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.

Gold falls as euro succumbs to debt market pressure

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.

UkrSib BNP Paribas - Ukrainian C/A in Sep turns positive but further adjustments needed - Oct 22, 2009

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.

Dollar, euro plunge vs. yen on U.S., Japanese equity dives

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.

Football: I can't complain about having to go to Japan... at least I will get a game over there SAYS ALAN THOMPSON; CELTS ON TOUR..

New research from TowerGroup emphasizes that the flight to cash and cash- equivalents will not quickly abate.

Retail Investors Keeping Money Out of the Markets and Under the Mattress; TowerGroup Research Underscores Trend That Cash Products Won't Quickly Reverse, SMAs May Offer Attractive Path Back to Markets

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.

UBS Investor Watch Survey Shows US Investor Optimism up 14%; Private Clients Ready to Invest in 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.