We're in a rare moment in history where cash is king. That may sound like a cliche, but I think the 4% to 5% returns you can get in a money market account are very attractive compared to the risk you take by staying in stocks. My prediction is that the Standard & Poor's 500 could fall at least another 10% from here. I think the economy is weakening and the crisis in the credit markets will worsen from here.
As I explain in this video, I think this is not the time for a buy-and-hold strategy. But if you must stay in stocks, look at more defensive sectors like food, beverage and healthcare. Gold is another sector that could potentially provide a safe haven in the tough months to come.
Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle.
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Reader Comments (Page 1 of 1)
9-07-2007 @ 7:59PM
russ said...
The stock market will survive anything in today's global scenario.The question is "Will you be there?". Ideally, you will not panic and insure that there is enough cash to hold you over 3 to 5 years. As to the stock decisions,trust your proven fund manager with 30/40 year good history and wait. The fortunes lost will be won by those who have the stomach and cash to endure.