Cash serves a valuable purpose in many investment portfolios, but when the stock market dives, many investors turn to cash in a knee-jerk reaction to avoid losses. However, depending on the reason, moving all your investments from equities to cash may turn out to be a significant mistake. Even during a bear market, holding a cash-heavy portfolio may lose you more money than you realize. Instead, consider cash uses and allocate only a portion of your funds to this asset class. A financial advisor could help you rebalance your portfolio and select investments that align with your financial goals.