Now Is A Good Time to Build a Wall - Around Your Savings
Image Courtesy: KPBS.org

Now Is A Good Time to Build a Wall - Around Your Savings

If you are like most Americans, you have just learned that you have been kidding yourself for years.

We believed that the economy could grow quickly in spite of the 2016 election outcome.   We believed that the Republican Congress could grow our economy by passing a tax law that ignores the national debt and penalizes residents of blue states.   We believed that fights with our allies were good.   We believed that picking a fight with the Chinese would be in our long-term interests.  We even believed that Facebook could be a technology leader when their only innovation was to abuse personal data in order to provide a forum for feeding lies and deception to the most vulnerable.

We’ve just experienced a December that has been more brutal than any since 1931.   Everything comes home to roost quickly when all major US indices fall 7% in one week.

When we last experienced a stock market fall of this magnitude in one week (September 2008), we were a lot closer to the market top than we were to the bottom.

In 2018, cash has now outperformed everything.

I am not a proponent of building walls.   They keep good ideas out and serve political gains for those who demand them.  But, things could clearly get a lot worse in 2019, and this just might be the time to build one around your future and your savings by raising your allocation to cash.

Check the best online rates here.

See rates at banks near you here and at credit unions near you here.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.


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