There are a lot of investors who have been scared to death into cash.  And there are a lot of people who are not investors who (insanely) leave a lot of money sitting in savings or worse checking accounts.  Those people are going to get screwed in 2009.

I predict that in early 2009 we are going to have some more economic woes and perhaps a few more months of bad news and even deflation.  And then it's going to hit.

With interest rates cut almost to zero, with the government bailing out companies, with a stimulus package coming, and with the Fed printing a ton of money.... how is it not obvious to nearly everyone that we are headed for some major inflation?  No matter how BAD the economy is or how low consumer confidence is or how many people lose their jobs... the market HAS to respond to those things.  It's simple supply and demand... and when the market is flooded with US Dollars, the US Dollar is not going to hold up.

I'm not talking about the stock market exactly... just capitalism as a whole and the value of the currency.  So you double the supply of money, unfreeze the credit markets and essentially make money free by offering 0% interest rates.  Dollar is going to crash.

So within a few months, it will be very important to get OUT of cash... at least US currency.  You need to get into gold or stocks or commodities or anything else.  Prices are bound to sore and your CASH is going to buy a heck of a lot less.

If you're looking at stocks mind you this is going to be a great time to look at US companies that export goods because American products are going to start look really cheap internationally.  And their currencies will buy a lot of ours!

GET RID OF YOUR CASH BY MARCH!