"Cash is king," counsels market sector expert Jim Farrish who has chosen "cash" as his latest "sector spotlight". Here is his latest on the need for "patience" from his SectorExchange service.

The sector expert explains, "The market volatility and downside momentum has been king for 2008. Outside of short term trading and/or being short the markets the best place to have been invested is cash.

"My question is why is it so hard for investors to hold cash in their portfolios? Why do so many investment advisors not increase cash positions when market trends shift? Why do professionally managed mutual funds not increase their cash holdings?

"It goes against the psychological grain of investing. It is human nature to believe we may miss out on something. The emotions of investing are in full swing when a prolonged downtrend begins. These emotions dictate how we think and how we act during this period.

"The major market indexes are negative and have been since November. The trend remains to the downside and the establishment of new lows last week is another warning signal. We may be beginning the next leg of this current downtrend. We will see how this plays out short term, but the warning shot has sounded.

"While many investors struggle with owning cash it has been the place to be in 2008. Looking forward is the challenge currently. There is no real reason to believe the worst is over fundamentally for the broad markets.

"The economic data remains on the negative side. Inflation is looming based on the cut in interest rates from the Feds. The dollar continues to tumble contributing to the rising cost of oil. Commodity prices continue to rise putting additional pressure on both the consumer and the economy. Earnings are being revised lower. And the list goes on.

"The challenge is patience, and having enough to hold cash sit on the sidelines and let this train pass. Once it is past the opportunities will be amazing and you will have the cash to take advantage of them. So our strategy is simple – have enough patience to hold cash and wait for the opportunities."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.