[nitwit005]

If everything seems too expensive, and you're confident enough the prices will go down, you should just hold cash and wait.

[saulpw]

This is specious advice. Never hold 100% anything.

Especially cash. Maybe/likely the US Fed will pump trillions of new dollars into the economy in random places and cause massive inflation.

So let's say we hold 25% cash, or even 50% cash. We still have to allocate the other 50-75% somewhere. Where?

[rchaud]

Allocate it to a bank account with deposit insurance and go long on "peace of mind". Losing 3-5% of purchasing power over 12 months' time is better than losing 15% or more in an overnight crash and have to wait for the government to intervene and prop values back up.