Jim Cramer is still a douchebag and there seems to be no end to the free fall on Wall Street
Below is an article from the New York Times that presents of why in certain situations, cash is not always king.
Switching to Cash May Feel Safe, but Risks Remain
By fleeing for the comfort of safe and insured, however, investors with a time horizon beyond a few years may be doing real damage to their long-term finances. If you’re tempted to make a big move to cash right now, you’re doing something called market timing. It’s an implied statement that you’ve figured out the right moment to get out of stocks — and will also know the right time to get back in.
So let’s dispense with the first part straightaway. The right time to move out of stocks was a year or so ago, before various stock indexes the world over fell by one-third or more.
If you missed that opportunity, you’re hardly alone.
But if you sell now, you’ll be locking in your losses. And once you’re in cash, there isn’t much upside. In fact, with interest rates low, you’re likely to lose money in cash, because inflation will probably eat up the after-tax returns you earn from a savings or money-market account.
So you can suck it Cramer.
Unless you have been hiding in between Rosie O'Donnell's many chins, you know that our economy is dropping faster than Judith Regan's prospects for publishing. Want some sage advice? I have none. I had no insider knowledge, no experience, no ideas on what to do.
Perhaps that is the best course of action. When doubt don't. Let the market have its temper tantrum. Let get it all out. Whatever cash you have, you might want to put it somewhere safe and secure. Where? I have no f**king clue. I do know that this is a bad idea.
One match and that guy's life savings goes up in smoke.
This reminds me of a story about Koreans doing business. There was this Korean owned a liquor store that was quite profitable but was no Zachy's. This was the type of place that bullet proof glass was installed around the cashier which indicates what type of clientèle they served.
There was a Korean couple interested in buying the business. So the owners went to their home and they began to negotiate a price. After settling on a price, the buyers told them to wait in their living room. The sellers were of course expecting to get some type of check for the business. Instead the couple returned with a paper grocery bag full of American tender. I don't think it was even double bagged.
This is one of the unfortunate reasons why home invasions are considered a popular illegal fund raising activity of choice for Asian gangs since they know that a lot of Asians, particularly ones who are either new or have not acclimated to America, have a ton of cash stored in their homes.
There has to be a safer place folks.