Marketing Commentary- Q1 2009
What’s Been Happening? In recent months, capital has seemed to be on strike. Bank failures, forced selling and changing government policy have sent a number of investors to the sidelines, waiting for better times. Through the meltdown, cash has been a refuge. We don’t expect this to persist given the velocity of government borrowing and printing of money. In the event of inflation, the real loss of value in a cash account is no different from a price drop in a stock portfolio. Holding cash also results in opportunities lost when the markets recover. The S&P 500 index commenced a 21%...
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