Good question. Being FI and not needing anything, I probably look at investing and the world situation, in general, a bit differently than some people. My favorite investments are those with (1) guaranteed returns, (2) a high probability of a high return, or (3) something that looks like fun (that also might have a high probability of a high return at some point but isn’t necessary). The first category includes consumables that periodically go on sale or become deeply discounted. For example, when various foods, wines, toothpaste, motor oil, etc. go on sale, I’ll often buy a huge supply. It’s often a guaranteed 20% or 30% return. The second category includes properties, stocks, or things that I know a lot about but are more speculative in nature. For example, if I see a building site go up for sale that I strongly suspect is at least 20% or 30% below market value, I’ll often buy it, and then resell it or develop it for a significant gain. I can do this because I keep up with my local real estate market and I enjoy buying and selling real estate. If the stock market dropped 20% or more, I’d probably pull a fair amount of money out of a savings account and put it into an index fund like VTI. If it dropped 20% more, I’d probably pull more money out of savings account and do the same thing (depending upon what kind of events had triggered the drop and whether the reasoning of other investors seemed rational or irrational). I wouldn’t go all in on a market collapse because it seems obvious to me that we have numerous bubbles currently expanding (a government debt bubble, a personal debt bubble, a market bubble, a bond bubble, a dollar bubble, etc.) that will sooner or later pop big-time, and I would want to keep a significant amount of cash and coin available because I suspect that if one or more of the big bubbles pops, it could take 30 years to recover from. The third category includes things like a small farm in the country that might be fun developing, or a unique business venture, or some other fun activity that I’ve never before encountered. I would never try to time the market, but it always makes sense to keep enough liquidity available to take advantage of whatever unpredictable things might happen. It’s true that cash doesn’t generate much of a return (currently about 1.3%–2%), but most people who have attained FI aren’t too concerned about that; they usually have a majority of their assets invested in businesses, income-producing properties, and other “hard” assets.