Holding cash by itself means losing value due to inflation. If you don't want to suffer the cost of the Fed's seigniorage tax you have to keep the funds you're

Holding cash by itself means losing value due to inflation. If you don't want to suffer the cost of the Fed's seigniorage tax you have to keep the funds you're not speculating with in bonds. Stocks and bonds both moving down could be indicative that some major players took on leverage using their stock holdings, and now that stock prices are plummeting they have to come up with the cash for their interest payments and are selling even bonds to do so. Best case scenario they all make their interest payments and take their loss on the chin. Worst case scenario some major player goes bankrupt and everyone has a collective freakout trying to figure out how this might push them over the edge as well.