Time to stop investing in Bonds? Where to go?

[cessnajockey454]

Inflation hasn't been 4% in nearly 25 years. It's currently about 0%.

That should make cash a desirable short-term position then, shouldn't it? Is it not a good idea to have sufficient cash reserves on hand to take advantage of market pull-backs?

 

[SlumTodd_Millionaire]

That should make cash a desirable short-term position then, shouldn't it? Is it not a good idea to have sufficient cash reserves on hand to take advantage of market pull-backs?

For the average investor? No. They aren't paying enough attention to daily market moves to be able to take advantage of buying opportunities. I do keep a cash position in my brokerage account, but my TV is on CNBC during the entire trading day so I can take advantage of a buying opportunity, like this week. Most people? Not so. The average investor can't act like Warren Buffett. That's why he advises most people to simply buy into index funds using the tried and true method of dollar-cast averaging.