Cash is (Still) King
Finance (Photo credit: Tax Credits)
Reasons for being in cash right now:
A) Europe is on the verge of a financial meltdown that could dwarf the 2008 financial crisis - bank failures could lead to sovereign defaults - this will be felt globallyB) Bond yields are paltry and could get crushed if inflation picks upC) Stock market has sold off but is still high relative to weak growth fundamentalsD) Real estate could take a header if there is another financial crisis, but will benefit from low interest rate environment in the meantime; price appreciation won't arrive until foreclosure inventory is gone - could be a few more years before that happensE) Growth story (or lack of it) results in little direction for commodities
Longer term, real assets are better than financial assets if money printing by central banks continues (which seems like the most likely outcome to combat economic weakness and financial crisis).
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