Quote:
Originally Posted by Unregistered
As for cash, I keep about $1m around. Keeping 20% would be nuts. The rest is invested. I don't see any need to keep that much cash when the banks will lend me large amounts should I ever need it.
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This is for sharing only, no other agenda. Like I mentioned earlier, I have sold off some properties and am now sitting on a very high proportion of cash vs the value of my total investment portfolio, something like 45%.
I need to redeploy and lower my cash component but am facing a dilemma. Shall I time the market? Wait for asset prices to correct or redeploy now?
For every dollar I redeploy into the equity or bond market, I think I can get at least 6% yield, with some leveraging of between 30% - 50%.
Hmm, maybe I should get the bankers to do some work. Have them run various yield simulations for equity and bond portfolios with different levels of leverage and margin call scenarios whilst I figure out what to do.
If you have some spare cash lying around that you don't need to fund your lifestyle, what would you plan to do with it? Will you invest it immediately? If so, on what asset class?