Can we look at cash rotting in the bank as a "separate" asset investment from stock portfolio?
Cash: A Call Option With No Expiration Date.
For those with earned income; cash as a call option with no expiration will not have any significant impact even over prolong market cycle; but for those retirees like Uncle8888 who is depending on his portfolio and net worth's asset to generate cash flow to support his household expenses is a different story.
Retirees' cash as call option must have expiry date near the bottom of Bear or beginning of Bull; otherwise this call option without expiry over market cycles will eventually cause him to draw down on his net worth's assets to meet household expenses.
Once into aggressive asset down; his sustainable retirement income for life will be doom!
For retirees; it is not just about opportunity cost with cash as call option; it is serious concern on sustainability and survival.
Don't play, play with call options!