What if the market gaps down on you?
In 1987, you wouldn't have been able to sell when the market dropped to your number, because the market opened well below it. You could well have a day where the DOW opens 2000 points lower than where it closed (Imagine a horrible scenario like Fannie and Freddie defaulting and the government NOT backing their bonds).
You can't remove the risk of losing a lot of money in the stock market without removing most of the upside too.
All you can do is try to buy solid businesses at good prices and hope for the best.
In 1987, you wouldn't have been able to sell when the market dropped to your number, because the market opened well below it. You could well have a day where the DOW opens 2000 points lower than where it closed (Imagine a horrible scenario like Fannie and Freddie defaulting and the government NOT backing their bonds).
You can't remove the risk of losing a lot of money in the stock market without removing most of the upside too.
All you can do is try to buy solid businesses at good prices and hope for the best.
All great points. On the last point, that its true. But isn't that superior to possible financial ruin at what feels like a highly risky time in the market? (I see Financial institutions tanking and read there may be much more in losses to come.) May a little dirty but very simple market timing be in line?