Where To STASH Your CASH - Under The MATTRESS Or In The STOCK MARKET? No Mention of GOLD or SILVER

When stock markets become volatile, investors get nervous. In many cases, this prompts them to take money out of the market and keep it in cash. Cash can be seen, felt and spent at will, and having money on hand makes many people feel more secure. But how safe is it really? Read on to find out whether your money is safer in the market or under your mattress.

All Hail Cash?
There are definitely some benefits to holding cash. When the stock market is in free fall, holding cash helps you avoid further losses. Even if the stock market doesn't fall on a particular day, there is always the potential that it could have fallen. This possibility is known as systematic risk, and it can be completely avoided by holding cash. Cash is also psychologically soothing. During troubled times, you can see and touch cash. Unlike the rapidly dwindling balance in your brokerage account, cash will still be in your pocket or in your bank account in the morning.

However, while moving to cash might feel good mentally and help you avoid short-term stock market volatility,
At this point, it's a paper loss. A turnaround in the market can put you right back to breakeven and maybe even put a profit in your pocket. They go from being paper losses to being real losses with no hope of recovery. While paper losses don't feel good, long-term investors accept that the stock market rises and falls.

Time Is Money When you sell your stocks and put your money in cash, odds are that you will eventually reinvest in the stock market. "when should you make this move?" Trying to choose the right time to get in or out of the stock market is referred to as market timing. If you were unable to successfully predict the market's peak and sell, it is highly unlikely that you'll be any better at predicting its bottom and buying in just before it rises.

SEE: Market Timing Fails As A Money Maker Common Sense Is King Buy and Hold on Tight high low Companies are in business to make money. They have a vested interest in profitability. Investing in equities should be a long-term endeavor, and the long term favors those who stay invested.
Serious investors understand that the markets are no place for the faint of heart. Of course, with private pension plans disappearing and the future of Social Security in question, many of us have no other choice. future needs, and develop a plan to help your portfolio get there. Find an asset allocation strategy that meets your needs. Monitor your investments. Rebalance your portfolio to correspond with market conditions, making sure to maintain your desired mix of investments. Once you reach your goal, move your assets out of equities and into less volatile investments. While the process can be nerve-wracking, approaching it strategically can help you keep your savings plan on track, despite market volatility. It was the bank tax heard round the world, a blundering blast of dumb policy that rocked global financial markets, at least temporarily.

If people are reluctant to increase their net worth and put money in the bank or the stock market, at the very least, they should focus on the other component of their balance sheets and pay down debt.

I feel strongly about an impending wealth collapse, which will hit retirees particularly hard because, right now, the Federal Reserve is forcing this traditionally conservative age group to alter their asset allocation and take on an excessive amount of portfolio risk in order to maintain a basic lifestyle. Retirees who used to walk around town comparing FDIC insured CD rates are now being pushed into bond funds and dividend paying equities in order to generate income, many of whom don't realize the ramifications that a 20% market correction can have on a portfolio of dividend paying stocks, or that a rise in interest rates can have on a bond fund. short term bonds