The markets are all over the place ...

Looking at recent market activity it really hits home how valuable cash is right now. Investments made in the next few months will probably have pretty good returns 3-5 years out. Now having the foresight to have cash on hand prior to a downturn is either lucky or a good business model (ex. look at BRK. They use extra cash to be able to back larger insurance policies that others can't.).

For the rest of us another trend shows its strength. Stocks that more investment value than speculation value have held up well and some have appreciated. Look at stocks like:

KO
JNJ
MMM
WMT
PEP
...

The list goes on and on. Investments in strong companies like these when the ecomony is booming can be used as a form of cash when parts of the economy sputter. Personally I rarely sell, but I am tempted to use cash from stable investments to go buy some growth stocks that were always too pricey for me in the past.

Remember being greedy when others are fearful is easier in good times than done in bad times.