doofrat, now is not the time to be in the stock market. The stock market is poised for a major correction. All the investor services to which I subscribe recommend a 100% cash position. When Warren Buffett started investing, his returns were 14% annually. They’ve reduced 2% per year, and now it’s at 6%. As he says, it’s harder these days to find good bargains.
Historically, the stock market returned x%, depending on the time frame you choose you can make this number look big or small.
Those of us in cash are waiting on the sidelines for a good buying opportunity.
I sold most of my stocks last month, and am 95% in cash.
It’s true that my 5% CD is not outpacing inflation, but if I lose 25% in the stock market, I am even worse off.
