RE: 20th March 20204 Dec 2021 13:30
I'm sorry you feel this way bladerunner. I can understand the attraction of completely de-risking your assets by 100% cashing out, but:
(1) if you intend re-entering at a more favourable time, it is very hard to time the market with any degree of certainty - I'm afraid there are just too many moving parts;
(2) in an inflationary world, staying in cash for a lengthy period would be a mistaken strategy.
As to your comment about gambling, yes, there is an element of that but investing is as much about how you behave as what you know and there are ways of behaving that cut out much of the casino element. Finally, remember that unlike with roulette where the 'market' is rigged against you, with equities you have more than a century of statistics which show that the market is rigged in your favour - a tailwind of 8-10% per annum to be precise. Looking forward, the long-term outlook for equities has become less certain, which I think is what's behind your post, so the annual benefit may reduce, but it'll still be there over a rolling 10 year period.