Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.Sound reasonable? I don't know if any of you have been reading the Elliott Wave articles to the right of my Blogs, but in case you missed this one table that turns WB on his behind faster then a Gordie Howe elbow, here it is:
Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
Cash is what Buffett calls, "a terrible long term asset, one that pays virtually nothing and is certain to depreciate in value."
Except for the past eight years? Except in Bear Markets? Except in Grand Supercycle Bear Markets? Then he insults The Great One by suggesting that buying falling stocks blindly is akin to prescience on the ice.
Prices are coming down across all markets. A comment in the previous blog asked me, "if I was nibbling on anything long here." I don't nibble. Nor do I buy stocks, gold, oil, corn, or anything in free fall. Triangle Trading from Market Club is holding Short here. Elliott Wave structure requires a new low in the DJI (for this move) before any tradable rally can be identified.
As for the slandered Gretsky, I shall apologize to Wayne personally, or at least through his actress wife, Janet Jones:That is as soon as I spot where she sits at the games. These are some clues, if anyone catches a Phoenix game locally.