What Not To Do Right Now
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Alex Pollock
Resident fellow at the American Enterprise Institute, president and CEO of the Federal Home Loan Bank of Chicago, 1991-2004
We are in a Panic, with a capital P.
It reminds us that maintaining a reasonable amount of cash at all times against contingencies is always a good idea. First, you can then spend it, if necessary, without selling into the Panic. Second, you'll be able to buy things cheap when leveraged speculators are selling under distress. Think of Joseph Kennedy in the 1930s. Similarly, investments with income can keep providing cash even when prices fall.
Final thought: Your best asset is yourself as earner: Don't retire too early!
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