[j4coh]

Where does the cash come from if you’re invested? Are you just keeping huge piles of cash around in low interest accounts in the hopes that a black swan event comes along?

[cperciva]

If you had a balanced portfolio a week ago, you're almost certainly overweight bonds today. Rebalance to your target weights and you'll be buying equities.

[s1artibartfast]

Yeah. I have 5 years salary in cash, and know many people who also pulled out of the market over the last 6 months.

Hell, warren buffet is sitting on 350 billion in cash waiting for this exact scenario.

[j4coh]

Wow! Even with the crash, wouldn't you have been better off getting the last five years of gains, especially given interest rates didn't match inflation?

[j4coh]

I was curious, so checked - $500,000 in VOO 5 years ago would have been 1.18 million today - already accounting for the crash so far. The market would need to crash an additional 60% starting with the next open to get you back to your $500,000 break even. Maybe this will happen, but that's quite a fall.

[s1artibartfast]

I'm not saying I have been sitting on them for 5 years, just that they are in cash now. 10/10 agree sitting out the last 5 years would be a mistake.

[j4coh]

How do you know ahead of time when to pull it out?

[s1artibartfast]

You make a personal evaluation that differs from the market and you act on it. You need a model of the world and to believe it is more accurate than the average. A lot of people felt the market was overvalued and would correct during the Trump presidency.

[Izkata]

> Where does the cash come from if you’re invested?

The next paycheck. I don't go all in to one thing, but shift where it goes depending on what's generally going on.

[fmbb]

You of course sold all your stocks beginning of November because you knew a deep crash was coming and wanted to be ready to buy into it. And now you have a lot of cash.