There is strong evidence that to acheive the best return over the long-term, investors should keep their money invested, rather than try to avoid losses by moving into cash.

There is usually a cost when money is moved and it is very difficult to get the timing right.  There is a risk that by holding money in cash, the investor might miss a good day on the markets that cannot be caught up.

For example an investor in the FTSE All-Share index would in the 15 years to 31 August 2008 have made 205.48%.  Had that same investor missed just 10 of the best days, he or she would only have made 101.16%.

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