Is now a good time to sell and move to cash?

A common question that people sometimes ask is: “Does it ever make sense to get out of the market, or at what point in time does it makes sense to get out of the market?” Today in Matt’s Minutes we discuss this concept by using an example of two different investors. One investor that rides the ups and downs of the market and then the other who gets out and misses the downturn and then back in when they are feeling more comfortable. This is an age-old conversation that people have had and will continue to have. Our advice has always been and will always be that getting out of the market only to get back in when they feel more comfortable is a 100% losing proposition. The reason is in Matt’s almost 20 years of experience he has never seen anyone effectively execute this. Periodically we have clients say that they know people that have been lucky enough to sell prior to a drop in the market and bought back in at the right time, but the key word here is LUCK. Luck is not a strategy; therefore, it should not be relied upon.