Cash Is Still King

Institutional investors continue to trim stock positions. A post-Buffett Berkshire Hathaway is adding to its hoard of T-bills.

But retail investors? They haven’t gotten the caution memo.

Following their robotic “buy any and all dips” policy, retail investors now have an incredibly low cash allocation today, of about 14% of assets:

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Retail investors programmed to buy any market dip are running low on reserve cash. (Source: i3 Invest)

Retail investors learned they could successfully buy the Liberation Day drop last April. But that was a 20% broad-based sell-off, a single event.

Today is a different year, a different setup. Retail “buy the dippers” are going to struggle in a market near all-time highs that is also rotating out of the AI trade.

Hold some cash to find bargains during a broader, sustained correction.

~ Addison

P.S. Thank you if you joined us on Friday for a special Grey Swan Live! from inside the Rarcoa Vault in Chicago. The reserved Silver Eagle set we had reserved was quite popular, and just a few more remain.

Grey Swan Live! returns to its regular time this week, 2 p.m. ET on Thursday.

John Robb, author of Brave New War and Grey Swan Investment Fraternity contributor, joins us for a discussion on the war with Iran, how it’s being fought, and what it means for the dollar and other assets.

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With market volatility on the rise and a new set of global challenges arising from this conflict, you won’t want to miss out on this week’s Grey Swan Live!

Robb’s expertise on network warfare is central to understanding the Trump strategy for disrupting operations by killing 40 top Iranian leaders. In a globally-connected tech economy in the 21st century, the strategies and weapons of warfare are evolving rapidly.

Institutional investors continue to trim stock positions. A post-Buffett Berkshire Hathaway is adding to its hoard of T-bills.

But retail investors? They haven’t gotten the caution memo.

Following their robotic “buy any and all dips” policy, retail investors now have an incredibly low cash allocation today, of about 14% of assets:

Turn Your Images On

Retail investors programmed to buy any market dip are running low on reserve cash. (Source: i3 Invest)

Retail investors learned they could successfully buy the Liberation Day drop last April. But that was a 20% broad-based sell-off, a single event.

Today is a different year, a different setup. Retail “buy the dippers” are going to struggle in a market near all-time highs that is also rotating out of the AI trade.

Hold some cash to find bargains during a broader, sustained correction.

~ Addison

Grey Swan Live! returns to its regular time this week, 2 p.m. ET on Thursday.

Turn Your Images On

With market volatility on the rise and a new set of global challenges arising from this conflict, you won’t want to miss out on this week’s Grey Swan Live!

Oil prices opened significantly higher in overnight trading, following a weekend of news about shutdowns in Saudi Arabia and the bombing of Iranian oil infrastructure.

Through the first 41 trading days of 2026, the S&P 500 traded within a 2.7% range — the narrowest start to any year since 1928. The first 41 days of 2008 spanned roughly 35%. In 2020, the range ran near 15%. Even the placid 1950s never opened this tight…

Since the Iran attack began, global markets have been chaotic. Despite some wild intraday swings this week, the U.S. stock market has held up well. When bombs go flying, capital moves from frontier markets to safer shores. And even though the U.S. has been the one to aggressively move against Iran, capital that was going to foreign markets has shifted back to New York.

Ever since the re-election of Trump, the blue tribe has been searching for another event it could use to repeat its success with BLM. They thought they had finally found it with ICE (its enforcement actions produce numerous excesses it could exploit).

Oil prices opened significantly higher in overnight trading, following a weekend of news about shutdowns in Saudi Arabia and the bombing of Iranian oil infrastructure.