When portfolios are constructed so that they are prepared for crises and manias, the subjective reactions are minimized because the call on
cash during a crisis never gets great enough to force them to move.
Also, private agreements, whether margin or derivative agreements, matter even more, because they can result in a call on
cash during a crisis.
Reduce
cash during the crisis, because stocks are on sale.
Not exact matches
The original idea was to create an electronic form of
cash that could be sent «peer - to - peer» without going through a bank — an objective which was inspired by the banking
crisis during the 2007 - 2008 recession.
Most agree that banks need to have more
cash, or capital, available to ensure they do not default on their obligations when the value of their other assets plunge, as happened
during the recent mortgage
crisis.
Since no one has been heard to suggest that the funds acted out of sheer public - spiritedness
during the
crisis, it seems safe to assume that they were buying on Monday because their managers had spotted bargains, and were selling on Thursday because of chances to
cash in on profits.
Shields said this deal appears more like the ones Buffett was doing
during the financial
crisis by using Berkshire's
cash to help finance other deals.
In recent issues of The McAlvany Intelligence Advisor I've covered the U.S. government's ongoing «War on
Cash»... how our government is trying to take over the Internet with the latest push for «net neutrality»... the risks and advantages of digital currency like bitcoin... how U.S. banks are preparing for «bail - ins»
during the next financial
crisis... how the U.S. government is using Common Core to indoctrinate children so they'll submit to the coming socialist society... and much, much more.
Following the 2008 global financial
crisis, clients were forced to review their banking relationships based on the support they received
during the
crisis, says Isaac Thomas, senior vice president and head of
cash management for ADCB.
I still see people sitting on huge sums of
cash after bailing out of the markets
during the financial
crisis of 2008 — 09.
They have more
cash on hand than many lenders because they weren't crushed in the way banks were
during the home - mortgage
crisis.
To underscore his point, Taleb points to great American families like the Kennedys who had
cash on hand
during crises and snapped up assets
during some of the darkest days of the U.S. economy, making a fortune in the process.
During the 2008 financial
crisis, Buffett reluctantly sold Johnson & Johnson shares to raise
cash to invest in Goldman Sachs, GE and other struggling companies.
Remember, Buffett view
cash as an option, because of what he can buy with it
during a
crisis.
In fact, I often contemplate whether my strategy shouldn't be simply to remain in
cash except
during periods of severe economic upheaval (like the 2008/09 liquidity
crisis) when funds would be invested, then slowly liquidated over the ensuing recovery.
DHT's free
cash flow yield2 at 23 % is more than quadruple the mean of its comparable companies, who average a 5.3 % dividend yield and who all currently pay dividends, including those who previously eliminated their dividend
during the
crisis.
During Argentina's currency
crisis, the country became more of
cash based society, so you should certainly carry
cash just in case you need to make a purchase from a merchant that doesn't accept credit cards.
Private investment firms snapped up a ton of cheap homes
during the foreclosure
crisis — at one point more than one in three California homes was being purchased with all -
cash.