Joel,I (we) lost a ton of $$$ during 2000. But in 2007, AngelSpouse decided he would get out of the market. He told me what he was doing, but I stubbornly held onto my investments. Then...the market began to tank - just as he believed it was going to - and I began getting out. I believe I was out around June of 2008 and lost some money but not a whole lot. I believe my losses were less than $60K.In early March (March 6th to be exact) of 2009 I decided it was time to get back in. I hit it right at the bottom. It was sheer dumb luck.So I'm pretty much proof that you can't really time the market - win some, lose some. The thing is, you still have income coming in. When AngelSpouse and I were both still working we let everything ride the market ups and downs, too. But now that we are both retired, things look a lot different to us. We have not one single penny coming in (with the exception of that life-saver, Social Security) except from our investments. When you don't have anything coming in watching the market take away what you have is so scary I can't begin to describe it. You begin to panic. I always think I'm going to be a brave buckaroo, but I never am.Right now, I think the market is due for a correction. Possibly a huge correction. So I'm mostly out. I'm 1/3rd in stocks (funds and individual dividend payers), 5% in bonds (from one of the funds), and the rest in cash. Waiting. But I'm guessing, of course. Except that it's a guess based on a history of ups and downs in the market. When it goes up and up and up - it has ALWAYS come crashing back down enough to really hurt.I think what I'm saying is that it's not quite so hard to ride out the ups and downs when you still have money coming in from a secure job. But when there is zero money coming in and no job and you are well into retirement, things look a lot different. And a lot scarier. :)AM
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