No. of Recommendations: 24
The other investment strategy was to be the ultimate provider of capital during financial crises...
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This is one I’ve been thinking about the last couple months. There is just so much capital sloshing around these days looking for a home ...
Yes, there is a lot of money sloshing around. So much so that one might call it a "tide". Tides go in, tides also go out.
Given the amount of unwise debt sloshing around, I think it's entirely possible that, despite the copious apparent liquidity at the moment, I think a lot of it is in practical terms illusory: good until reached for. There will be some large firms in need of large capital infusions in the next panic, and some of them might be, or own, some quite good underlying businesses. So I wouldn't write off the prospects of the weekend phone call strategy. I think ready cash still has a level of optionality that you don't get with anything else.
Jim
