Posted on 06/23/2015 6:46:51 PM PDT by Lorianne
It may be time to put money under the mattress. High profile fund managers explain how to prepare for a 'systemic event' ___ Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.
“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.
• Get a round-up of investment ideas sent once a week
The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.
His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.
He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.
He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10. The current woes of Greece, which may crash out of the euro, already has many market watchers concerned.
(Excerpt) Read more at telegraph.co.uk ...
How does one put $4B under the mattress?
Perhaps if it’s in Pounds Sterling it’s an easier fit.
Put cash under the mattress and miss out on 00.17% interest? Are you nuts or something?
Food and ammo makes much more sense. Come the crash, cash won’t get you anything.
bump
LOL! I'm thinking of buying a new car and will likely write a check instead of financing it - even 2.5% interest on the loan dwarfs what the money is earning in the bank accounts.
:)
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.