I know this question gets asked here almost daily and the group leans strongly towards VOO and Chill. However, from a portfolio allocation standpoint, if the smartest investors such as Berkshire Hathaway are keeping a lot of cash for a downturn, why shouldn’t retail investors hold a bigger cash position now? See below article on Berkshire
https://www.wsj.com/finance/investing/berkshire-hathaway-greg-abel-cash-warren-buffett-73695061?mod=mhp
I am NOT talking about silly things such as selling all stocks or YOLOing into a meme stock, but tactically increasing cash allocation for 3-6 months after S&P 500 has gone up almost 80% cumulatively in the last three years.
Specially if you have new money now, would you invest all at once into S&P index at the current valuation or keep more cash position?
