At the start of the stagflation of the 70's, the S&P 500 rallied nearly 36% from June 1970 to June 1971. In proceeding decade, the nominal value of the S&P 500 went from $73 to $114, a respectable 56%. However, cumulative inflation during this same period was approximately 100%. That healthy 56% nominal gain became a real 39% loss.

https://www.macrotrends.net/2324/sp-500-historical-chart-dat...

Sounds like it’s better to be invested compared to sitting on cash. Which is the norm, correct?

I don't know of anyone who advocates holding cash beyond an emergency reserve in any virtually any circumstance.