Cash Is King
Written by admin from on November 25th, 2008 | 0 CommentsWith the current state of financial turbulence, many invididuals are seeking to liquidate their assets and labor into cash. The result of this action by a large group of invidividuals is the price of the U.S. dollar is rising while the cost of products, goods, and services is falling. In other words, those with disposable cash on hand are experiencing a surge in buying power. For example, auto dealerships are very eager to sell cars right now. One walking in to purchase a car could likely get many perks added and the price substantially reduced. This fact is exacerbated by the red alert within the auto industry on a whole. However, even other industries are feeling a price contraction. Many companies are cutting advertising advertising dollars. Google has been directly affected by this as their primary source of income is marketing. Thus, the cost to increase ad positioning within Google’s search pages has declined. Here, the situation is slightly different because advertisers bid against each other “in the dark” but the example still holds the applicable concept: the person with available assets is able to purchase more and better. It is my recommendation that those with disposable income hold on to it awhile longer. Bargains will become better bargains and more widespread as the economy works to correct itself. In the interim, I suggest adding to your income if possible as cash will become even more valuable in the near future.

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