I don't blame people for being cautious or safe, its just they aren't remembering their timeframe. Further, I don't think they really know what they are doing. Too many people make allocation mistakes and this is a time where it could hurt them. I know of too many people that say they are investing in the market and with the money they will use it as a down payment on a house or car. If the market goes well, they get a nicer pad or wheels. Yeah, great logic there!!! If they had any sense they would be in bonds or cash with that money. Then they have the other pile that is for retirement 20 or 30 years off. Why sit in cash? They are in cash because they want the market to get cheaper, but who are we kidding? These people are experts of what is cheap??? Its simple, figure out what horizon you are looking at and invest accordingly. If its short term, stay out of the market. If its medium term, balance your money out. If its long term, focus on stocks. Simple advice that everyone hears over and over, yet conveniently ignores. If you have a good understanding of the market and are a rational person that doesn't bet half your wealth on one or two growth stocks, then go ahead and try to work deeper on your strategy. However, for 95% of the public, this isn't true and they should just invest it and forget it.