The vulture is a patient bird

Many people are getting tired of seeing their cash earn next to nothing on deposit. Yes, it seems to make sense to suck it up and just sit on the money, and yes, it’s nice to have survived every possible problem so far, but hey, the boredom of it all!

A friend of mine called me recently to tell me that he is slowly going crazy waiting for some action. I smiled and said, “You mean you’re eager to invest in some currency but you’re scared to take the plunge, right?”

“I guess,” he said, waiting for me to make a suggestion without having to make it sound like he was looking for advice.

If the urge to get some monetary action is strong enough and the feeling of sitting on money that doesn’t work is unbearable, that’s a situation that needs careful handling. One should not get into a state like that of an alcoholic who has a craving for a drink, or a gambler who needs to place a bet for the sake of placing a bet.

It is not very easy to fall in love with any currency these days. However, it’s not hard to feel nervous about having one guy in particular, namely Sterling. Lately, when I think of GBP, I see an acrobat teetering on a tightrope with no safety net underneath and a strong gale approaching. Now getting rid of it means one has to enter another coin. Personally, I have a feeling that lately the USD is calling and saying “Hey, come get me before it’s too late”. It does not mean that many people do not have a different opinion. This is fine, as any market needs a buyer and a seller.

It doesn’t take much imagination to conclude that the United States will be the first to come out of recession. Likewise, it doesn’t take much imagination to realize that the GBP cannot possibly go up forever or ride on the back of this or that sentiment or risk appetite. At some point, all of this must be paid in full. This will mean that the belt will have to be tightened, and whoever tightens it will not be very popular with the masses, as is invariably the case. But that, of course, is something else.

Weapons of opportunity must be carefully maintained in the best condition, as must the knowledge of when and how best to use them for maximum results. Everyone gets a chance to get it right at least once, and I’m sure many of you will admit that you’ve had that chance, only to see it go out the window because you weren’t prepared to grab it. This does not mean that one should consider uncertain prospects. It is wise to know when not to proceed, let go and walk away.

With all this in mind, I called my friend and told him that if the need was great enough that I had to take action, then I would get rid of my pounds soon and go into dollars. I wouldn’t expect miracles right away, but I would expect to move forward in style in due course. The game is not for meek little birds, it is more for vultures. They have a knack for spotting prey, but we know that a vulture is a patient bird.