I guess I wasn't clear. I am allocated between INTL stocks, stocks and bonds. In 2008, a portfolio like mine would have dropped about 30%. I did not intend to imply that all equity investments was my plan, I was only addressing the question of how I alter my target number to account for market cycles.
Ahhh, I see. Above it appeared that a 30% market drop = 30% portfolio drop. You're really saying a 50% market drop = 30% portfolio drop, which makes more sense.
I do this too, but not to that extreme. Personally, I am (was?) factoring in a 30% amount market drop, which is an 18% portfolio drop with a 60/40 portfolio. And then I figure if it drops any further than that, I'll cut spending but wouldn't need to up to that point.
However, with the current market action, I am already rethinking that buffer, since we're (likely) seeing some of that 30% drop right now.