This Day On The Street
Continue to site
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

Once Again, Cash Is King

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SDRL $4.78 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs