These are all good points. Another reason to diversify and not again, put all your eggs in one basket such as having no debt, all cash, etc etc etc…
If inflation hits and all you had was cash assets, you could be out 20% a year…
Better to have just a mix of stuff to sleep better at night and “tap” assets which aren’t down when various things happen in the world. Sorta like have both a Roth and a regular IRA, if taxes are bad, tap the roth, etc…
This is the same argument against having 100% bonds, CDs, stocks, housing, you name it…
I never understood why people would do that to themselves. It doesn’t help your returns or savings or safety.
Since you choose what assets to manage/sell, you can always control your tax rate.
