DJ:" bondz "
>Dont hold any. The closest I was to bonds in my present life was holding Bertelsmann debentures few years ago. And I am very limited in my experience with stox. It's just LEAPs for me...
...composition of one successful, interesting Bear Fund portfolio over here is 60% Bondz and 30% SPX index in-the-money PUTs. FWIW, I thought this allocation strategy might be fun to explore.
>So how does your comment about "cash being destroyed" read now after seeing you meant US $ losing against foreign currencies? The cash does not get destroyed...
...holding "cash" = USD currency does not shelter one from experiencing decay of kapital when inflation exists or, USD value declines relative to JYen/euro. Income received from USD MoneyMarket Funds may, in fact be illusory kapital gain.
The "cash" kapital is being "destroyed" - in the sense that its buying power is being diminished - along with stocks, bonds and real estate assets. Converting these investment assets to "cash" is not only taking a bet that USD will hold value relative to JYen/euros, but also a bet that "cash" = currency kapital will decay less than stocks, bonds and real estate kapital. Cash does not necessarily prevent asset-base decay, it is an attempt to increase apparent liquidity.
Christ! you know this. An extreme example but, think wheelbarrows full of "cash" to buy groceries, circa 1920's.
To convince me otherwise, you must prove that "cash" has no risk... ok, your turn (^_^)
>Europe looks good in 2k. But I know you guys dont feel comfortable about this place. Europe never accepted basic cornerstones of western civilization, like automatic car gears or air condition.
Too bad.
... (!)
vous me blessez, cher ami - vraiment.
-Steve |
