Quote:
Originally Posted by lewdog
Sitting in cash allows your to be eaten up by inflation in no time, especially if your timeline is a decade or more. The $10k you saved in 2004, is not worth anything close to $10k in today's money.
You realize if the market corrects 10-15% this week, people are still sitting with more money than they had a year ago? Factor in compounding interest over decades and it's very hard to lose money in the stock market with consistent investing across mutual funds, ETFs and indexes. Dabbling in individual stocks is a different story, however.
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This. To cherry pick and take yesterday as an excuse to be in cash is to ignore an entire year of nearly unprecedented gains.
It's poor theory to willfully ignore the erosion of capital to inflation.