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

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