quote:

Originally posted by Patriot:
Recommending a cash position for the last two years is complete stupidity…

The U.S. annual inflation rate was 2.7% for calendar year 2025 and stands at 3.7% for the 12-month period ending September 2026.

Congratulations you just lost a shit ton of money.

quote:

Originally posted by doublesharp:
2 years +35%

Even if you were solely invested in broad market index funds (either S&P500, total US, or total world), you'd be up 22-25% over the last two years, versus sitting on the sidelines in cash either actively losing money or just keeping up with inflation.

I get it that at some level having money in the market even if it is extremely over valued is positive.
A 2000 point drop in the drop of a hat can wipe a lot of that positivism out in an instant. Maybe it will go back up and maybe it won't.

There are a lot of factors about cash holding.

If you are debt free. Don't spend lots of $. Own everything you need.

A portion of your net worth in cash is smart imho.

Many times having cash allows you to negotiate significantly lower prices when going to purchase things as well.

It is not as simple as, if you are not in the market with available monies, you are dumb.