Major institutional funds are quietly building cash reserves as equity markets hit record highs—a signal worth paying attention to. When the smartest money starts stepping back from stretched valuations, it usually means something's shifting beneath the surface. The playbook is classic risk management: accumulate dry powder while markets run hot, stay flexible when cycles turn. Right now, we're seeing institutional investors get more defensive. They're not panicking or abandoning equities entirely, but they're not chasing every rally either. Instead, they're sizing down exposure and loading up on cash—a tactical move that reflects genuine concern about current valuations. Whether it's inflation worries, geopolitical tensions, or just the reality that stocks have had an incredible run, the message is the same: complacency kills. Those who lived through previous market corrections know the value of having capital ready when opportunities appear at lower prices. The takeaway? When large pools of capital start moving to the sidelines during bull markets, it's not pessimism—it's prudence.