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To: Rarebird who wrote (109372)	1/12/2019 6:39:09 PM
From: RetiredNow	Respond to of 116753

Long term holdings have there place. As an example, I've been a long term holder of cash and short date bonds, since Summer 2017. I've earned an average 3% on my money with almost no volatility since then. These are good investments during a bear market as they have handily outperformed the SPY during 2018 and likely during 2019, as well. If you are skilled at trading you can make more money, but will also deal with far more volatility. If you compare investments like I do, using the Sharpe ratio, then holding cash and short date bonds will look far better than higher returns with far higher volatility. I like the Sharpe Ratio, because it will tell you if the volatility is worth it for the reward you are likely to get, relative to other less risky investments. It's a good sanity check on taking too much risk. I've been investing for 37 years and long ago realized that long term wealthy is made, and most importantly kept, by not losing too much money in the down years. That's far more important than the gains made in the up years.