The point Ms. Beck seems to be missing in this article is not about whether or not it’s a good strategy to hold more cash in your portfolio, but what kind of cash or other asset is/are best. Holding onto large sums of U.S. dollars now is like trying to fill your bucket when there is a hole in the bottom. Because of the Obama strategy of printing money, and spending trillions of dollars that we simply don’t have the dollar is simply becoming worth less and less by the minute. Soon we will be like pre-war Germany where a wheelbarrow full of Deutsch Marks couldn’t even buy a loaf of bread.
ALL BUSINESS: Cash is king for investors
Jul 4, 4:57 AM (ET)
By RACHEL BECK
NEW YORK (AP) – That old saying “cash is king” certainly rings true these days. Investors can’t seem to get enough of it, which ultimately could be bad news for the stock market and the economy.
In the past, investors would cling to cash until the market’s prospects brightened and then money would pour back into stocks. That’s just what the bulls today are hoping will drive a surge on Wall Street in the months ahead.
But the shock of the financial crisis – which have made leverage and risk-taking dirty words – may be changing all that. Even with today’s minuscule returns, cash seems to have become a sought-after asset class among investors who intend to keep it as a part of their portfolios for the long term.
… (rest of article HERE)
Filed under: Econonomics | Tagged: cash, debt, dollar, economy, investing, money, spending, stocks
