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

To: Graham Osborn who wrote (56816)	2/2/2016 6:43:28 PM
From: E_K_S	Respond to of 78774

This is the case where 'cash' may not really be cash. Could those securities be non-US treasury bills? Wonder if that money is parked at one of those banks that have negative interest rates. If you dig deeper and find out what the securities consist of, how secure are they (who know if they can be hypothicated) and under what terms. My concern is if they are used as collateral for loans, then they are hypothicated and in some Black Swan event could see those securities vanish "poof". That's not cash. Buyer beware especially if some intermediary holds control (you have to look at the hypothication contract and terms). Cash is not always cash. EKS