The problem, as I see it, is with potentialities and the capacity to lose a large chunk of whatever I may have been able to put away. Naturally there is "opportunity cost" when one chooses to be a fiscal conservative but there is also the bonus of wealth preservation and being able to know that my capital is not at risk.
Much depends on one's economic situation and how much money to invest out of total holdings. Can I afford to lose a little-yes
can I afford to lose a lot -no. Not at this stage of my life. I really don't think I have the energy to start from scratch again and so I prefer to live in a humble way and conserve my money with the knowing that this is the optimal position for me.
At the moment I think the "everything bubble" is dangerous and all the warnings have some validity. With all that being said though and having enough experience to understand opportunity I am happy to wait for a large correction and use that as an entry point for getting back into the market. Think of all the exposure people have to a very old bull market and especially those who trade on margin, who risk so much.
The brighter a flame burns, the shorter its lifetime.
