12-05-2014, 11:34 AM
I am almost fully invested. With just 1% of my portfolio in cash, I find myself caught with missed opportunities.
I know that most of my money is working to its full potential by staying invested in companies but at the same time, I find that quick overreactions in the market (such as today's 2% drop in BNS) means that I am left on the sidelines. As we go into a new year, I am hoping to have a bit more room to move in on new opportunities when they present themselves.
While missing a 2% drop in stock price is a missed opportunity nonetheless, I would regret if there was a 10% drop in the market and I couldnt take advantage. I feel a cash position of 5-10% of my portfolio will provide me with that ability. Out of curiosity, do you have a target to maintain a cash position in your portfolio?
I know that most of my money is working to its full potential by staying invested in companies but at the same time, I find that quick overreactions in the market (such as today's 2% drop in BNS) means that I am left on the sidelines. As we go into a new year, I am hoping to have a bit more room to move in on new opportunities when they present themselves.
While missing a 2% drop in stock price is a missed opportunity nonetheless, I would regret if there was a 10% drop in the market and I couldnt take advantage. I feel a cash position of 5-10% of my portfolio will provide me with that ability. Out of curiosity, do you have a target to maintain a cash position in your portfolio?