Why Keeping Money in This Asset Is a Good Idea

Why Keeping Money in This Asset Is a Good Idea

Posted On December 10, 2018 3:38 pm

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?

By contrast…

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.