Post #4361 by rayvt on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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The only thing to remember about moving to cash is that it works extremely well, if and only if you have the nerve to deploy it when there is a rich opportunity set.

The people who go to cash when they get scared, and then sit out the crash .... also stay scared at the bottom and don't get back in for the boom.

In a long ago thread on an old TMF board, somebody said "Nobody will stay invested during a 50% downturn." That was in a debate/discussion about Indexed Universal Life insurance.

About a dozen people commented back "No, I sat tight through two 50% loss bear markets."

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