Investors Lose More Money Anticipating Corrections Than From Corrections Themselves
Real Estate And Commodities Performed The Best When Inflation Is Low, While Cash Did The Worst
What makes this intriguing is that real estate and commodities tend to thrive during periods of high inflation.
Cash was the only asset class of these 12 to produce a net loss after 15 years. After inflation, its ending balance was just under $10,000. But the job of cash is to be not a growth engine but rather a safe harbor, to protect investors from violent market losses.
But cash will not help clients grow their money over long periods of time. What investors really need is reasonable net growth with drastically less volatility.