No. of Recommendations: 19
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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