Global stocks snapped their winning streak Tuesday on worries over the U.S. economy deteriorating further as American Express said its credit card default rates soared last month, hammering home the heavy toll the financial crisis has had on the consumer.
But experts told CNBC now is the time to drop cash, the safe-haven play of late 2008 and early 2009.
Biggest Risk Now is Being in Cash
Being in cash is one of the biggest risks out there, due to the danger of rising inflation in the next two years, warns John Bollinger, founder of BollingerBands.com.
Dollar Strength Will Last Until Next Year
Lyle Gramley, a former U.S. Federal Reserve governor, says the dollar's strength will hold into next year as the world economy remains in bad shape.
Driving the Dollar
Repatriation flows have been driving dollar strength, says Ray Attrill global head of research at Forecast Australia.
Has Euro Turned a Corner?
The rise of the euro-dollar is not due to the euro's strength, but the dollar giving ground against the major currencies as a whole, says Callum Henderson, head of FX strategy at Standard Chartered.
US Economy will Lead Recovery
Lyle Gramley, a former Federal Reserve governor, says U.S. jobless rate is likely to hit 9-10% until late 2010, and any economic recovery will be a mild one.
Geithner's Bank Plan
Bill Smith, president, CEO and senior portfolio manager at Sam Advisors, believes it is time U.S. Treasury Secretary Geithner gives details of his bank plan, as investors need to know the rules of engagement to move forward.
Bank on Financials
There are opportunities in the banking sector, says Bill Smith, President, CEO and senior portfolio manager at Sam Advisors.
Choose Gold Over an AIG Insurance
Marc Faber, editor & publisher of The Gloom, Boom & Doom Report, a.k.a. Dr Gloom, would rather own gold as an insurance policy, than an insurance policy from AIG. He tells CNBC how else he is investing his money.