During the last stock market run-up during the late 90s we piled up cash as there was very few inexpensive stocks. When the bottom fell out we bought. We never sold those stocks.Hey, if this strategy works for you, my hats off to you. Definitely not for the faint-of-heart. Did you use the same strategy going into the crash? If so, you must have taken a massive haircut, if not then let me borrow some of your horseshoes .
As the stock market recovered and started climb again, cash piled up as there was nothing inexpensive to buy. Now that the bottom has fallen out (again) we are buying (again). We don't plan to sell these stocks either.
You can view our performance at the link in my sig.
The cycle of boom and bust is well-documented but most people can't seem to build wealth because only 1% believe in value investing and portfolio concentration; and those 1% are genetically determined (since the belief can't be taught). In other words, 99% of the population creates opportunities for the 1% on a fairly predictable schedule. There are no horseshoes involved. Investors like myself depend on the population as a whole to create wealth for ourselves.