Tuesday, December 20, 2011

Why saving money now is the best policy?

Why is it very important to raise cash in 2012?

"Because in the next 12 to 18 months, we can have so much discounted value in equities, bonds... dislocation that could be the best 18 to 20 months in our lives." - Steen Jakobsen, chief economist at Saxo Bank (Tan Teng Boo has the same view, 19/8 post)

His strategy: Have 60 - 70% in cash now, and wait for S&P to break 1,000. Then, over the following 6 to 12 months, invest 5% to 10% every month, once a month.

So what does that mean for now? Yes, go out there and raise lots of of cash, because the best investment opportunities are coming soon.

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