Top value investor Ron Muhlenkamp says he’s holding more cash than he normally would in a recovery, because of concerns about European debt, the U.S.’s balance sheet, and China’s tightening. But, he says the time to go all in on stocks may be nearing. “When we resolve this — if November 2012 comes out the way I hope it will and frankly think it will — I will probably put in my last nickel and borrow some money,” Muhlenkamp tells Forbes’ Steve Forbes. “We’re seeing there’s great opportunity out there on any premise other than the U.S. is resigning itself to going downhill permanently.” Muhlenkamp says he has about 20% of his portfolio in cash, and says he’s currently finding more value in higher-quality blue chips than he is in smaller, lower-quality stocks, a rare occurrence. Muhlenkamp also talks about his overall strategy, which involves looking for companies with high returns on shareholder equity, solid balance sheets, and strong free cash flows.