[Huskymaniac]

I am in cash right now waiting for a direction. I jumped in a variety of mutual funds when we had the correction last summer. I got in when the S&P went below 1040. I rode it up and sold when it crossed below 1260. I am actually in inflation protected securities to hedge against inflation. If I had the option in my plan, I would go with a blended precious metals ETF that physically holds the metals.

I am on the fence as to whether or not this is a correction to the most recent bull market (starting in March 2009) or the start of the final wave down of this secular bear market (starting in 2001). If the S&P goes 20% below the peak of this bull run, intraday, and then closes above it, I will gamble that it was a correction and jump in with tight stops. If it climbs back above 1270ish (moving number) then I will jump back in and assume we had a correction and I missed the bottom. If it drops and closes below that 20% number, I will stay in my "safe" position and start calculating the bottom for this final bear market wave. I expect that to be below the 2009 bottom, corrected for inflation.