2026-01-07 01:26:17

There is a classic saying in the investment world: Instead of obsessing over market ups and downs, it's better to use mechanisms to constrain yourself. The logic behind this is simple—human nature is prone to greed and fear, and a systematic approach can help you counteract these weaknesses.

Among these strategies, rebalancing is considered a secret weapon. The core idea is to force sell when the market surges wildly, and actively buy when it declines, always maintaining a balanced allocation of stocks and bonds. It sounds counterintuitive to human instincts, but that's the beauty of it—you are doing what most people dare not do.

This method is not just theoretical. Looking at real-world practitioners, in 2023 they began adjusting their portfolios, gradually liquidating holdings of U.S. Union Bank that they had held for years, while reducing heavy stock positions and shifting into government bonds. By the first quarter of 2025, cash reserves had risen to $347.7 billion. The total assets reached $1.16 trillion, with cash accounting for nearly 30%.

Even more astonishing, if we only look at liquid assets that can be flexibly allocated (cash of $347.7 billion + stock portfolio of $269 billion), the cash ratio soared to 56%. This is a historic high. Compared to the 2008 financial crisis, current cash reserves are even more ample—sending a clear signal: the market may be facing a correction.

The beauty of the rebalancing method is that it forces you to slow down when greedy and to bet when fearful. No need to predict the market—just follow discipline. Perhaps this is the secret of long-term winners.

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FlatTax

· 16m ago

56% cash holdings, really, what is this guy waiting for? If it were me, I would have done this a long time ago.

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CryptoHistoryClass

· 15h ago

*checks notes* ah yes, the classic "this time is different" copium right before the correction hits... history's playing the same tape again fr

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DataOnlooker

· 01-07 01:52

Whoa, 56% of the assets are in cash? What is this guy implying... is it about to collapse?

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LeekCutter

· 01-07 01:40

Here we go again talking about discipline, speaking lightly—how many can really endure? --- 56% cash and waiting—are you betting on a crash? --- Things that sound anti-human nature are impressive, but can you really stick to them in practice? I want to try. --- If it were me, watching others make money and still being forced to sell? Dream on. --- The logic makes sense, but the problem is most retail investors don't have that much cash to allocate. --- Historical high cash reserves do signal something, but it could also just be for defense, not necessarily for bottom fishing. --- Mechanisms constrain oneself; it's easy to say, but the hardest part is the mindset. --- Compared to discipline, what I need more is the vision to make money—do you have it? --- This rebalancing looks perfect on the surface, but the real test is whether you can truly place bets during extreme panic.

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DoomCanister

· 01-07 01:40

Cash ratio hits a new high of 56%? Is this guy really playing a big game, and is the market about to collapse?

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DustCollector

· 01-07 01:38

Yeah, you're right. Discipline is indeed way more impressive than predictions. --- Cash makes up 56%? That's a bit intense. This pace is really pushing the undervaluation. --- The most profitable things are anti-human nature. That's why most people will always be the majority. --- Rebalancing, to put it simply, is about telling emotions to get lost and letting the system do the talking. --- Wait, 347.7 billion in cash? Isn't that waiting for a good opportunity? I feel like a storm is coming. --- The problem is most people simply can't stick to it. They know it's right but just can't do it. --- That's why smart people are rigid, and rigid people make money. --- It sounds simple, but executing it is really a torturous task.

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BearMarketBro

· 01-07 01:34

Got it, it's about operating in reverse, selling ruthlessly when greedy, and buying stubbornly when panicking. Cash reserves at 56%—this data is really shocking, it feels like the big players are all waiting for some major event... Rebalancing? Basically, it's about self-discipline defeating human nature, but I still can't do it. 347.7 billion in cash—what are they betting on? Discipline is easy to understand but hard to achieve, brother. Mechanism to constrain oneself? I can't even stick to a half-month fitness plan without breaking it. Is the historically high cash ratio hinting at something, or am I overthinking it? It definitely looks like preparing for a big drop, otherwise why hoard so much cash.

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MEVSupportGroup

· 01-07 01:33

Cash accounts for 56%, which is basically a hint to watch your wallet closely. --- Rebalancing, to be honest, is going against human nature, but it seems like those who make real money are doing exactly that. --- 347.7 billion in cash reserves, more than the 2008 financial crisis? This is definitely preparing for an upcoming storm. --- The worst thing is knowing you should buy during fear, but feeling hopeless because you have no money. --- The phrase "mechanism constrains oneself" really hits home. It's easy to say but hard to do. --- For those still greedily adding positions, we'll soon see who is swimming naked. --- Cash makes up 56% of liquid assets... I’d say this is the smart money taking a short position.

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NFTFreezer

· 01-07 01:29

Damn, cash ratio is 56%, this guy is definitely playing a big game. --- Going against human nature is correct; that's the reason most people lose money. --- I just want to know, when will be that "fear-based" moment to place a bet. --- Discipline is easy to talk about, but only a few can truly stick to it... --- A new historical high in cash reserves clearly indicates waiting for an opportunity to strike. --- Rebalancing sounds impressive, but it requires extremely strong mental resilience. I simply can't do it. --- As expected, making money ultimately still depends on self-discipline. My broken mindset really has no hope. --- Mechanism constraints > market predictions. This statement is powerful, hitting the nail on the head.

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