We are all invited to the party !
We are all invited to this financial crises party, regardless if you want to attend or not. If you are alive, you attend by default.
Everyone will pay a high price, either you pay today, or next month, next year or 5 years out.
But pay you will; and it will cost everyone big money, no one will escape the payments to this party.
The only question is, What will you get for your money at the end of the party?
You can pay today and buy stock and accept the risk of a 15% stock market decline.
You pay next month by delaying buying stock today; and you will probably pay a lot higher price.
You can keep your money in the bank and you get 1% interest and negative real rate of return, your capital will slowly dwindle away. As inflation increases and rates remain negative you will be forced to buy real hard assets in high competition with other capital at higher prices.
You can buy short term 2 year bonds and miss the opportunity to buy great companies, but you will loose on inflation. This is the equivalent of sticking your head in the sand. Your delaying the fact that you have to make real hard decisions to buy assets that protect your capital on a long term basis.
You can give up all hope and buy 10 year bonds and if this be the case; I suggest you attend church because your going to need prayer after Mr. inflation returns your capital.
So at this party you can sit smug and comfortable on the side line holding on to your cash, but you will be paying a high price for that comfortable feeling; do not fool your self that such comfort is free, its not free by any means. In fact history shows such people pay the highest price at the party, they end up leaving with no financial assets and inflation ensures they have limited purchasing power.
So we are all invited to this party.
I intend to leave this party owning great assets that I will be buying today at fire sale prices.