Cash is a terrible long term investment. It is the one way I know of to guarantee you will earn no return from now to your retirement. Why would anyone want to do that? It’s looked at as a haven, things are disruptive now and I’ll go to cash but I will jump back in when things look good. Well you may get out now, but a good example is Japan. That cash was probably raised at the bottom of the US market and Japanese market even more and people are probably now saying I didn’t get back in quickly enough, but getting in and out, I regret to say, is a loser’s game.
~Jack Bogle, founder, Vanguard, FOX Business interview, March 30, 2011