Warren Buffett once told investors to be "fearful when others are greedy and to be greedy only when others are fearful." That's why it was alarming when Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) started selling a lot of its top positions -- including Apple and Bank of America -- in recent months and boosted its cash holdings to a record high.

That shift suggests the market is getting overheated and heading for a pullback. That wouldn't be too surprising, since the S 500 only trades about 3% below its all-time high and looks historically expensive at 22 times forward earnings.

Image source: Getty Images.

Continue reading

Source Fool.com