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REDDIT

Converting to Cash for 1-2 Months vs. Missing Out on 1-2% Growth

H
Mar 8, 2025 · 22:13

If you're investing with a 10-20 year horizon, is there really any harm in holding cash for 1-2 months during uncertain times?

The way I see it:

If markets stabilize, you reinvest and potentially miss out on 1-2% growth.

If things take a downturn, you have dry powder to buy back in at a lower price.

Given that long-term investors typically advocate for staying the course, is this kind of short-term defensive move really that bad? Curious to hear thoughts from those who have done something similar.