I would reserve whatever you need to weather a crash and put the rest into the SP500. The key is not to have to sell if or when the market crashes then wait for it to recover.

Learning from experience. Over the summer I put too much into tech stocks and market rotated out of tech and I lost most of my gains and had to sell some at a bad time. But if I had reserved more in cash, I wouldn’t have sold and I wouldn’t have lost anything as it came back up and went even higher.

Same thing happened in December with tech rotating out losing 10 percent but this time I had 20K in cash so didn’t sell. And now within the last 3 days it all came back up.

Going forward as the SP500 keeps increasing, there is a higher chance of a crash, so I will need to increase my cash by profit taking. But it’s very hard not to be greedy with the big stock returns lately.

I don’t think it’s wise to wait for a correction or crash to get in. I missed two years of gains because I was waiting for a correction that never happened.