cash
a while ago i read an article about a noted economist. i know he's noted cause he got noted on the internet. heh. okay, so his basic point was that the economy is gonna crash. yeah maybe. because of the stimulus. yeah maybe. and anyone with anything other than a 100% cash position is an idiot. um, no. i'm thinking this guy wants to buy your stock for the cheap. i explain. if the market gets flooded with cash, then the exchange rate between the cash and everything else has to adjust. for example, if you double the amount of cash in the world and change nothing else, the price of everything doubles. inflation. dilution. whatever you want to call it. which means, everyone who holds cash will have their buying power halved. so yeah, i think our noted economist and all his fellow kool aid drinkers should hold as much cash as possible. i happen to agree with him that the stimulus will cause inflation. however, his investment recommendation is completely wrong. you want to own real things. things that store value during inflation. like buildings, businesses, gold.