"the wealthy person's investments will crash in line with the market. There won't be a financial cushion, at least not a significant one." ... "This is clearl

"the wealthy person's investments will crash in line with the market. There won't be a financial cushion, at least not a significant one." ... "This is clearly false - wealthy people don't keep mountains of cash lying around as they would miss out on the growth in bull markets, and as a result their wealth would decrease relative to their peers." I read with great interest the two volumes that Niall Ferguson wrote of the history of the Rothschild family.[1] It's a fascinating work that serves well to bridge the gap of European history between Napolean and World War One. I bring it up here because the Rothschild family did indeed do exactly what the parent comment suggested that "rich people" do. They quietly did their simple banking business year after year, piling up profits and assets that were repeatedly poured into down markets when they viewed that assets had become cheap. This was not market timing - this was simply patience. The down market always comes and their simple, boring factoring and discounting was always reliable. [1] _The House of Rothschild_ ("The World Banker")