That's what tech investors did, and they were badly burned. Hold one-third of your portfolio in cash You need to maintain liquidity so you can get back into the market when it begins to recover in the late summer. Avoid the temptation to invest in municipal bonds and junk bonds. At the bottom of a bear market, these investments tend to become illiquid. You can't predict the market bottom with complete accuracy.
Investors stop chasing buying opportunities.
In a bull market, every downturn is met with extreme panic. Eventually they run out of cash for investment, and the buying slows. You have to see this sentiment reverse before the market hits bottom. Most forecasters turn more bearish. But we'd require a pretty big rally between now and the end of the year to achieve positive returns.