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Post by Chahta on Apr 11, 2022 23:26:05 GMT
I am curious what everyone is allocating to cash.
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Post by fishingrod on Apr 11, 2022 23:35:19 GMT
I have roughly 10+% ready cash. Which is way too much. Thank goodness it is making at least .60% I see one of my credit unions have 5 year CDs at 2.50% APY now.
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Deleted
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Post by Deleted on Apr 11, 2022 23:50:05 GMT
5% actual cash - earning nothing. 11% G fund - earning 2.5% as of April.
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Post by richardsok on Apr 11, 2022 23:54:04 GMT
40% cash today. Real estate sale closes Thursday morning, which will bring cash much higher and debt to zero.
Can't post much while engaged in the move and sale. Hope this will be over very soon.
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Post by oldskeet on Apr 12, 2022 0:02:37 GMT
Old_Skeet is currently 26%.
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Post by mozart522 on Apr 12, 2022 0:02:55 GMT
I have all but my I-bonds in cash; 90% and I'm not worried about when to get back in or losing purchasing power as I watch stock and bonds decline almost daily. The FED is going to need to put a big hurt on both bonds and equities to get inflation under control, and COVID may well continue to depress the supply of goods people want and businesses need. I see little chance that this doesn't end in recession. But, like Pascal's Wager, if I'm wrong I will lose some level of investment opportunity. If I'm right, I'll save a huge decline in my portfolio, and be able to buy at rock bottom prices. Just my opinions and what I choose to do now.
Someone with 10% cash only at this time might be a dedicated dividend income investor, likely in individual stocks or high dividend yield equity funds. This works well for some and they keep adding shares at lower prices in a decline so the income keeps growing. Those with traditional 50/50 portfolios may get a deep haircut. I'm comfortable at about 40/60 in most environments, but the FED has all but said it is going to hurt both the bond and equity market and I won't fight the FED.
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Deleted
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Post by Deleted on Apr 12, 2022 0:07:37 GMT
Mozart - I want the full debrief on your strategy after "we" get through this tightening cycle.
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Post by Fearchar on Apr 12, 2022 0:31:23 GMT
61.43% cash in my own accounts.
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Post by Mustang on Apr 12, 2022 0:53:19 GMT
13.5%. Only because I sold a house and haven't done anything with it yet. Normally its around 5%.
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Post by nobhead on Apr 12, 2022 1:04:52 GMT
36% and plan to go higher. Making nothing but losing nothing either. Capital preservation is main goal now.
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Post by Capital on Apr 12, 2022 1:15:36 GMT
I'm not really allocating to cash - just letting it sit and rest for a spell.
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Post by fred495 on Apr 12, 2022 3:25:15 GMT
Not sitting on the fence anymore. Today, finally capitulated and sold FMSDX and JHQAX. Portfolio now 80% in cash. Remaining 20% is in PVCMX and FSRRX.
In the current market environment, and as a retired investor, preserving capital is more important than seeking return on capital.
Good luck,
Fred
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Post by racqueteer on Apr 12, 2022 11:29:28 GMT
Other than the equivalent of 10% in I-bonds and an unknown amount in assorted funds, there is another 53% in actual cash. I don't see any "opportunity cost" loss potential in the foreseeable future.
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Post by Chahta on Apr 12, 2022 12:16:19 GMT
I have never been this high, 15% cash, before. I am considering adding to cash but I am worried about getting back in if I sell any equities. All my cash is for bond allocations.
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Post by uncleharley on Apr 12, 2022 12:18:40 GMT
I had a lot of cash on hand but yesterday I used it to short the Q's.
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Post by FD1000 on Apr 12, 2022 13:25:08 GMT
Generally, 99+% in cash for weeks and now. When my indicators hit the high risk zone, I'm only allowed to make ST trades.
This is exactly what I have done, made several ST trades(several days) and was invested at that time up to 80%.
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Post by shridog on Apr 12, 2022 16:00:43 GMT
Cash is 4+% right now. Not investing anymore dividends. Total portfolio up 0.6% after expenses YTD. Income is 4X what is needed to maintain our spending. Portfolio heavy in BDCs, Preferred, and Pimco suite of CEFs. Retired, 80 years old, decent health, and trying to figure out how to spend more (HHH).
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Post by anitya on Apr 12, 2022 19:14:11 GMT
The Fed wants less liquidity in the financial market place, telling all participants to sell everything. In other words, increase cash / cash equivalent holdings. The difficulty is cash keeps growing in people's bank accounts because they are employed or otherwise earn new money. So, the market place will get to a equilibrium at some point. The process of getting there is going to be interesting, given the biggest participant is way behind in selling.
I sold almost all of fixed income and almost all of non-PRWCX allocation funds. Highest level of cash, ever, even more than when I sat on cash for 10 years to buy a house.
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galeno
Commander
KISS & STC
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Post by galeno on Apr 12, 2022 19:19:50 GMT
We start the year with 5% cash. Since 2006.
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Post by oldskeet on Apr 12, 2022 20:27:30 GMT
I had a lot of cash on hand but yesterday I used it to short the Q's. Looks like your short position in QQQ is working, or at least it did today.
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Post by steadyeddy on Apr 12, 2022 21:21:50 GMT
I have never been this high, 15% cash, before. I am considering adding to cash but I am worried about getting back in if I sell any equities. All my cash is for bond allocations. I share the same dilemma. Not selling anything. 35% cash.
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Post by steadyeddy on Apr 12, 2022 21:26:35 GMT
Not sitting on the fence anymore. Today, finally capitulated and sold FMSDX and JHQAX. Portfolio now 80% in cash. Remaining 20% is in PVCMX and FSRRX. In the current market environment, and as a retired investor, preserving capital is more important than seeking return on capital. Good luck, Fred fred495, may I ask you at what % loss level you capitulated and sold? That is my dilemma.
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Post by johnsmith on Apr 12, 2022 22:55:41 GMT
5 years of expenses in cash, is that too little?
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Post by mozart522 on Apr 12, 2022 23:06:44 GMT
I have never been this high, 15% cash, before. I am considering adding to cash but I am worried about getting back in if I sell any equities. All my cash is for bond allocations. Why are you worried about getting back in?
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Post by Chahta on Apr 12, 2022 23:10:06 GMT
I have never been this high, 15% cash, before. I am considering adding to cash but I am worried about getting back in if I sell any equities. All my cash is for bond allocations. Why are you worried about getting back in? I am a terrible timer.
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Deleted
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Post by Deleted on Apr 12, 2022 23:13:51 GMT
5 years of expenses in cash, is that too little? The average bear market is 10 months long. The longest bear is 5 years and 1 month. Of course, that is not predictive of anything, but I say the odds are in your favor for your cash to outlast whatever doom and gloom lies ahead.
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Post by mozart522 on Apr 12, 2022 23:19:49 GMT
Consumer debt in February rose to the highest level in a decade. And this was before the huge gas runup. Inflation and low interest rates are forcing people to use plastic to pay for things they need. At some point, if this keeps up it will cause a drop in overall spending which is just one more potential factor in a potential recession in the next year or so.
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Post by mozart522 on Apr 12, 2022 23:35:50 GMT
Why are you worried about getting back in? I am a terrible timer. Most of us are if we are being honest. But every decade or so things align in such a way that the odds of holding successfully seem low. This is one of those times for me. My ex-funds are already down about 14% on average, so any time I get back in I'll be ahead. I'm just too old to risk losing 30+% of my portfolio. What seems different here is that both bonds and equities are stinking out the place. Back when I could rely on 5-6% intermediate bond yields, I was more tolerant of ST equity losses. Just my take.
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Post by fred495 on Apr 12, 2022 23:36:23 GMT
Not sitting on the fence anymore. Today, finally capitulated and sold FMSDX and JHQAX. Portfolio now 80% in cash. Remaining 20% is in PVCMX and FSRRX. In the current market environment, and as a retired investor, preserving capital is more important than seeking return on capital. Good luck, Fred fred495 , may I ask you at what % loss level you capitulated and sold? That is my dilemma. The Fed, according to the minutes of its March meeting, is now talking about significantly accelerating the pace of raising interest rates and unwinding its huge balance sheet of Treasuries and MBS. FMSDX and JHQAX were two of my favorite funds, but as losses kept piling up, I think it was over 2% last week, I decided to sell and just stay with PVCMX and FSRRX which at least have positive YTD total returns. I am not too concerned about picking exactly the right time to re-enter the market. At my age, capital preservation is more important. Good luck, Fred
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Post by Fearchar on Apr 13, 2022 0:22:03 GMT
mozart522, just wondering about the consumer debt comment. Where did that observation come from? Here's FRED graph for consumer debt service payments as percent of disposable income: fred.stlouisfed.org/series/CDSPnothing remarkable.
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