My view is that we are certainly closer to the top of the cycle than the bottom. But I am reminded of two quotes:

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” Peter Lynch's

And

“Prices are too high” is far from synonymous with “the next move will be downward.” Things can be overpriced and stay that way for a long time . . . or become far more so.”  Howard Marks

I personally tend to think that market timing is a mug's game. As Buffett once said, “I don’t know anybody that could time markets over the years…”

So what do you do?

For me, it's all about ensuring you have invested in businesses that can weather any storm -- most notably with managable debt. I'm also loathe to use any leverage at this stage of the cycle.

At present, I'm favouring stocks that have good offshore exposure as I think the Australian market/economy is more fragile than most other developed nations (due largely to record high household debt). That way, should we suffer a setback here, these businesses are less exposed, and will likely get an added boost from a weaker currency.

That being said, I'm presently about 20% cash as I'd like to have some dry powder should better buying opportunities arise.