Feeling Scared? That is Wonderful News!
July 10, 2015 at 10:59 AM EDT
July 8, 2015, was a watershed day in the annals of investor uncertainty. Greece and Puerto Rico are unable to pay their debts; United Continental Airlines (UAL) briefly grounded its entire fleet. Chinese stocks market are in free fall. Trading on the NYSE was halted for about 3.5 hours. The Wall Street Journal’s website went dark for a few hours. The DJIA sold off by 261 points while the NASDAQ dropped by 88 and the SPY sold down 35. Media outlets were spouting conspiracy theories while noting that the major indices had violated their 200-day simple moving averages, SMA (200). Just six weeks ago the S&P 500 was making new all-time highs. Cash was trash. Now, even in a ZIRP (Zero Interest Rate Policy) world, publications like Barron’s are saying that ‘Cash is King.’