When facing market volatility, many investors instinctively retreat to the perceived safety of cash. However, we argue that this move isn't always as prudent as it seems. Amid current inflation rates, cash holdings can suffer significant purchasing power erosion. Furthermore, holding onto cash can mean missing out on potential returns from other asset classes. Instead of a knee-jerk flight to cash, we advocate for a long-term perspective and diversified portfolio strategy, warning that the safety of cash can be an illusion, potentially leading investors to lost opportunities and diminished purchasing power.