“Buy on the dips.”
Of course. With rates where they are today keeping any more than about 6 months expenses in cash makes no sense.
It depends on your age (and usually related) risk tolerance.
If I were young I would hold very little cash, and in fact would borrow as much as I could at the current low interest rates where they are available.
But—unfortunately I am older and cannot afford a stock market crash, so I have no choice but to be heavy in cash and cash equivalents—and of course I have no debt.
A dollar crash (and inflation of basics) would be very bad for me, so that is why I have a _big_ cushion of cash over expenses.