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Is Cash Still King? Does a Coming Equities Correction Mean You Should Hold More of It?

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There is an old investment adage that cash is king. At the recent Berkshire Hathaway annual meeting, a money manager said that he had his clients "30% in cash" and was contemplating moving that percentage to as much as 50% in anticipation of what he sees as the inevitable correction in equity values.

Now, there is little doubt that in the coming years that there will be a significant correction, defined as a 20% or more drop in equity prices.