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Where should I keep cash in the event of a total market crash?

I hope this question makes sense. If the market were to completely crash to the point where banks had to freeze checking/savings/stocks/bonds, sell off assets in order to pay their debts, and depositors could no longer access their cash, where would the best place be to put your cash to avoid this type of scenario?

Financial Planning
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May 2017

The "Total Market Crash" scenario that you've outlined is more severe than the Great Recession.  In the event or a massive stock and bond market dislocation, there is a near certainty that the world's central banks would pledge unlimited liquidity to the financial markets to quell panic. In the scenario you mention, consumers have limited or no access to their own money. One must assume that you are preparing for a scenario, then, where the world's central banks have no credibility. That suggests that traditional currencies like the dollar and the euro have limited or no use in the meltdown for which you are preparing. 

In my view, this is a disaster scenario with consequences so unpredictable, they are difficult to hedge against. That said, you are probably better served by setting aside precious metals like gold or silver. In a world with a failed banking system, these are likely to be the closest thing to legal tender. 

Keep in mind that the world's product markets might be impaired as well in your scenario. Hoarding, and possibly looting, could spread. Stockpiling canned food would also be worthwhile. 

 

 

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