Core Viewpoint - The article emphasizes the advantages of holding cash during a deflationary period, highlighting increased purchasing power and the ability to capitalize on low asset prices [1][3][5]. Group 1: Cash Advantages - Cash holders experience enhanced purchasing power as prices of goods, such as pork and household appliances, have significantly decreased, allowing for more purchases with the same amount of money [3]. - The decline in prices for major items, such as cars, illustrates the substantial savings for cash holders, who can save tens of thousands when making purchases [3]. - Despite low bank interest rates, cash provides a tangible positive return due to falling prices, making it a more attractive option compared to riskier investments [3][5]. Group 2: Risk Management - Cash serves as a safeguard against investment risks, with many investors facing significant losses in stocks and funds, while cash holders maintain their principal and earn stable, albeit low, returns [3][5]. - In a volatile economic environment, having cash reserves allows individuals to manage unexpected situations, such as job loss, without immediate financial pressure [5]. Group 3: Investment Opportunities - Cash enables individuals to take advantage of low-priced assets during deflation, as property and stock prices decline, allowing for strategic purchasing at lower costs [5][7]. - The article notes that cash holders can wait for optimal buying opportunities, potentially leading to significant returns when the economy recovers [5][7]. Group 4: Strategic Cash Management - The article advises against converting all assets to cash, suggesting a balanced approach where emergency funds are maintained while also investing in safe assets like government bonds [7]. - It emphasizes that while cash is advantageous in the current deflationary environment, it is essential to have a diversified investment strategy to navigate economic cycles effectively [7].

Group 1 - The core argument is that cash is becoming more valuable in a deflationary environment, as the purchasing power of money increases due to falling prices [3][5][11] - The broad money supply (M2) in China reached 326.06 trillion yuan, growing by 7% year-on-year, indicating a significant increase in money supply relative to GDP [1] - Bank deposit interest rates have decreased, with state-owned banks offering rates below 2% for three-year fixed deposits, leading to reduced income for savers [1] Group 2 - In a deflationary context, having cash allows individuals to navigate economic uncertainties, such as job loss or medical emergencies, without panic [7][11] - Cash holders can wait for new investment opportunities, especially as many investors face losses in stock and fund markets, making cash a safer option for the time being [9][11] - The potential for acquiring distressed assets, particularly in the real estate sector, is highlighted, with examples of wealthy individuals preparing to invest in undervalued properties as market conditions worsen [9][11] Group 3 - Cash can provide liquidity to struggling businesses, allowing them to survive during economic downturns, which is crucial for maintaining operations until the market stabilizes [11] - The sentiment among business owners is shifting, recognizing cash as essential for survival rather than a liability, especially in challenging economic times [11]