Don’t Panic: 6 Ways to Profit in a Volatile Market - 8/21

Tip No. 2 – Cash is King!

Cash is king.

Even billionaire Ray Dalio will tell you that.  

For quite some time, he’d tell you cash is trash.  However, he did a big U-turn.  

“At existing interest rates and with the Fed shrinking the balance sheet, it is now about neutral—neither a very good or very bad deal. In other words, the short-term interest rate is now about right.”

Legendary investor Warren Buffett, whose company  outperformed markets for decades, has seen his fair share of recessions. He also has the experience many other investors may lack. For example, he has always advised investors to have a long-term outlook, because short-term volatility is typical.  Better, In fact, in a 2016 annual shareholder meeting, the billionaire suggested “During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted,” as quoted by MarketWatch.