Monday, August 20, 2012
Problem Of Being Not Invested
I just went to the Bank recently to create a new fixed deposit account for amount I received recently from some third-party organizaion. I did not want to invest this sum as the market has gone up a bit recently. I was quite surprised that the rate is 0.15% for 6 months and 0.25% for 12 months. I thought to myself what would have happen if I am totally in cash in the kast few years or have gotten out due to the volatility in 2010 and 2011???? What much would I have lost without being keeping myself invested??? By keeping myself invested, I would still be better than if I had been in cash even if the market got to go down by 20-30% in the next few months. The current environment simply do not reward but instead penalise heavily those who stay 100% in cash.