Good Advice

Be fearful when others are greedy, and be greedy when others are fearful.” That is Warren Buffet’s advise in this Op-Ed in The New York Times. He also points out that cash may be false comfort.

Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

It’s a well written and sensible column.

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