Cash vs. Dividend ETFs vs. Bond Funds: Why T-Bills Are My Favorite "Dry Powder" Right Now

Group 1 - The concept of "dry powder" refers to having liquid funds available for investment opportunities when they arise, emphasizing the need for stability and liquidity over yield chasing [4][8] - The stock market can experience dips even in a strong economy, suggesting that holding back some investments in S&P 500 ETFs may allow for better purchasing opportunities in the future [5] - Dividend stocks were considered but ultimately rejected due to their potential volatility and risk during adverse market conditions, which does not align with the need for immediate liquidity [7][9] Group 2 - Ultra-short Treasury bills are highlighted as a suitable alternative for "dry powder," as they provide stability and liquidity while offering interest in the current economic environment [8]