By: Steve Smith
There is a pervasive sense that one must be either be bullish or bearish. But, a legitimate third choice is cash.
I’m not suggesting shoving money under your mattress. But, with the recent market decline, and increased volatility, moving to the sidelines might make the most sense.
There has been debate as to whether cash could even be considered an asset class, which strikes me as ridiculous — given its very definition, an asset relies on the notion that it can be converted into some form of currency, aka cash.
I think the misrepresentation stems from when we let the brokers, stock, real estate, insurance etc, confuse the idea of investing or ability to trade, with an asset.
After all, what provides a better mark-to-market and more liquidity than cash?
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