Saturday, August 13, 2011

Safe Haven? The Search Is On

The market is volatile, what do we do?

* Gold is not the answer. It is too illiquid and there is not enough of it. It also does nothing except sit in a vault, it generates no income.
* Swiss francs are not the answer, the Swiss National Bank has already intervened to prevent capital inflows.
* The Euro is not the answer because the problems in the United States are the same as those of Europe.
*The dollar is not the answer because the United States can no longer be depended upon to be fiscally or financially responsible.

Cash appears to be the safest bet at the moment. I am heavily invested in equities and am looking for a sensible exit point. As mentioned earlier, my sense is that the Obama administration will be forced to conjure up something amounting to a QE3, that may be the signal to do something.

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