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I wonder how many of the market timers who got out of the market this time before October 2007, also got out during mini-bear markets during the recent bull market. Before the market peaked.
Did they get out at every 2 month decline? If they saw it coming why didn't they get out then?
I noticed a study by a company called dalbar that showed individual investors returned around 3% when the market returned 12% because of market timing and chasing performance. google dalbar study
If you have a financial plan and have followed it then you should not have cash to invest because it would have been invested in the strategy you started with. Unless, you are rebalancing.
If you have been able to call the tops and bottoms of the markets then quit your job and invest for a living.
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