Time to Hoard Cash

With the markets expected to plunge today, it is a good time to remind folks of some timeless advice – Hoard Cash.

Markets expect to plunge – link to Yahoo Finance headline

Let’s discuss how you might benefit by hoarding cash – and I’m sure I could give a few examples that you could remember in your own life when you wished you had cash.

1. Perhaps in the past, an opportunity came up in th family to buy a relative’s vacation home or first home for that matter – and it was a screaming deal. You absolutely knew it; it was priced where you knew for certain it would be quite profitable. However, you didn’t have the CASH so you couldn’t do it.

2. A used car – again, maybe someone you knew couldn’t handle a car payment and you could have gotten yourself into a nice car at 40% off market value – again, you knew it was a good deal, a smart purchase, but you didn’t have the cash.

3. Maybe a contractor offered to fix something in your house for a low price or…it really doesn’t matter what – I’m sure in your personal history, a great opportunity popped up and you couldn’t take advantage for lack of cash (in the interest of full disclosure, it happened to me too).

So now we may be entering a period of declining asset values – assets meaning real estate, investments, collectibles, etc. And there may be some super opportunities 1 or 2 years from now. So if that does happen, will you again be wishing you had cash or will you be ready? Investing legend Jim Rogers says he keeps his powder try (hoards) until he sees a pile of money lying there and then goes and picks it up – his analogy for waiting for ridiculous and obvious buying situations before he makes a move. I would consider listening to him – for you who don’t know him, he was George Soros’ partner in the 1970’s and let’s just say, he picked up lots of “piles” back then.

Good hunting!

Chris Grande