My favorite conservative investor Seth Klarman is raising cash (http://amarginofsafety.com/2011/10/19/just-what-is-seth-klarman-up-to-it-may-not-be-what-optimists-believe/) The last time he decided to raise cash was right before the 2008 market collapse. Seth believes we may be entering a time period when true bargains will begin to become available and is raising cash to take advantage of these possible opportunities. I agree with Seth. Several signs are flashing that the European Sovereign debt crisis is taking a turn for the worse. Equity prices are overvalued at these levels and I believe it would be very prudent to be holding large amounts of cash in the investment portfolio. If you are in fact holding equities, I would advise having those positions properly hedged. Even gold and silver will be liquidated to raise cold hard cash in case of another liquidity crisis similar to 2008. Now is the time to hold cash and wait for opportunities .
“Buy at the sound of cannons, sell at the sound of trumpets”
Nathan Mayer Rothschild