just how dangerous is cash?

[scaredyclassic]

so is it reasonably safe to keep money in t he bank? doesn’t it seem like an odd moment in history if one can legitimately be concerned about the danger of having money in the bank? At least int he 70’s the bank paid you some interest, didn’t it?

[CA renter]

scaredy,

We are in the same boat and have the same concerns as you. Wish one of us had a crystal ball.

Yes, this is an odd moment in history WRT cash. 🙁

[CA renter]

scaredy,

We are in the same boat and have the same concerns as you. Wish one of us had a crystal ball.

Yes, this is an odd moment in history WRT cash. 🙁

[CA renter]

scaredy,

We are in the same boat and have the same concerns as you. Wish one of us had a crystal ball.

Yes, this is an odd moment in history WRT cash. 🙁

[CA renter]

scaredy,

We are in the same boat and have the same concerns as you. Wish one of us had a crystal ball.

Yes, this is an odd moment in history WRT cash. 🙁

[CA renter]

scaredy,

We are in the same boat and have the same concerns as you. Wish one of us had a crystal ball.

Yes, this is an odd moment in history WRT cash. 🙁

[(former)FormerSanDiegan]

If your cash is earmarked for an eventual real estate purchase the only thing that matters for that cash is the relative value of real estate.
As long as real estate does not appreciate signficantly, you are fine.

Now, as for cash above and beyond what you have earmarked for real estate, that is another issue.

Personally, I like to diversify, aiming towards bout 35% of my assets in cash, 20% in property and 35% in US stocks. The remainder is scattered among commodities (old, Oil) and foreign stocks.

My crystal ball broek a couple years ago, so I am taking positions on both sides of the inflation/deflation debate. If deflation prevails, cash is king. If inflaiton prevails, property and commodities will hold their value.

The only problem with this approach is that no matter what I will be partly wrong. But, since I realize I have been wrong before, it’s the best approach for me.

[(former)FormerSanDiegan]

If your cash is earmarked for an eventual real estate purchase the only thing that matters for that cash is the relative value of real estate.
As long as real estate does not appreciate signficantly, you are fine.

Now, as for cash above and beyond what you have earmarked for real estate, that is another issue.

Personally, I like to diversify, aiming towards bout 35% of my assets in cash, 20% in property and 35% in US stocks. The remainder is scattered among commodities (old, Oil) and foreign stocks.

My crystal ball broek a couple years ago, so I am taking positions on both sides of the inflation/deflation debate. If deflation prevails, cash is king. If inflaiton prevails, property and commodities will hold their value.

The only problem with this approach is that no matter what I will be partly wrong. But, since I realize I have been wrong before, it’s the best approach for me.

[(former)FormerSanDiegan]

If your cash is earmarked for an eventual real estate purchase the only thing that matters for that cash is the relative value of real estate.
As long as real estate does not appreciate signficantly, you are fine.

Now, as for cash above and beyond what you have earmarked for real estate, that is another issue.

Personally, I like to diversify, aiming towards bout 35% of my assets in cash, 20% in property and 35% in US stocks. The remainder is scattered among commodities (old, Oil) and foreign stocks.

My crystal ball broek a couple years ago, so I am taking positions on both sides of the inflation/deflation debate. If deflation prevails, cash is king. If inflaiton prevails, property and commodities will hold their value.

The only problem with this approach is that no matter what I will be partly wrong. But, since I realize I have been wrong before, it’s the best approach for me.

[(former)FormerSanDiegan]

If your cash is earmarked for an eventual real estate purchase the only thing that matters for that cash is the relative value of real estate.
As long as real estate does not appreciate signficantly, you are fine.

Now, as for cash above and beyond what you have earmarked for real estate, that is another issue.

Personally, I like to diversify, aiming towards bout 35% of my assets in cash, 20% in property and 35% in US stocks. The remainder is scattered among commodities (old, Oil) and foreign stocks.

My crystal ball broek a couple years ago, so I am taking positions on both sides of the inflation/deflation debate. If deflation prevails, cash is king. If inflaiton prevails, property and commodities will hold their value.

The only problem with this approach is that no matter what I will be partly wrong. But, since I realize I have been wrong before, it’s the best approach for me.

[(former)FormerSanDiegan]

If your cash is earmarked for an eventual real estate purchase the only thing that matters for that cash is the relative value of real estate.
As long as real estate does not appreciate signficantly, you are fine.

Now, as for cash above and beyond what you have earmarked for real estate, that is another issue.

Personally, I like to diversify, aiming towards bout 35% of my assets in cash, 20% in property and 35% in US stocks. The remainder is scattered among commodities (old, Oil) and foreign stocks.

My crystal ball broek a couple years ago, so I am taking positions on both sides of the inflation/deflation debate. If deflation prevails, cash is king. If inflaiton prevails, property and commodities will hold their value.

The only problem with this approach is that no matter what I will be partly wrong. But, since I realize I have been wrong before, it’s the best approach for me.

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[permabear]

Gold is a good hedge in either deflation or inflation:

http://dailyreckoning.com/gold-and-deflation-2/

The liquid, easy hedge is to buy the GLD ETF. Consider SLV (silver) as well. Both are going up-up-up so you may want to consider waiting for a pullback.

Some people will argue that physical gold is your only real hedge, as in the face of a stock market collapse, the ETF’s could decouple from the spot price of gold/silver and lose value. But, we’re talking massive collapse, like get your guns and canned foods. In all other cases, the ETF’s should track the spot price of gold/silver reasonably well.

http://seekingalpha.com/article/228517-gold-why-and-how-im-buying-right-now

[Author]

Posts