There have been six major bear markets over the past 80 years. The average decline in the Dow Jones Industrial Average of the previous five disasters - from peak to trough -was 43%. We're a lot closer to the bottom than the top.
With the Dow Jones up more then 400 points overnight, a lot of people are now confident they can pick the bottom. They run afraid of sitting in cash, collecting a pittance, when the market starts to rally again in earnest.
If you hate to hold cash instead of stock, you may consider most boring cash rich index stocks with generous and sustainable dividend distribution. And, always, set you cut lost level before hitting the buy button.
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