The day of the election I moved the entire 401k to the fixed account. I avoid market timing but you could see the writing on the wall. The week before the election all the water cooler talk was about getting out of the market and playing it safe for a while. I think it comes close to being a self fulfilling prophecy. Then after you see a couple drops you get more people running for the exit and it starts to just feed on its self.
Now the trick is to know when to get back in. Best guess is at the start of the year I will move back in 25% at a time. For those of you buying on the dips what do you do when everyday is another dip?
