Fiscal stimulus is one way to get things going. However, if govt has to step in an guaranteee Fannie and Freddie it is only gonna constrain further spending beyond that.
I’ve been trying to derisk and find places to park cash. I’m continuing to increase gold holdings (via ETFs) and I’ve done well with gold in last couple years. I will be liquidating a bunch at some point to buy a house.
All other areas of “cash” are more risky in my eyes
. The Dollar has been hammered the past year, and will probably continue to decline. If you have owned Euros or Loonies you have done very well.
When someone says they are now in “Cash”, I try to ask some questions….
Is your cash parked in an FDIC-insured institution?
Is your cash parked in a 5year CD? If inflation (stagflation like the 70s) rears it’s head, you are locked in a CD with a poor rate of return on top of a weakening dollar.
I’m still keeping some cash in short term CDs, the spread in the 6 month vs 5 year is still pretty small.
