Is it time to stop DCA and build cash? Looking for a value perspective on high valuations.
u/bakery_0726 ·
Reddit — r/ValueInvesting
· May 19, 2026 at 15:06
· ⬆ 17 pts
· 💬 70 comments
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AI Summary
Summary
The author is concerned about high market valuations (VOO, QQQ, NVDA) and considers pausing their daily DCA to build cash reserves.
They seek a value investor’s perspective on whether to stop buying, hoard cash, or continue DCA despite expensive multiples.
Quality assessment: This is a personal strategy question based on general market observations, not a well-researched deep dive — more of a sentiment check than rigorous DD.
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Hi everyone,
I’ve been strictly following a daily Dollar-Cost Averaging (DCA) strategy, buying into **VOO, QQQ, and NVDA** every single day.
However, looking at the current market, I can’t help but feel that broad market valuations—and mega-cap tech stocks in particular—are looking incredibly stretched. From a strict value investing standpoint, buying at these multiples feels like it's leaving very little margin of safety.
So I’m seriously considering pausing my daily buys and pivoting entirely toward building up my cash reserves.
I’d love to get your thoughts on this:
1 At what point do you decide that the market is simply too expensive to continue DCA, and that hoarding cash is the more prudent value play?
2 For those who are heavy in cash right now, what specific valuation metrics or market indicators are you waiting for before you deployment that capital back into the market?
3 Or, is trying to time the market with cash a losing game even in a high-valuation environment, and should I just keep buying?
Would love to hear how you guys are handling cash allocation in this current macro environment. Thanks!