It’s October 2025, and many American investors are holding record levels of cash, with much of it sitting on the sidelines in money market funds and high-yield savings accounts. This trend is less about avoiding all risks and more about managing opportunity costs, maintaining liquidity, and preserving flexibility in complex environments.[1] Holding cash brings its own risks, particularly with the weakening dollar. How much of this portfolio shift is based on fundamentals, and where might it reflect emotions or bias?

Why Is Cash Suddenly King?