Comment by cinquemb
6 years ago
"Ray Dalio says 'cash is trash' and advises investors hold a global, diversified portfolio" - Jan 21 2020
Had you have listened to him, you would have just been taken out back, shot, and put in one of wuhans finest crematoriums… better off reading "Statistical Consequences of Fat Tails"[0]
His advise is still sound if you are an investor and not speculator.
The part of your investment that is in stock should be determined your investment horizon. If you don't need to sell your stock in next 15 years, don't hold cash.
Yeah, would have played out very well for those top ticking n225 in 1989, esp with every global CB's trying to follow in the footsteps of the BOJ, while everyone is crowding into "diversification" and searching for yield…
I consider investors to be the same as speculators, just speculators who think their beliefs will remain valid over long time frames… cause that's the gamble.
investor who does
- dollar cost averaging,
- diversification, small cost investing,
- has sufficiently long time-horizon
has never lost money on 15 year timescale, at least past WWII.
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So if you don't believe in investing then what are your plans for retirement? Just to save enough money into a bank account?
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