There are days when I feel that I didn’t really deliver as a blogger writing about investing. The time is probably now.
I could have written about the next best stock that perk up my interest and you should take note as well.
Sadly, due to studies and work, I cannot do that well recently.
It becomes an issue personally because new cash set aside for the portfolio cannot find a home.
Parking the cash
The thought of trying to find a place to park them, the feeling of missing out is hard to shake off. Investors find cash to be unattractive as it don’t earn anything now. But I do urge investors to rationalize.
If you have 30% cash, I think it is a good allocation to be in. Cash itself, is also an asset class.
Markets move in a cycle, and there will very much have a time when there is a 20-30% correction.
Look at your cash as an option that can purchase good stocks at cheap price. That’s how Warren Buffett rationalize cash. He is not afraid to hold it.
If the market hums along u still have 70% to take advantage of it.
What I did and aim to do
In my case it is 40% equities 60% cash. that’s probably too much and a sort of headache as I cannot find good areas to deploy to.
I recently deploy into Ascendas REIT, Frasers Centerpoint and Parkway Life REIT. These seem to be well managed REITs paying more than fixed deposits. Their price is relatively stable. I should have enough reaction time should shit hits the fan, to liquidate and scale down.
I also increase the stake in China Merchant Pacific which will go ex div on 19th Oct. I hope I am not buying into dividends.
The immediate allocation is more towards 30% cash, 30% low volatile assets yielding 3-6% and 40% equities.
Fight the urge to buy fair value assets with a view to hold them long.
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For my best articles on investing, growing money check out the resources section.
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