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The market can stay irrational longer than they can stay in cash.
It's also not usually obvious when something's a bargain. If it were, someone else probably would have bought it already.
Imagine all the advice they're getting about how dumb they are for not being in the market, too. Letting their cash melt away. And those critics are right, too, except when they're not right.
I don't envy 'em, I'll tell you that. There's a path forward, and great opportunities, but I don't know that I would have been able to seize them at that age.
I have a friend attending a school known for finance, and they are actively pushing students to start investing now (at 18, 19) because, if they only save in cash, they won't keep up with inflation.
I'm pretty confident I wouldn't have seized them because I didn't when I had the chance to.
Yes, but they are not saving cash because "Cash is trash." They're saving in those exact markets that can rugpull them.
I think what they might be missing too is how quickly things can change.
If a major real estate or stock market crash hits, those who have been patiently saving up cash could have a great opportunity to buy into assets at a cheap price so they can build wealth.
To be fair, if I were a young person struggling to make ends meet, I don't know if I'd be able to think that way. Especially when history teaches us that the current regime is willing to monetize every crisis.