Charles Schwab wants you to dump stocks in favor of cash about as much as a dentist wants tooth decay to be eradicated.

They are covering their asses with that forecast.  I would be surprised if there are many investors with Schwab that have over a million in assets invested with them. Its a discount brokerage. So to say "Move 5% to cash" and let the other stuff ride on in the market is ridiculous.  

Lets say I have 1 million total in my portfolio, I move 5% (50 grand) to cash, the rest 950K in World Com, K mart, Enron stocks (you know..stable investments like THOSE were)….they are all shakey in my opinion its totally over valued, but the market tanks like she describes could happen in that treatise, ……NOW what ? 

So I got 50G's left of my former 1 million in total portfolio of capital investment ? What the hell is that ? Who could possibly feel good about losing 950K (or there abouts) on foolish pumped and dumped stocks?

So you have 50 K left ? So what ? How long could you live on that ? 

Like I said before, HOW MANY HUGE investors are trading with Schwab to give that kind of advice any meaning ? Very few I would imagine. So it gets filed in the round file for quality advice. Good numbers, good research, bad advice. Its takes a lot of money to MAKE money in the long run of stock markets. Ask Futures traders how hard and risky it is in reality.