[quote=AN]Because although one might not want to time the market, one should also constantly assess risk/reward. This past election is one of those event where we can do just that. I went 95%+ in cash because there was a big uncertainty. It can go horrible wrong like the Brexit and the market can be down a lot. It’s always best to sit in cash and wait. Especially if the immediate upside isn’t as great. I did buy back into the market the day after the election, seeing that the 1000 point lost in early trading goes positive at opening bell.
This is very similar to people who sell their house in 2005-2008.[/quote]
You’re defending market timing. That’s beside the point… my point was if you don’t believe in market timing, you’re not going to change your mind just because someone made a good guess one time.
As far as housing in 2005, I don’t see that as a good analogy. The reason to sell housing then was that it was really, really overpriced. Valuations were such that long-term risk/reward was very poor. It wasn’t a market timing call, like what’s being discussed here.
