History Says the S&P 500 Will Make a Big Move in 2026. Here's How Warren Buffett Is Preparing.

Warren Buffett has long advised against market timing. After all, over time, markets tend to go up. Every time you take your money out of the market, therefore, the odds say that you'll be missing a profitable day. But all of this doesn't mean that Buffett stays fully invested all of the time. In fact, right now, Buffett's portfolio is more cautiously invested than it has been in decades. With a record $381.6 billion in cash, roughly one-third of Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) entire market cap is now tied up in cash.Buffett isn't just holding on to record amounts of cash. He's also selling down some of his top holdings. And last quarter, he refused to repurchase any Berkshire stock -- a practice he has often done in recent years.It's not hard to see what is making Buffett so nervous. Just look at the S&P 500. Based on three different key metrics, the stock market appears grossly overvalued -- a possible warning of a coming market correction.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool