Cash is way more popular than stocks or bonds

cnn money ^ | 2-5-2016 | Matt Egan

[Citizen Zed]

When investors are nervous, they flee risky assets like stocks for the safety of cash.

That's exactly what's been happening lately. Since July 1, cash and money market funds have easily been the world's most popular asset class, attracting $208 billion of inflows, according to Bank of America Merrill Lynch.

By comparison, investors have poured a relatively paltry $7 billion into stocks and yanked $46 billion from bonds.

It's the latest evidence of the jitters ripping through financial markets amid crashing oil prices, a slowdown in China and soft U.S. economic activity.

"The individual investor is scared by the volatility. They don't want to take risk," said Ed Yardeni, president of investment advisory Yardeni Research.

[Citizen Zed]

You can buy food with cash. That's my plan.

[Smokin' Joe]

Yep. But it is a buying opportunity if you’re careful, too.

[grania]

The money going into cash is staying in cash. There's no velocity to that money. It isn't generating interest income so except for the extremely well off it will never prepare folks for retirement and other future needs.

If there's a situation where a high percentage of those with disposable income feel forced to not spend it, how does the economy ever improve? Isn't the very definition of a middle class dependent on financial confidence? The most disturbing thing about those manipulating the economy either don't know the effects of the stuff they're doing, or even worse, the effects are their goals. Either possibility is damning.

[dp0622]

short the dollar if you know how to.

against the Eur. The eight year party is over.

made some good money this week as resistance levels were busted through on the EUR/USD

[SandwicheGuy]

Don’t you mean short the Euro? The USD is getting stronger.

[Therapsid]

Anyone look at decred?.....and projections for silver?....decred opens on the 8th...

[Therapsid]

Silver breakout?

[dp0622]

This week may have been the beginning of the reversal. eur/usd is at 1.12 from 1.08 at the beginning of the week.

could just be a blip. we shall see.

you can only have weak news come out for so many years, especially when there’s supposed to be a rocking recovery going on

[Flick Lives]

Cash is king.

[Mr Apple]

I agree with your thoughts on silver. I'm thinking now with silver at this low of $14.95 oz [Feb 4] -is a very, very good time to buy bulk silver coins such as the 1 oz American silver eagles, 1 oz Canadian silver mapleleafs or 1 oz Silver Mexican Libertads? I like the long term on silver. And by long term I mean one year or more. There are three coin dealers that I call to get three different quotes when I've bought coins. (ck your local yellow pages) The correct going rate from coin dealers for silver (and gold coins) should be no more then three and a half (3 1/2 percentage over spot) This is what your local coin dealer should be charging. (but to get 3 1/2 percent spot you usually must purchase at least 100 coins -or the percentage could be up to 5% over spot) [the Am. eagle coins have a higher premium, so you could buy the Liberates or ask for the price of the his 1 oz bars ]

[Mr Apple]

fyi my post #10
freepmail me if you want off my ping list

*ignore that ? after Liberated / my error

[doldrumsforgop]

As the Japanese know when banks begin imposing negative interest rates, real estate is a far more attractive place to park your money.

And real estate growth will likely stay ahead of inflation.

[Georgia Girl 2]

We just bought more junk silver.

[Mr Apple]

http://www.freerepublic.com/focus/news/3393089/posts?page=28

[Mr Apple]

And real estate growth will likely stay ahead of inflation.

Exactly right. Real estate has usually -always been safe.
[unless one makes the mistake of buying in a - -flood zone, lol]

[GOPJ]

Thanks for the ping.

[Mr Apple]

I know about junk silver and that’s just as good as buying bullion coins. I’m curious, did you have to present your drivers license for that junk silver deal?

[Mr Apple]

Your welcome my friend.

[Georgia Girl 2]

Junk silver is coins 1964 and earlier. Dimes, quarters, halves and of course silver dollars. And no we don’t show drivers license and neither should you. If somebody asks back them down. Its BS.

[hal ogen]

Better to buy tobacco, booze in small bottles, cheap razors, TP, etc.