One investor recently turned to Reddit’s r/stocks community with a simple but revealing question: “What percentage of cash are you holding now?” With markets pushing new highs and macro risks looming, he explained he was sitting on 25% cash, citing high price-to-earnings ratios, global tensions and general unease as his reasons for holding back.
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The thread drew comments from people across the investing spectrum. Some were fully invested, others had pulled out almost entirely. The most commonly cited ranges were between 0% and 5% for long-term investors, and up to 50% or more for those bracing for a downturn.
“Emergency fund only,” one top commenter said. “There are always risks and you miss out on a lot of potential by sitting on the sidelines. Most people fail in trying to time the market like this.”
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Another added, “I'm about 80% cash… I know I'm an idiot statistically speaking. Timing the market is bad. I get it. But damn it. I watch our government behave like children and freak the f out.”
Some users held cash strictly because of interest rates. “Cash is paying 4.2%, and many mortgages are locked in at less than that,” one person noted. “The opportunity cost of avoiding what appears to be a teetering market is pretty low.”
Others stayed aggressive. “I don't keep cash lying around, that's a waste of resources. You need to be in the market,” a user said.
Still, many agreed that the market feels unusual right now. One wrote, “If things aren't objectively risky right now, then when? Risk should have tanked this market twice over, but everything gets shrugged off.”
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Some admitted to recent panic selling, missing rallies, or simply feeling confused. “I pulled out in February/March before Liberation day, convinced the sky was falling… then got back in once most of it recovered,” a commenter said. “I'm sure all I've done is incur tax events, but I know I'm not unique in this monkey behavior.”
Several mentioned they were holding 10% to 30% cash as a buffer or “dry powder.”
A number of investors pointed out that short-term Treasuries, high-yield savings accounts, and money market funds were offering 4% to 5%, giving them less urgency to jump back into equities. “Why not get 4.5% on your emergency fund that's sitting around doing nothing in a savings account earning .01%?” a person asked.
Not everyone was anxious, though. “Zero. It's bull market time,” one said. Another added, “0% cash. I have no clue what's going to happen… I’ll keep putting money in every paycheck.”
One of the more reflective voices concluded, “Don't underestimate how much crazy sh*t and risk is already priced in. A lot of people, myself included, would rather hold and have the market dip than sell and watch it pump.”
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