Well poorsaver, you are among a very prescient minority. poorsaver, Good on ya. Your friends must be all those well healed buyers sdrealtor is talking about.

As to sideline cash, I like Mish but that isn’t an accurate portrayal. More cash comes into the market as stocks are rising and people put money in to buy stock from someone who paid less. The difference between John who paid 20/share and Jim who paid 50/share for the same stock later is the new money entering the market.

The question becomes what happens to all that cash when the market starts decline and the fear sets in? Short answer, it departs. Sure for a while it sits on the sidelines, but in many cases people take it off the sidelines after a bit to do something else with it, like buy an overpriced house.

I wouldn’t expect the market to suddenly turn around. Even assuming there is a large pool of sideline cash (other than under the feds printing press) it won’t be deployed en masse anytime soon. That is excluding bear market rallies. If you want to be a long term value investor thats cool. You’d better lengthen your term.
Josh