I guess if you are in full panic mode, you could just decide to dump everything. If you are slightly less panicky, you could realise that even losing 10%, IF you’ve been in for a couple of years you still come out ahead, so you could simply decide to dump everything if the market drops 1000 points.
Problem is most people hate to sell out after that first 1000 point drop.
And nobody can really figure out where the peak is. If they could, there would be no peak.
Remember, if everybody knew where the market would end up tomorrow, it would already be there today.
Tomorrow is just your future yesterday.
“If you are slightly less panicky, you could realise that even losing 10%, IF you’ve been in for a couple of years you still come out ahead...”
And that’s the key. No need to panic as long as you have enough in there and it’s been kicking around awhile, even a drop won’t kill you. I feel pretty ok about the trajectory, even if there’s a major correction.