Below is Fitzwilson’s exclusive piece for KWN:
“A phrase which many of us are familiar with and often use is “Taking Money Off Of The Table”. It is first and foremost a gambling reference, but it is generally used to describe a reduction of risk. People have viewed “going to cash” or pulling out of the investment markets as a way to not be “invested” in order to achieve a reduction in volatility and market-related risk.
It has also been seen as a way to avoid business and solvency risks specific to an issuer of various forms of stock and fixed income. Preferred stock has been considered to be safer than straight equity. More like a bond. Notes and bonds were often high on the pecking order in case the issuer ran into trouble or was even being liquidated.
We found out with the Cyprus Crisis that taking money off of the table is no longer the safe and secure alternative to being in the investment markets ...