/ici-data-show-money-market-fund-assets-at-record-high-302804869.html 

2. Investment Company Institute, “Release: Money Market Fund Assets,” July 15, 2026. https://www.ici.org/research/stats/mmf 

3. Office of Financial Research, “Money Market Fund Monitor.” https://www.financialresearch.gov/money-market-funds/ 
4. BlackRock, “2026 Income Outlook: If easy income is over, what’s next?,” Jan. 6, 2026. https://www.blackrock.com/us/financial-professionals/insights/2026-income-outlook 

Data, Just the Data

• U.S. Durable Goods Orders – rose 0.3% in June, but much lower than the 1.6% expected improvement. This follows a 4% slump in May.
• U.S. Consumer Sentiment – The University of Michigan Consumer Sentiment Index saw an upward revision to 55.2 in July from a preliminary 54, reaching its highest level since February. Year-over-year sentient is 11% lower.
• U.S. Jobless Claims – initial claims rose by 9,000 last week at 197,000 following the previous week’s 57-year low, but still remained below expectations of 200,000. Continuing claims fell further by 7,000 to 1,782,000 for the lowest level in over a month.
• U.S. Personal Incomes – rose 0.2% month-over-month in June but below expectations. An increase in employee compensation was slightly offset by a decline in farm proprietors’ income.