Cash in stock funds?

“[T]he reason it catches one’s eye is that most funds aren’t allowed to take that course,” he adds. “Most stock-fund managers are required by their firm to be fully invested, or fairly close to it, at all times. Now is an opportune time to ask: Is that a good idea?”

When markets are rising, investors go for fully-invested funds, but in hard times, the issue gets murky, Wolper says. Dedicated advisors know their clients’ situation better than a fund manager, he says, and are better qualified to handle asset allocation.