I think the point was if you are worried about a hypothetical 50% crash (or whatever number), sitting in cash investments with near zero return isn't necessarily the best strategy. You're much better positioned for a large loss if you are up hundreds of % first (the SP500 is up 300% or so in the past decade).

I know people that have been waiting for a crash for so long that it would take something like a 75% drop in markets to now vindicate their strategy of waiting on the sidelines.

> You're much better positioned for a large loss if you are up hundreds of % first (the SP500 is up 300% or so in the past decade).

And to add to this, dollar cost averaging means if you drop from 300% gains to 200% gains (let's say the market drops 100% for a laugh), you're not only still up 200%, but as your (automated) investment strategy continues to buy stocks you're now buying them at a massive discount. When they climb again, you won't be up 300% again, you'll be up closer to 1,000% (a lot, anyway.)