I will be contrarian and unpopular. don't time the market is the soundest advice but...... I moved all my 401k an Ira monies out of stocks an into money markets yesterday and will keep it there until after the election and/or a 10% correction. I am willing to forgo any gains that may occur during that period because I feel the risk vs reward is unbalanced at this point. Too much uncertainty: outcome of election, will fed raise rates, etc.
Terrible idea. The market is going to drop 70% minimum, so you're going to take a 60% loss. Hold out.
Or consider why you think 10% is the magic number? Was 10% the magic number 3 months ago, 6 months ago, 1 year ago, 2 years ago, 5 years ago, etc.? We've had over a 200% increase in the market since February 2009. Does a 190% increase seem more fundamentally sound, and then ready to get back in?
I get the concern, but sometimes you've really got to logic these things out. Human behavior is a problem that way. And I'm not picking on you in particular, just highlighting some of the flaws in the reasoning that many here suffer from--because they're human.
If you're not sure, think about how confidently you're going to move all 100% of your portfolio back in on a 10% drop. Or do you think maybe you'll consider "dollar cost averaging" and seeing where the market goes from there. If so, you can see how quickly market timing behavior devolves into just guessing.