The past few years have been a wild ride for investors. 2008 was the year of the crash and the broad markets fell anywhere from 30-50% during the year. 2009 didn't start out much better and stocks continued to fall until March 9th. On March 9th the markets rallied anywhere from 40-60% over the next year. While this rally didn't erase all of the losses we saw in 2008, it has eased the pain a bit if you still have money in the market.
The problem is that many people began to pull their money out of the market in late 2008 or early 2009 after finally having enough. In hindsight, that was probably a bad idea since that money then missed out on the rally over the next year. This is why it's a dangerous game to play when you feel you're able to time the market by jumping in and out. Usually, by the time you are ready to pull out during a down market the damage has already been done, and then by the time you're ready to get back into the market the rally has already passed you by.
We don't have a crystal ball to tell us what the next year holds, but that doesn't mean you need to be left in the dark. In a bear market there are some strategies you can use to minimize the damage. If the economy and uncertainty of the market has kept you out completely and you aren't ready to jump in just yet, you can actually get started investing with just a small amount of money. Either way, the market will continue moving with or without you. It's up to you to decide how to navigate it.