Mike, good discussion. As you suggest, it is based on the individual and their risk tolerance. People who get nervous and sell as the market drops will struggle holding stocks as it is more of an emotional game than a knowledge one. Cash can be a good option for several reasons, and everyone should always have some cash around in case things get bad. Both to survive if they lose a job/business and for opportunities. One way to think about it is instead of trying to time the market, try to value the market. If the market is overvalued, buying stocks may not be the best option. But when the market is undervalued, then putting that cash to work is likely a good idea. You won't ever catch the bottom, so you have to be prepared for it to continue dropping, but if you buy for a good price, you will make money in the long run.