When “Cash Becomes King” . . . .

[Flatlander]

Where does Warren keep his cash? Has he heard of a bail in vs bail out I wonder. 100 billion is more than the mattress could handle. Risks are everywhere. What to do, stay agile, be diversified?

[errolanderson]

Scratching heads as to why 4 am on a Sunday in the dead of winter this keeps you up ?
Are we all that ***ed ??

May depend on where you are located on the planet . . . .

[jazz]

Scratching heads as to why 4 am on a Sunday in the dead of winter this keeps you up ?
Are we all that ***ed ??

Because the US is willing to risk a recession to neuter China once and for all. China is the biggest bubble in the history of mankind and its going to get pricked. The repo markets are probably shoring up that inevitability.

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

See for yourself what china has been doing. Look up their ghost complexes. There are more than 50 of these in the country some the size of cities. They have built an entire economy upon the hope of upscale movement of poor people into the middle consumer class using massive govt funding. Unfortunately they missed econ 101 class about creating inflation along the way. Along with their demographic bomb, china will grow old long before it grows rich.

US is insulating itself from the blast. So is Buffet.

[errolanderson]

Because the US is willing to risk a recession to neuter China once and for all. China is the biggest bubble in the history of mankind and its going to get pricked. The repo markets are probably shoring up that inevitability.

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

See for yourself what china has been doing. Look up their ghost complexes. There are more than 50 of these in the country some the size of cities. They have built an entire economy upon the hope of upscale movement of poor people into the middle consumer class using massive govt funding. Unfortunately they missed econ 101 class about creating inflation along the way. Along with their demographic bomb, china will grow old long before it grows rich.

US is insulating itself from the blast. So is Buffet.

China’s building of ghost cities is effectively their form of QE. They must keep their people working. This is no different than the U.S. printing money like a drunken sailor in the attempt to run ahead of the next financial crisis.

[chuckChuck]

There were many apartment blocks built during the Bakken drilling boom in Williston ND. Many of them are empty now that the boom has slowed down due to lower oil prices. Williston is quieter compared to the heady days of the boom.

[AlbertaFarmer5]

Berkshire Hathaway is now rapidly increasing their cash position . . . now exceeds $100 billion.

Many investment houses scratching-their-head . . . why? The market is doing so well and the U.S. economy is so strong . . . .

So Berkshire Hathaway has effectively doubled down on a losing position that has already been on for far too long, and has underperformed nearly every other fund, and the broader market since it started going to cash. Might be correct this time, but after missing out on the most recent run up, they have a lot of catching up to do.

[errolanderson]

So Berkshire Hathaway has effectively doubled down on a losing position that has already been on for far too long, and has underperformed nearly every other fund, and the broader market since it started going to cash. Might be correct this time, but after missing out on the most recent run up, they have a lot of catching up to do.

Question to ask ourselves . . . Is it better to run with the bulls with a potential of getting caught in the crash or . . . park your money in-wait? Depends on your appetite for risk, financial situation, age etc.

[jazz]

China’s building of ghost cities is effectively their form of QE. They must keep their people working. This is no different than the U.S. printing money like a drunken sailor in the attempt to run ahead of the next financial crisis.

Maybe but consider those differences too. US has expanded rerserve currency and liquidity with its QE program so that money can slosh around to where it's needed even in a recession.

China has put it all into bricks and mortar that has never even been occupied That's illiquid and likely to be stranded capital if they can't get their population to start buying those units and commercial spaces. This is 2008 subprime x 100

Even apts in Williston and McMansions in Florida were bought and occupied for a few yrs.

[malleefarmer]

Zeihan predicts china will renege on this Ph1 deal and then all bets are off after that.

Why is everyone hyping up the deal if this is the case why is the deal even happening if this is the case.

[biglentil]

Question to ask ourselves . . . Is it better to run with the bulls with a potential of getting caught in the crash or . . . park your money in-wait? Depends on your appetite for risk, financial situation, age etc.

A federal reserve note or Candian bank note does not say money on it anywhere.

[jazz]

Why is everyone hyping up the deal if this is the case why is the deal even happening if this is the case.

Its as much a test as it is a deal. Trump finally put something in front of them that has teeth and they cant wiggle out of or buy off democrats with. They will either meet this deal or the tariffs will go on permanent with other measures like banning companies, shutting them out of lending or an out right currency ban.

Carrier fleet sits in the hormuz. With one move, Trump could destroy Iran, NK and China.

US going to take this all the way.

[errolanderson]

According to the American Association of Individual Investors, the average cash balance of investors is now only 14% which nearly matches the lowest cash balance in the last 20 years of 13% (last seen at top of the dot-com bubble).

Cash certainly isn't king of investor mindset right now, until it suddenly is . . . .