Posted on 11/23/2011 12:20:49 PM PST by bruinbirdman
Cash is the best-selling investment sector for October as investors shun stock markets.
Cash saw the largest inflows of all the investment sectors last month, as fear over the eurozone crisis caused cautious investors to shun the stock market.
Online investment platform Fidelity Fundsnetwork revealed that its best selling sector for the month of October was the UK Money Market and the best selling fund its own Cash fund.
More than £26.7m was put into cash last month – with investors sheltering £12.9m directly through the platform. The second most popular sector was the Cautious Managed sector, revealing that even those investors actively investing are cautious.
Of the £26m invested in the Cautious Managed sector, £25m was invested by financial advisers.
Investors put £11.2m into the Cash fund in October, which spreads investors' cash across a range of deposit accounts from developed market banks and financial institutions. It has returned just 0.3pc over the past 12 months, though has an annualised return since launch of 3.34pc
(Excerpt) Read more at telegraph.co.uk ...
And so it finally begins. I wonder how long it will be until bank runs hop over the Atlantic Ocean? Probably a matter of weeks. Stock up people.`
Less than that I think. There's a real sh**storm on the horizon.
People would be nuts to invest in Eurtopian debt
maybe the EU should order the citizens to buy bonds?
/sarcasm
“maybe the EU should order the citizens to buy bonds?”
Or, the 9th circuit court could interpret the ObamaCare mandate as including mandate for all Americans to buy an Italian or Greek government bond. We have a living constitution. Why not a living Obamacare bill?
lol.
true
It won’t be bank runs, but riots.
Yep. Time to hold cash (in your house, not at the bank) and gold until this sorts itself out.
"Bank holidays" may come before the Holidays.
They will close the banks almost immediately, Argentina style, with strict withdrawal limits.
Coming to a banking center near us soon.
Done.
And their fund managers are sending their money to safety in the US dollar. [More than a little irony and sarcasm there.]
Best I can tell is-— Nations call in currencies and issue new ones during an inflation crisis. Cash under your mattress is a bad idea in such a situation. You will get ripped off when it comes to exchanging your wads of old currency for new currency.
During a deflation crisis it is great to have most of your money in cash, green Federal Reserve Notes and hold them in house. People who did this in the 1930s Depression were way ahead of neighbors who lost their money during bank runs. Their money evaporated as banks defaulted. These days most US Dollars are just electronic blips on hard drives. This is how we keep score. Many of them can evaporate during a deflation crisis with bank runs. But however much we detest the Federal Reserve, their green paper currency will still be accepted and would actually rise greatly in value due to so many electronic blip dollars disappearing forever.
The recent Argentina economic crisis were inflationary and with new currencies being put into circulation by the Gov’t. I think that was the situation.
And FDIC insurance can replenish members reserves.
But there are non-FDIC banks, brokers, etc where deposits are low man on the bankrupt institution's totem pole.
I'm thinking individual accounts at MF Global.
yitbos
MFGlobal defaulted and had a bank run. Clients may get back 50 cents on the dollar
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