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If everything seems too expensive, and you're confident enough the prices will go down, you should just hold cash and wait.
by nitwit005 10mo ago
If everything seems too expensive, and you're confident enough the prices will go down, you should just hold cash and wait.
- saulpw 10mo agoThis is specious advice. Never hold 100% anything. Especially cash. Maybe/likely the US Fed will pump trillions of new dollars into the economy in random places and cause massive inflation. So let's say we hold 25% cash, or even 50% cash. We still have to allocate the other 50-75% somewhere. Where?
- rchaud 10mo agoAllocate it to a bank account with deposit insurance and go long on "peace of mind". Losing 3-5% of purchasing power over 12 months' time is better than losing 15% or more in an overnight crash and have to wait for the government to intervene and prop values back up.