After managing investments through different market cycles, I’ve moved away from being fully invested ***100%*** of the time.
I now keep ***15-25%*** of my liquid capital in cash or short-term Treasuries. This allows me to deploy capital during meaningful dips without having to sell existing holdings at a loss, and it also helps me stay calmer during periods of high volatility. Being fully invested felt like the disciplined approach for a long time, but in the current environment with stretched valuations and increased uncertainty, it started to feel more like unnecessary risk.
Curious how others are handling cash allocation right now. Are you staying almost fully invested or keeping a decent cash buffer?