For the Risk-Averse Investor

A Simple Way to Think About Risk Right Now

There are moments like this where you feel suspended in the air, like sitting on a swing above a rushing waterfall, with all that force and noise just below your feet.

The war in Iran has a lot of people worried and for some, even panicked. That’s understandable. We’re seeing it ripple through markets in real time, especially in energy and broader volatility. One day feels steady, the next feels reactive. It’s not a clear trend, it’s a push and pull.

I moved risk off for clients weeks ago, not because we can predict events like this, but because we prepare for environments where uncertainty rises.

There’s a saying among traders who want to protect what they’ve built:“Cash is a position.”  Cash gives you stability when markets are moving quickly. It creates space to think clearly instead of reacting emotionally. And most importantly, it gives you the ability to act when real opportunities appear.

But we’re not just sitting still.  We can put that cash to work carefully and intentionally while the rest of the world is still reacting.

Short-term Treasuries and high-yield cash accounts are still offering attractive yields. On $500,000, earning around 4% puts you at roughly $20,000 a year, steady, predictable, and without market stress. This becomes your foundation, your “sleep-at-night” capital.

At the same time, when markets move sideways with volatility, income becomes your anchor. You’re not relying on price appreciation, you’re getting paid while you wait.

That’s why high-quality dividend stocks still have a place, even for more conservative investors. Companies like Bristol Myers Squibb (BMY), yielding around 4.5%–5%, can provide consistent income. On $125,000, that’s about $5,600–$6,250 per year, regardless of short-term price swings. If the stock trends modestly higher over time, that becomes an added tailwind.

Here’s what a conservative $500,000 allocation might look like today:

• $275,000 in cash / Treasuries → about $11,000 annually

• $150,000 in dividend stocks → about $7,000–$7,500 in income

• $75,000 reserved for selective opportunities

  
  

That creates roughly $18,000 - $19,000 in income, before any market upside.

And that last portion is where patience turns into opportunity.

If momentum shows up and conditions align, like today March 23, 2026 we can deploy that capital. A 10%–15% move over a few weeks adds $7,500–$11,250. If the market doesn’t offer it, we don’t force it. We wait.

If you’d like to walk through what this could look like for you, I’m always here.