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This year. Meanwhile it would have missed out on 27% in gains the previous year (and its associated dividends), if I kept it in a bank account. Also that 20% l

This year. Meanwhile it would have missed out on 27% in gains the previous year (and its associated dividends), if I kept it in a bank account. Also that 20% loss will most likely recover in time. Inflation almost never reverses itself, it only slows down. There's a reason rich people park most of their money in assets, and not in savings accounts. If they got more returns by keeping it in savings accounts, they would do that.

happyopossum 4y ago
> rich people park most of their money in assets 6 months of basic living expenses isn't "most of their money" for rich people. Ideally it wouldn't be for the rest of us either. You seem to be thinking I'm against investing altogether - I'm not, but there is a significant risk avoidance in having an emergency fund that is 100% liquid and not tied to market risks.