Hello Dr. Hunt, you announced once a 360 degree portfolio review, is this coming shortly? I am very curious on this. Thank you for your great work so far, very appreciated.
If the bank(s) you hold your cash in aren't the worst, you should be OK. Government couldn't allow the majority of banks to fail. They would be bailed out with cash. If the bank is one of the weaker ones, then it could fail and not be bailed out.
I hold some of the liquidity in Bitcoins. Why? Because a credit crisis doesn’t affect it in the sense of counterparty risks. And it can well be that the price rises in the crisis. And I can treansport it easily, also while travelling (hard wallet). So that is one part. The other is physical precious metals. And the third is liquidity in bank accounts and short term state debts.
How does the Great Taking and the Japanese reallocation of their balance sheet factor in?
Hello Dr. Hunt, you announced once a 360 degree portfolio review, is this coming shortly? I am very curious on this. Thank you for your great work so far, very appreciated.
You are correct, not referring to Dollars as money. They aren't a long term store of value, so not money.
Dr. Hunt,
I agree with your barbell strategy and that having liquidity in the form of cash, money market [instruments] and short term treasuries would be good.
But what if the bank or intermediary fails? Then I'm just another unsecured creditor.
What would be a better way to hold liquid assets?
For example, would it be advisable to
- hold cash in the form of physical gold that's stored in a vault, which is outside the banking system; and
- register money market instruments and short term treasuries in my own name, rather than having them held in my brokerage account?
Or is there a better solution?
Thank you for your insights.
If the bank(s) you hold your cash in aren't the worst, you should be OK. Government couldn't allow the majority of banks to fail. They would be bailed out with cash. If the bank is one of the weaker ones, then it could fail and not be bailed out.
I hold some of the liquidity in Bitcoins. Why? Because a credit crisis doesn’t affect it in the sense of counterparty risks. And it can well be that the price rises in the crisis. And I can treansport it easily, also while travelling (hard wallet). So that is one part. The other is physical precious metals. And the third is liquidity in bank accounts and short term state debts.