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MOVE TO CASH? U MUST BE KIDDING.

September 3, 2014  Go to “Core Portfolio” for current holdings.  I have been in this game for many, many years and read numerous articles and posts by financial advisors.  I am appalled at what I am seeing.  A lot of them are suggesting that clients have 40% of their portfolio in cash.  Cash???  Why??

OMG.  If you are a reader of this blog and your financial planner (assuming you have one) gives you this advice, you go out tomorrow and fire them.

I’m serious.  The Federal Reserve is printing money hand over fist and also almost guaranteeing low interest rates.  Who wants to buy Treasuries at 2.3% when they can get good returns in the stock market.  And the cheap money encourages companies to buy back their stock, reducing the float, thereby increasing stock prices.

You need to collect dividends while they literally force the stock markets upward.  This profound situation is not going to last forever.  One of these days, this thing is going to blow up.  But not right now.

As I have said many times, this market will crash.  We just don’t know when.  The markets are inflated.  Everybody knows it.  But why sit in zero interest CDs and other crap. I recommend you stay invested.

In some respects I really don”t blame the planners.  If people don’t have the drive to get educated they can blame nobody but themself.

The goal of this blog is to provide investing information so that you can get educated and learn how to invest your money on your own.  And not rely on some stupid broker or moron at the local bank.  I hope I am helping.

 

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