Monday, July 24, 2017

What To Do With Your Cash?

First off, don't be this guy:
Alleged meth kingpin Zhenli Ye Gon remains in custody in the US fighting extradition to Mexico.
That's Zhenli Ye Gon
I repeat, do not be him. More after the jump.

From Zerohedge:
Have you moved a material percentage of your financial portfolio to cash? Have you become so concerned about the meteoric ramp upwards in asset prices that you find it wiser instead to move to the sidelines, build "dry powder", and wait to re-enter the markets at saner valuations?
If so, you have my sympathies.
The past 5+ years have been brutal for savers pursuing this strategy. I know this well, as I'm one of those folks, too.

The Mother Of All Financial Bubbles As we've chronicled for years here at, the global central banking cartel started flooding the world with liquidity (aka, money printed from thin air) in response to the arrival of the Great Financial Crisis in late 2008. And they never stopped.

The chart below shows how the combined balance sheets of the major world central banks (Fed, ECB & BOJ) are 3.5x higher today than their pre-crisis levels less than a decade ago. (And if we included the PBOC in this chart, the cumulative total would be 18.8 Trillion!):
All that liquidity has to go somewhere. And, as hoped by the central banking cartel, it has found its way into the financial markets, pushing the price of nearly every asset class to record extremes. And then higher still....
The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. 

Back to Mr. Ye Gon. He had a problem that may be familiar to our readers. He liked having some mad money available and kept it at home. But like the cat lady who starts out with three and is then quoted as the hazmat team shows up, "It kinda got away from me".

Zhenli had cash in cabinets:

He had cash in closets:

He had so much cash it was a fire hazard:

The Mexican government took it away.
$207 million in currency.

Don't be Zhenli.