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July 7, 2009

All Business: Investors find a new love for holding cash

  • Even with the massive stimulus, Americans are choosing to bolster their nest eggs rather than spend.
    AP Business Writer

    NEW YORK — That old saying “cash is king” certainly rings true these days. Investors can't seem to get enough of it, which ultimately could be bad news for the stock market and the economy.

    In the past, investors would cling to cash until the market's prospects brightened and then money would pour back into stocks. That's just what the bulls today are hoping will drive a surge on Wall Street in the months ahead.

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