Higher for longer? Maybe waiting isn’t such a bad strategy anymore.

For years, investors had a strong incentive to stay fully invested because cash and short-term bonds offered very little return.

That equation changes when interest rates stay elevated.

If cash and short-duration assets can generate meaningful income, investors have something they didn’t have during the ultra-low-rate era:

A real return for patience.

That changes my approach.

I wouldn’t necessarily sell everything and hide in cash. Instead, I’d think about creating a barbell:

🔹 Keep exposure to businesses with strong long-term growth potential.

🔹 Hold some short-duration assets that can generate income while waiting.

🔹 Keep cash available for periods when valuations become more attractive.

The interesting part is that this gives investors more flexibility.

If markets continue rising, you’re still participating.

If valuations fall, you have capital available rather than having to sell something else to fund new opportunities.

And if rates eventually decline, the opportunity cost of sitting on cash changes again.

So “higher for longer” doesn’t automatically mean risk-off to me.

It could simply mean patience finally has a yield.