No cash to invest

[Harmony Management]

I know major investors, particularly from Quebec, who advise being permanently invested at 100% in the stock market. Currently, I have no possibility of investing and it could be a shame. Don't you think that these managers are wrong and that you should always keep money to take advantage of the declines. I wonder if these people are not blinded by their professional income. It is certain that if you earn 50,000 euros per month and you live on 10,000€ (which I do not criticize at all), it is easier to have liquidity permanently to invest during the bearish months.

[Jerome]

I think they are partly wrong. It is true that in the long term stocks yield the most and that it is very easy to miss big bullish moments if you stay partly on the sidelines of the market. But on the other hand I think that you should always keep some cash aside, especially when the markets become overbought as is the case at the moment (and the current correction does not change anything). You have to keep some ammunition to pull the trigger when stocks become interesting again, as was the case in 2003 or 2009. Otherwise you really end up stupid…

[Author]

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