No. of Recommendations: 1
One of the problems with a large cash position is that it is in effect a large bet on the US dollar and to hear some people talk the dollar will soon fall dramatically in value , of course some of these people have been saying this for 40 years. : ) For diversification you might want to consider holding some of your cash accounts in other currencies.

I don’t have a clue if hunkering down is the right move or not but if you want to there are a few alternatives to going to cash. This would be especially important to consider if you will be selling investments in taxable accounts that will cause lots of taxes to be due.

Some of the alternatives would be to use options to hedge your positions or to put part of your portfolios into bear mutual funds

Greg
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement