No. of Recommendations: 1
What I was referring to is when we are in prolonged bear market - as in declining for consecutive months over a good length of time. Since I will be making regular monthly contributions, I felt it'd be more Foolish to put the contributions into fixed-income-type funds, and once the bull market comes back (again, this is determined over periods of months, not looking at daily charts), I'll resume monthly contributions toward equities portion of the portfolio.

Sounds reasonable, but it may not work out in practice. Often the reason the market is declining is because the Fed has decided to raise interest rates. In this case, bonds decline as well. Very short term bonds or money market is the best place in that instance.

It was several years ago when this happened. I remember talking to some bozo financial advisor at Citibank at the time. He had put his clients into bonds and kept them there while the Fed raised rates. Of course, his clients lost money. Worse yet, he seemed puzzeled by the whole thing. I hope he is doing something else now, like selling socks.
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