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|User Info||Joe Granville: DOW to drop 1000 points per Quarter in 2012; entered at 2012-03-19 13:57:03|
Registered: 2008-01-20 Northern CA
Riddle me this then, TF'ers: Selling stock is a preference for cash and a depreferencing for risk. If you knew that the central banks were firmly committed to flooding the system with money and firming committed to creating the manifesting proof of their expertise via a rising market, what would make you (generic you) prefer cash to participating in rising stocks? |
Cash has a certain non-risk in a very low inflation environment, and, of course it has an opportunity cost. But cash, now, bears MFGlobal risk outside of an FDIC-insured account of *any* sort and bears loss-of-purchasing power risk therein or in any form.
So what would drive the masses to cash? Anecdotally, the retail investor is largely in cash because of fear generated by the flash crash and by the general decline 2008-2009. Aren't those folks the ones who always do the wrong thing?