10 Smart Strategies for Navigating Volatile Markets in 2025

2. Keep Cash On Deck—But Don’t Abandon Ship

Cash is like a life jacket—helpful to have, but useless if you never go in the water. In 2025, money market funds and high-yield savings accounts are earning interest rates we haven’t seen in years. That makes keeping some cash handy smarter than ever. But here’s the big mistake: bailing on the market entirely and waiting for “the perfect moment” to get back in. History punishes that kind of thinking. Miss just the 10 best days in the market over 30 years, and your long-term returns get cut in half. Cash has its place: think of it as emergency money and dry powder for buying good investments on sale—not as a permanent hiding spot. A good move? Set aside enough to cover a few months of living expenses and another slice for quick opportunities. The rest? Let it work for you in the market. It’s about balance—too little cash, and you’re forced to sell at the worst time; too much, and your money sits on the bench while the game goes on.