Where is all of the cash? Who is holding all of the money and where are they keeping it? Is all in bonds or cash accounts? When the investors are selling their stocks, funds and commodities, where are are they putting their money? In banks, only to fail there?
All banks will not fail. Most won’t in fact.
Yen, Swiss francs, and dollars in that order. The rise in Yen is at least partly due to carry trade unwinds. For a decade or so, people have been borrowing cheap yen to buy stuff elsewhere and needed to sell their yen to do that. It has driven down the yen artificially (with the willingness of the Japanese to prop up their exports). Now people are forced to buy those yen back.
To a lesser extent the dollar and SwFranc rallies are the same. The dollar is also effectively being short squeezed.
“Where is all of the cash? Who is holding all of the money and where are they keeping it? Is all in bonds or cash accounts? When the investors are selling their stocks, funds and commodities, where are are they putting their money? In banks, only to fail there?”
Miraculously, I happen to be in cash now through the sale of a multi-family building in which I invested 12 years ago. Made a nice profit, which I intend to protect by doing a 1031 exchange - which defers the cap gains tax indefinitely.
That means I’ll be going back into real estate. I’m looking at a state leased office building in Midwest, as well as a single-tenant (FedEx) warehouse on the West Coast.
Decent returns on both, and the tenants appear to be secure.
The QJBY bank is holdig all the cash.
Well year after year of sending a trillion dollars to foreign countries for trade deficits and nation building, cash is done gone with the world winds from Washington.
Recipe for recovery.
MAKE HERE, START NOW.
NATION BUILD HERE, START NOW.