Buy Hold Rant
Cash is King: Smart Cash Strategy for Market Volatility
9/17/2025, 5:45:55 PM
Economic Summary
- The speaker targets roughly 20% cash in the portfolio as a strategic reserve to deploy into market corrections; historically held as much as >50% in 2021 when valuations felt rich.
- Cash enables buying power during drawdowns (notably used after the 2022 crash and an April tariff-driven dip), reducing the need to sell existing positions to fund purchases.
- Holding cash also serves as a personal liquidity cushion to cover living expenses for years, allowing the investor to avoid forced selling during downturns.
- The investor sells richly valued winners (examples: HOOD, RKLB) to raise cash, while retaining positions in names perceived as lower-valuation or core growth (examples: BMBL, RIVN).
Bullish
- Keep ~20% cash to quickly buy attractive opportunities during market corrections.
- High-dividend, defensive names (e.g., AT&T) provided safety during prior volatility.
- Avoid selling core growth names (e.g., Bumble, Rivian) despite rebalancing winners.
Bearish
- Certain high-valuation winners (e.g., Robinhood, Rocket Lab) are being sold to lock gains and avoid large drawdowns.
- Market feels overvalued, increasing risk of corrections and justifying higher cash allocation.
Bullish tickers
TBMBLRIVN
Bearish tickers
HOODRKLB
T
Bullish
Presented as a relatively safe, high-dividend holding used during 2021 to reduce portfolio risk.
HOOD
Bullish
Had large returns historically, but considered too richly valued to hold for more cash.
Bearish
Sold because valuation is high and at risk of large drawdowns despite large past gains.
RKLB
Bearish
Sold due to being on the higher end of the valuation spectrum and potential downside risk.
BMBL
Bullish
Considered a core holding the speaker would not sell to raise cash.
RIVN
Bullish
Also considered a core holding the speaker would not sell despite portfolio rebalancing.