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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (43846)8/10/2011 5:11:43 PM
From: Difco  Read Replies (1) | Respond to of 78478
 
I didn't think of it this way - good point...

I think you suggest that cash should only be considered medium between asset classes and is itself zero value asset class (correct me if I'm understanding it wrong) - if not zero, it definitely has destructive value. Of course other assets could be more destructive, but the assumption is that the market always provides a better opportunity . Maybe the only exceptions would be at the market extremes (lows/highs), but that's timing the market. But how could we preserve capital if we are not aware of those extremes? Should I ever keep cash?