Keep Your Powder Dry

The fact that people love to spend their future earnings is the impetus of the market economy. Getting folks into debt is what making the economy tick. Disguising consumption as investments (a new kitchen, a new car et cetera) is the easiest way to loose money.

There are always three positions to take: sell, buy or sidelines. And in many cases the best ever investment you can make is to do nothing; especially in this never-before-seen recession.

The smartest people I know are out of the market since ‘07, enjoying their risk-free rentals and taking time off from the rate race. Cash is king and might be for the next 3-5 years. Booya!