From 1969 to 1982, 13 years, the S&P traded sideways. Over the next 18 years, the S&P 500 climbed from 100 to 1,500. The 1982 to 2000 bull market move was the greatest in history. While an investor should not expect a repeat of the 15x performance, investors should remain invested in equities until there is strong evidence that the S&P 500 is not making another important bull move.
Since late May, investors have sold $78.3 billion from bond funds. They have only purchased $11.7 billion of stock funds. Much of the balance has gone into money market funds.
Over time, cash is not the answer. Inflation will deteriorate its purchasing power. Tactically managed equities provides the potential upside of the stock market with some measure of insurance in case the market suffers a significant bear period. We recommend gaining equity exposure through ETFs including PDP, RSP and DWAS.