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Yeah. I have 5 years salary in cash, and know many people who also pulled out of the market over the last 6 months. Hell, warren buffet is sitting on 350 billi
by s1artibartfast 2y ago
Yeah. I have 5 years salary in cash, and know many people who also pulled out of the market over the last 6 months.
Hell, warren buffet is sitting on 350 billion in cash waiting for this exact scenario.
- j4coh 2y agoWow! Even with the crash, wouldn't you have been better off getting the last five years of gains, especially given interest rates didn't match inflation?
- j4coh 2y agoI was curious, so checked - $500,000 in VOO 5 years ago would have been 1.18 million today - already accounting for the crash so far. The market would need to crash an additional 60% starting with the next open to get you back to your $500,000 break even. Maybe this will happen, but that's quite a fall.
- s1artibartfast 2y agoI'm not saying I have been sitting on them for 5 years, just that they are in cash now. 10/10 agree sitting out the last 5 years would be a mistake.
- j4coh 2y agoHow do you know ahead of time when to pull it out?
- s1artibartfast 2y agoYou make a personal evaluation that differs from the market and you act on it. You need a model of the world and to believe it is more accurate than the average. A lot of people felt the market was overvalued and would correct during the Trump presidency.