That strategy is called timing the market. It almost never works. No one can tell when a correction will happen. The government may continue with infinite stimulus and you’ll miss out on the chance to stay even with the inflation this causes.
If you look at how the big players do it, they keep a significant cash reserve and then buy more on the dips. If you sell at a high, you owe capital gains taxes which is huge hit when it comes to reinvest because you are investing significantly less money. Balancing the loss from the market going down versus the amount you lose to taxes when you cash out, means the stock has to go up much more to recover not only from the drop, but from the tax loss.
The best strategy for those of us not actually in a position to know anything is to buy well-run companies with a solid looking future and hold on to them until you must sell them. It’s a good idea to keep cash on hand so you don’t have to sell something on a dip to pay your mortgage.
Well run companies? GE, IBM, GM were all well run companies. May be still are. But their stocks have been lagging hot stocks like Amazon, Tesla & many others.
Thanks all!