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'It's Time To Put Cash Under The Mattress', Say Experts

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posted on Jun, 20 2015 @ 10:13 AM
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I couldn't find a Financial forum, so I am posting here.
In addition to sharing this warning/advice with my fellow ATS'ers, I'm hoping to keep this article 'on record' for a timely discussion with my own investment manager.

Many in finance and investing sense that something big and bad is coming and the world economy may be about to take a huge hit. Others, such as myself, fear this and are looking to protect our investments and savings as best we can during a possible onslaught of global financial tribulation.
Hopefully, this path may change and fiscal disaster may be avoided for millions. Nevertheless, I share this recent article in good faith and in the hopes that it may be illuminating, if not useful.



'It's time to hold physical cash,' says one of Britain's most senior fund managers
It may be time to money under the mattress. High profile fund managers explain how to prepare for a 'systemic event'





The manager of one of Britain’s biggest bond funds has urged investors to keep cash under the mattress.
Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.

“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.
The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

His concern is that global debt – particularly mortgage debt – has been pumped up to record levels, made possible by exceptionally low interest rates that could soon end, and he is unsure how well banks could cope with the shocks that may await.
He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.

He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10. The current woes of Greece, which may crash out of the euro, already has many market watchers concerned.
Mr Spreadbury's views are timely, aside from Greece. A growing number of professional investors (see comment, right) and commentators are expressing unease about what happens next.

The prices of nearly all assets – property, shares, bonds – have been rising for years.
House prices have risen by 26pc since the start of 2009, and by 68pc in London. The FTSE 100 is up by 75pc.

Although it feels counter-intuitive, this trend of rising prices should continue if economies remain weak, because it gives central banks licence to keep rates low and to carry on with their “quantitative easing” programmes.
Conversely, if the economy does pick up and interest rates need to rise, the act of doing so is likely to stall the economy and force them to be reduced again. Once more, demand for those mainstream assets would be rekindled and the asset boom continues.

But then there is the shock event. Daily Telegraph columnist Jeremy Warner also captured some of the concerns this week when he wrote that the trigger for an “inevitable correction” could come from “a clear blue sky – a completely unanticipated event”.

How are fund managers preparing for this gloomy possibility?
Mr Spreadbury sticks to bonds because of the remit of his funds. Within that world, he said a shock to the system would cause a flight to safety and the price of British government bonds, or gilts, would rise sharply. He also holds bonds of companies that would be most protected in times of turmoil – water companies, power network operators – and those where the bonds are secured on a solid asset, such as land or buildings.

Examples include Center Parcs and Intu, which owns shopping centres.
Marcus Brookes, another well regarded fund manager who looks after billions of pounds worth of investments, is less constrained in where he invests, because of the different remit of his funds. Schroder Multi-Manager Diversity, for example, can pick and choose between assets.

Mr Brookes said the probability of a major shock event was small but even he holds 29pc of the Diversity portfolio in cash, a huge proportion compared with most funds. This decision is due to his concern that bonds are overvalued and may fall. He aims to deliver returns of 4pc above inflation so can’t afford to put too much in assets that he believes will lose money.
“The problem is that people are struggling to work out how to diversify if QE programmes stop,” he said.
Mr Spreadbury added: “We have rock-bottom rates and QE is still going on – this is all experimental policy and means we are in uncharted territory.

“The message is diversification. Think about holding other assets. That could mean precious metals, it could mean physical currencies.”

www.telegraph.co.uk... ml




posted on Jun, 20 2015 @ 10:27 AM
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Those that have their retirement based on a 401k can figure on working until they die.



posted on Jun, 20 2015 @ 10:37 AM
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originally posted by: butcherguy
Those that have their retirement based on a 401k can figure on working until they die.

I'd rather spend the rest of my life in Jail. Seems like a better option.



posted on Jun, 20 2015 @ 10:38 AM
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originally posted by: Soloprotocol

originally posted by: butcherguy
Those that have their retirement based on a 401k can figure on working until they die.

I'd rather spend the rest of my life in Jail. Seems like a better option.


Trust me you don't want to be in any kind of correctional facility when SHTF.



posted on Jun, 20 2015 @ 10:40 AM
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a reply to: IAMTAT

Darn it. You just told the whole world you'll be hiding cash in your house.


The world of finance is the worst fear monger for circulating doom porn. Every day it is said an asteroid will hit. I think the money world thrives on its own insecurity.

For me life is one perpetual austerity measure, lol. I never see enough of the green back to pay it much mind. As for the greedy financiers I'll not be commiserating too much if they have a bad day, month or year!
edit on 20-6-2015 by Revolution9 because: (no reason given)



posted on Jun, 20 2015 @ 11:25 AM
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a reply to: IAMTAT
I just hope those who don't have much to begin with suffer the least if this happens. Though I guess wages would crash. Three cheers for minimalism!



posted on Jun, 20 2015 @ 11:58 AM
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originally posted by: j1x1n

originally posted by: Soloprotocol

originally posted by: butcherguy
Those that have their retirement based on a 401k can figure on working until they die.

I'd rather spend the rest of my life in Jail. Seems like a better option.


Trust me you don't want to be in any kind of correctional facility when SHTF.

The way i see it. Working until you die is just a situation where you are held hostage for the rest of your life...you know, Like Jail. Only in Jail you dont need to worry about where you're getting three meals a day, Free electricity, heating, showers, dental and medical, Library, possibility of getting a degree and a roof over your head.



posted on Jun, 20 2015 @ 12:19 PM
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originally posted by: Soloprotocol

originally posted by: j1x1n

originally posted by: Soloprotocol

originally posted by: butcherguy
Those that have their retirement based on a 401k can figure on working until they die.

I'd rather spend the rest of my life in Jail. Seems like a better option.


Trust me you don't want to be in any kind of correctional facility when SHTF.

The way i see it. Working until you die is just a situation where you are held hostage for the rest of your life...you know, Like Jail. Only in Jail you dont need to worry about where you're getting three meals a day, Free electricity, heating, showers, dental and medical, Library, possibility of getting a degree and a roof over your head.
I spent 2 weeks in the county jail for contempt of court. The food was disgusting I didn't eat anything but 3 cookies a day the entire time I was in there. I'd rather be broke and freezing living under a freeway over pass then spend my time in jail.



posted on Jun, 20 2015 @ 01:06 PM
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A lot of Greek people did just that.

The Euro being precariously dependent on member states affects a lot of nations and the fact that the world is wakening up to a lot of things means it makes sense to be more careful about ones finances and where to store them.



posted on Jun, 20 2015 @ 01:30 PM
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a reply to: Soloprotocol
Heated place, three square meals and...
Some friendly guy named 'Big Leroy' giving you all the love you could possibly want...
From behind.
I'll pass.



posted on Jun, 20 2015 @ 01:39 PM
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a reply to: butcherguy

Say what you will about him, but 'Big Leroy' has always got your back.



posted on Jun, 20 2015 @ 02:10 PM
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Industry was moved to Asia so we have nothing but debt to maintain our standard of living. So the big question is what's plan B when the housing bubble bursts from zero percent interest rates?



posted on Jun, 20 2015 @ 02:20 PM
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No harm in having a wad tucked away, I'm always investing in metal, metal tubes, sealed at both ends, food in the middle. All with a label on the outside with instructions and food value.



posted on Jun, 20 2015 @ 02:21 PM
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a reply to: glend

Perhaps that's all part of 'Plan A'.



posted on Jun, 21 2015 @ 04:04 AM
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a reply to: IAMTAT

It's Time To Put Cash Under The Mattress', Say Experts. So now you know why they are moving us towards a cashless socientiy because then you will never be able to do this because you will no option but to keep your money in a bank - gotcha

Another individual choice and option removed.

The more people conclude that more and more people are excerising direction over their lives and limiting their choices and options, the more such people will begin to feel less like free individual soverign people and more like they are someones cattle.

This is what predatory government and their partner corporations do, slowly turn free men into slaves.



posted on Jun, 21 2015 @ 04:43 AM
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originally posted by: glend
Industry was moved to Asia so we have nothing but debt to maintain our standard of living. So the big question is what's plan B when the housing bubble bursts from zero percent interest rates?



Sounds, looks and smells like a conspiracy.



posted on Jun, 21 2015 @ 05:43 AM
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in a related story from zero-hedge: www.zerohedge.com...


the minor bank run on Greek bank ATMs might just result in Capital Controls (rationed money withdrawls all over the EU) so having a couple months of cash under the mattress, for the usual repeating expenses might be the only way to stay current with your monthly payments...

bail-ins not withstanding...but that seizure of bank accounts is another topic

ADD:

Greece could be forced to lock down savers’ cash as debt crisis worsens
www.independent.co.uk...

Ultimate Doomsday Scenario Unfolding – Black Swan, Chaos And Financial Disaster On Horizon
allnewspipeline.com...


watch out for the other China shoe to drop from the last Friday record losses on the Chinese stock market===> on Monday 22 June

edit on st30143488438421592015 by St Udio because: (no reason given)



posted on Jun, 22 2015 @ 12:04 AM
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I really wonder what the gold/silver prices will jump up to and if someone really did think an economic event was going to happen then it's a good bet?



posted on Jun, 22 2015 @ 12:15 AM
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when he says cash he means gold or commodities....
cash is worthless



posted on Jun, 22 2015 @ 12:27 AM
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a reply to: IAMTAT

If something big is going to hit the market expect a massive devaluation in currency.

Why would you hold onto cash anyaay with the rate of inflation and market volatility.

Invest in assets that work or retain value not based on currency.




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