This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Once Again, Cash Is King

Stocks in this article: NZT SDRL

NEW YORK ( TheStreet) -- Headline news last week read there's a run on Greek banks going on and eurozone chaos. As an adviser, I see a classic Greek tragedy, but I also see opportunity. We'll get to the opportunities, but first I want to discuss the fallout from the tragedy.

In a word, it's this: inflation.

Call it what you will, stimulus, quantitative easing, monetary policy, but to me it's all the same: printing money. It's happening in the U.S., and it's happening in Europe. Historically, printing money leads to inflation.

Inflation is to savers what kryptonite is to Superman. It's even worse in a low-yield environment, such as the one we are faced with. High inflation and low yields often result in negative returns when measured by purchasing power.

For example, someone heading into retirement with $1 million earning 4% may be doing OK. If they are facing 3.5% annual inflation however, their purchasing power will be cut in half over the ensuing 20 years. At 5% inflation, the damage to their purchasing power is devastating.

Further, investors want to know when inflation will materialize. My answer: usually when you least expect it.

> > Bull or Bear? Vote in Our Poll

The opportunity is to put together what I call a global cash-flow strategy. Despite what's happening in Greece, Europe and domestically, there are still great opportunities all around the world, in real asset companies, with real cash flow, that pay investors dividends and over time, increase these dividends. This is hardly a new story; it has been in the news a lot lately. But smart investors will take it to the next level and seek out lesser known U.S. and foreign companies.

Now is the time to start doing your homework by creating a wish list and starting to accumulate some of these assets. By doing so, you are likely to increase the cash flow from your investments, and hedge yourself against the inflation that can erode your purchasing power. To me that's the ultimate success story for Baby Boomers in their retirement years.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs