Flight to Cash

Flight to Cash

A situation in which traders and other investors close their positions and take refuge in highly liquid assets such as cash or U.S. Treasury securities. A flight to cash occurs during a precipitous, and apparently sustained, drop in security prices. When markets are highly volatile and seem likely to decline in value, investors may fly to cash because it is an asset likely to retain its value in the short term.
References in periodicals archive ?
It could be bullish if the ECB starts money-printing, but it could be bearish if there is another flight to cash," he said.
Indeed, Ukraine has to pay a huge price for being highly dollarized economy as flight to cash FX in domestic savings still hurts BoP more than actual flight of foreign capital.
What is happening in the financial market is capital flight to cash,'' said Toru Umemoto, chief foreign exchange strategist at Barclays Bank, referring to selling of a variety of investments to secure cash.
If this season is Thommo's last tour of duty, he doesn't want it to be ruined because the club left all of their energy behind in a succession of airport lounges waiting for the next flight to cash in on their name.
The first Investor Watch shows individual investors' optimism returning, their flight to cash receding and their intentions to reinvest in financial markets and spend on experiences.
What is happening in the financial markets is capital flight to cash,'' said Toru Umemoto, chief foreign exchange strategist at Barclays Bank, referring to the selling of a variety of investment instruments to secure cash.