In cash, now what?
Terry,
I am recently retired and right before this black swan event cut most risk assets and am sitting on a pile of cash. My question is this: since markets are being hammered and bonds are under extreme stress and might crack how does one sitting in cash plan a sensible strategy to invest back into a market that is explosively volatile? I know going to cash is not a recommended move but I saw this coming and may have overreacted but giving the unprecedented events unfolding it now looks more then prudent. The only loss I am experiencing is on one long term corporate bond that because of bond market credit stress is down NAV but eventually will come back. I can always take the interest and hold that bond until maturity if necessary.
So where to go from here to allocate funds smartly. Thanks in advance,
Terry Says
Don’t go anywhere!! Please don’t try to pick a “bottom”. Be patient. You acted brilliantly in hindsight! Don’t blow it now. Sit in cash for a few months. You may miss some upside but you will have ALL your money intact.
Remember the old Savage Truth: “Pigs get fat and Hogs get slaughtered!!!”
