Millennials (or, for that matter, young people – regardless of the generation) often get a bad press. But, in a bull market, Jim Rogers believes that under-35s can make serious gains because of their fearlessness.
“When things are going right, we all need a 26-year-old. There’s nothing better than a 26-year-old in a great bull market, especially in a bubble, because they’re ’fearless‘. To youthful investors, a bull market will never end…”
Now, that’s great in a bull market. But in stormier weather when things are going south, Jim thinks that older (and perhaps wiser) heads should take the helm because fearlessness can be very dangerous in a bear market.
As Jim says, most of these under-35s don’t know why they made money in the first place. So they don’t know why they lose money.
“The most dangerous time is when you’ve had a great success because you really think you’re smart, and you’re immediately looking for what’s next. And that’s when you should close the windows and go to the beach or do anything to get away.”
In short, during uncertain times, sometimes the best thing to do is nothing. And part of doing nothing is holding what’s maybe one of the most-hated assets of all: Cash. It doesn’t earn anything, inflation eats away at it, central banks can’t stop printing it, and you’re denying yourself the magic of compounding if you’re holding cash.
But cash is the perfect hedge. You don’t have to worry about the market crashing if you have a lot of cash.
Now, we don’t recommend ever pulling out of the market completely, as we’ve written before. But if the market starts looking uncertain, think about raising a little cash.
- Source, Business Insider, Read More Here
