Buying anything close to the top of the market is risky. For stocks purchased in 2000, it took 10 years for investors to get back to even.
Who knows the future. All I know is that at this point in time I’m happy to be earning a guaranteed 3.75% – 4.25% return (e.g. paying down a mortgage, buying a multi-year CD) than potentially losing 10% on all the new money I’m saving. For your existing investments, make sure to review your asset allocation.
Be wary of people who scoff at those who hoard cash. These scoffers probably weren’t investing during the 1997 Asian Financial Crisis, the 2000 internet bubble, or the 2008 housing market implosion. If they were, they probably didn’t have very much exposure and therefore think they are geniuses for investing in a bull market.
What I’d like everybody to do right now is take stock of all their cash sources. Hopefully, we’re not talking about just one bank account either. The stock market is at a record high post Trump’s election and we’re up ~200% from our February 2009 lows.