Stock market risk is a valid concern. At the early stages of investing, regular savings are more powerful than the incremental movement in markets.
If you required your stock market investments to fund short/medium term spending needs (like those in retirement) it is important to make sure you hold this medium term capital in cash or bonds.
When you can afford to allocate capital to markets whilst you are working or it is capital you don’t expect to touch for some time, then long term investing is hugely important. The only way you can guarantee losing money is by holding it in cash and going backwards vs inflation.
Here is a great tool to explore this long term thinking. You can play around with historical investing over short and long time frames.
Important notes The information contained within the calculator is general informational purposes only. It is not…tool.vanguardinvestments.com.au