Cash Is A Choice

"Prices are so high right now... It's an election year... It feels like we are due for a stock market correction..."

There are many reasons why we emotionally don't want to take risk in the market, and I have heard them all.

If you are holding cash in your long term investment portfolio, you are making a choice to stay uninvested. You are deciding that your crystal ball is more accurate than the efficient market of U.S. stocks.

If you invested $10,000 at the beginning of 2003, at the end of 2022 you would have had $65,000. If you had missed only the 10 best days for stocks over that 20 year period, your ending balance would have been $30,000.

No one has a crystal ball. Anyone who says they know where the market is going, is most likely trying to sell you something. Cash is a choice, and over the long term, a very poor one.

Stay invested.