> Sounds like what people said right before it tanked hard
1. People have predicted 19 of the last 2 recessions. Waiting it out because the market will tank hard in the future is a fool's game.
2. As long as capitalism keeps working, and our governments keep catering to the rich and powerful, the market will recover after it tanks hard. As of 2021, this is a pretty safe bet to make.
> Like in 1929? Or 2008? I won't need to dust off my cash because there are plenty of other things to invest in other than stocks
I'm glad you brought up 2008. Let's assume the worst case scenario.
Anyone who invested a lump sum into the S&P 500 at the peak, on the night right before the crash, in 2008, would have tripled their money in the past 12 years, between gains and dividends.
That's a 10% year-over-year rate of return. And that's the worst-case scenario.
If you are so convinced that a crash is coming, do the prudent thing, and maintain a 70/30 ratio of stocks to bonds or cash, and re-balance every month. You'll lock in your gains during bull runs, while having the capability to capitalize on any losses when the market slides.
What you shouldn't do (unless you plan to be dead in a decade or two) is sit out on the sidelines, day after day, month after month, year after year, watching your money lose its value. What you also shouldn't do is to day trade, invest in weird financial instruments you don't understand, overleverage yourself for the purpose of speculating on illiquid investments (including but not limited to real estate), trade on margin, or throw all your money into meme stocks.