No, you're not dumb for holding some cash/CDs/other liquid equivalents. But make sure you're getting at least 2% interest at Ally/Marcus/one of the other online

No, you're not dumb for holding some cash/CDs/other liquid equivalents. But make sure you're getting at least 2% interest at Ally/Marcus/one of the other online banks. That said, I wouldn't go 100% cash, even if you think it's going to crash in the next year - the Fed can probably keep the music going a lot longer than you think it can. I'd set up an asset allocation and stick to it. Here's a rather conservative one, if you're worried: https://portfoliocharts.com/portfolio/golden-butterfly/ https://portfoliocharts.com/portfolio/golden-butterfly/ Or this one, based on Bridgewater's All Weather portfolio: https://portfoliocharts.com/portfolio/all-seasons-portfolio/ https://portfoliocharts.com/portfolio/all-seasons-portfolio/ I'd try to understand them before you choose one, though - your asset allocation is one of the most impactful investing decisions you'll ever make. Gold is very divisive, for example, so if you want to go with one of these that includes it, I'd understand why. (It's unproductive, but it's generally anti-correlated with a lot of other assets, which is increasingly rare, and can be very helpful when rebalancing).