The Myth of Moving Cash Off the Sidelines

08.12.2016 • Investing

By Vern Gowdie – The Daily Reckoning (Australia) –

Can you fathom $50 trillion in cash?

Bill Gates is worth US$70 billion…which in itself is hard to comprehend.

Therefore, $50,000 billion (that’s another way of saying $50 trillion) is a mind-blowing amount of money.

What could you do with that sort of money?

According to a Business Insider article, ‘$50 trillion of cash on the sidelines could be good news for stocks and gold’, published on 5 November 2016:

‘What Will It Take to Move Cash Off the Sidelines?

‘The key question of course is what it will take to get this $50 trillion back in the game again. That much money would boost the financial markets a lot if it were invested. But what will it take to tempt conservative investors to deploy their cash?’
Imagine that amount of cash — or even half of it — unleashed on the markets? What impact on asset values would that have?

Bet you’re thinking that it would have a ‘huge impact’.

Not so fast. Let’s peel back a layer or two.

What constitutes cash?

Money in your wallet or purse? In the bank? Term deposits?

It’s not quite that simple.

There are four official measures of ‘cash’.

Read more here.

Related Posts

Comments are closed.

« »