Interestingly enough I know folks who pretty much use this rationale to NOT invest at all. I have pHd Chemist (so pretty smart cookies) that will only do the bare minimum in the 401K because they don't trust the stock market.
Bogle then asserted that fund fees of, say, 1%, will destroy much of that balanced portfolio’s real return. Combined with advisor fees of 0.50% (a conservative number), investors may be left with nothing after adjusting for inflation.
Moreover, taxes and well-documented investor bad behavior (buying funds at high points and selling them lower) will likely erode investor returns further.
Benz raised the question of whether investors should invest at all given this forecast, and Bogle said, “Invest we must.” The reason for that is cash is yielding virtually nothing, which means it’s producing a negative return in real or inflation-adjusted returns.
[B]Given Bogle’s grim view, however, it isn’t clear why investing really is better since it can also produce negative real returns[.