Cash as Asset Allocation ?

[WolfT]

I am always abt 25-30% cash. I also have another cash account waiting to buy a hse.
They are all in FD account.

[nsengkia]

I try to make myself lean against the wind by holding a percentage of cash in my portfolio that is inversely related to the P/E of my overall stock portfolio i.e. 0% if my overall stock portfolio P/E is below 5 and 20% cash if my overall stock portfolio P/E is above 8 and some fraction in between. Currently this works out to be 10% cash.

P.S.: Still fine tuning the P/E trigger points and percentages though so it is a work in progress that I hope will gradually improve over market cycles.

Just curious? Why your portfolio and why PE? Why not PE of broader market?

P/E because it is one of my major screening parameters.

While P/E of ST Index is readily available but the ST Index is not a good proxy of my portfolio (our returns deviate quite substantially).

I also tracked my portfolio P/E in the past and the last cycle peaked and troughed when my portfolio P/E was around 8 and 5 respectively. I was heavily exposed at the peak and used all my bullets up too quickly before the trough. Hence my keeping to this rule of thumb to "time the market" better this time round. To reiterate, it is still a work in progress

[kichialo]

I am always abt 25-30% cash. I also have another cash account waiting to buy a hse.
They are all in FD account.

Same, around 25-30% cash.

Is the hse purchase for self stay? How long have you been waiting? I always felt for self stay should not wait or time the market.

[pianist]

I am always abt 25-30% cash. I also have another cash account waiting to buy a hse.
They are all in FD account.

Same, around 25-30% cash.
Is the hse purchase for self stay? How long have you been waiting? I always felt for self stay should not wait or time the market.

I kinda agree...but just curious the cash account waiting for hse, must be quite a big sum as ltv max is 80%?

[WolfT]

So paisey to say that i waited for a property crash since 2009...nope the hse is not for self stay so i can wait.
In 2012 i bought a retail outlet so now the cash for housing not a lot less than 150k

[cif5000]

No cash except for what's in the wallet. Wife has all the cash. But I have 3 credit cards and some minimum daily balances for the bank accounts.

[em2nre5u]

>60% in cash...

[tikam buddy]

>60% in stocks...

[Greenrookie]

hmm....

100% invested...

Think I am the only one...

[safetyfirst]

me close to 90% invested... the idea of waiting for a big drop in the market doesnt appeal to me... if it really happens i can always invest more with my incoming salary