Here's How Much Cash You Should Hold Right Now
July 13, 2016 at 05:00 AM EDT
Cash isn't the most exciting or dramatic asset you can hold, but, aside from gold itself, there's not much that's more vital or versatile - especially right now. Here's why... First, if you have cash, you can buy those distressed assets that have to be sold by overleveraged owners when they're forced to sell. In this way, when things go wrong, you're a "liquidity provider," much like Warren Buffett who famously made some of the best, most favorable deals of his entire life in the crisis years of 2008 and 2009. Buffett pulled off this coup by being flush with cash when hardly anyone else was. Cash also tends to hold its own against assets that are inflated by high levels of debt, like real estate and stocks are right now. It tends to depreciate against gold, but it will do much better than overpriced financial assets like stocks when the dam breaks. And of course, if things finally get so bad that even CNBC or Barron's admit as much, you can use cash to buy items essential to survival, like food, water, and a complete set of "The X-Files" Blu-ray discs. So I want to show you an unbeatable cash strategy right now. You'll see how much cash to hold at any one time, and just as important, how to hold it; there's more to "cash" than pictures of dead presidents. But in order to get all the advantages that a right-sized cash position offers, you have to understand why the dollar is strong and getting stronger... Tags: market crash To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post Here's How Much Cash You Should Hold Right Now appeared first on Money Morning - We Make Investing Profitable .