Comment by aredox
4 days ago
Honestly, if you don't cash in right now, you are playing with fire. We are on our way for a big correction.
4 days ago
Honestly, if you don't cash in right now, you are playing with fire. We are on our way for a big correction.
>Honestly, if you don't cash in right now, you are playing with fire. We are on our way for a big correction.
Says everyone always. I've watched my cash savings inflate away like crazy over the last few years. Basically anyone who doesn't hold real assets is screwed at this point.
Cash parked in money markets (which is just a click away) hasn't done that badly. Getting 4-5% has kept pace with inflation for the most part. Especially now, with economic risks to the downside/slower growth arguably growing, cash doesn't look that bad (until rates are lowered, which will put investors in a pickle, and probably force them modestly out the bond duration curve). Obviously inflation (or more specifically stagflation) risks are clear grey swans as well though, so some exposure to gold (or CTA trend following, which performs well in stagflation) is probably a prudent addition to a diversified asset mix looking to protect against the known risks. And as a benefit, gold and CTA are fairly decent black swan hedges as well (but it's a bit pointless to try and protect against black swans, which are unpredictable by definition).
>Cash parked in money markets (which is just a click away) hasn't done that badly. Getting 4-5% has kept pace with inflation for the most part.
This sounds good on paper until you realize that inflation numbers like core CPI are tied almost entirely to consumptive costs. For anyone saving cash with the hope of buying assets like a home at some point, you're watching that move further and further away every day. So you're left to either deal with the stress of taking part in the madness of this market, or watch your chances of ever owning anything slip away.
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