Originally Posted by
Daly
Generally speaking I do agree with this but if it’s obvious the market is going to crumble I don’t see a big issue with pulling out of stocks. I’ve done this multiple times over the years and been completely wrong but so long as you get it back in and working it’s not the worst thing in the world.
Best thing I ever did was sideline everything in mid 2007..... that one decision has reaped me a lot of benefit.
The problem with this is it’s often not obvious when the market is going to crumble, and also equally as difficult to tell when it’s done crumbling. When factoring in human emotion into the equation it becomes that much more difficult to get it right consistently.
That said I do agree it can make sense to keep some money in cash/FI as “dry powder” for when you think they is a good buying opportunity. But by and large trying to time the market for long term investing is a fools errand.