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Showing posts from March, 2014

Why Hiding Cash at Home is a Huge Mistake

By Jim Wang

How much cash do you have hidden around your home?

If the answer is more than $100, then you have too much cash in your house.

We all keep a little money on hand for those rare occasions -- like the times you need cash because the neighborhood kid offers to shovel your driveway or mow your lawn. You want to help the enterprising young child but don't want the hassle of driving to an ATM, so you keep some cash around the house. But if you're hiding money in your home because you don't feel it's safe in a bank, you're making a huge mistake.
During the recession, when everyone was panicking because banks were failing, lots of people decided their cash was safer in their home and out of the bank. In reality, that's not true. Here's why:

1. You aren't earning interest on your money.

The best financial reason for not leaving cash at home is that you don't earn any interest on your savings. The interest from a bank may not seem …

Warning: Stocks Will Collapse by 50% in 2014

It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

Unfortunately Spitznagel isn’t alone.

“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”

Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”

Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also…