Hello Fellow Community
I usually am a silent reader but I was wondering if any of you face the same problem as me?
Im currently holding onto about $85k deployable cash but invest $1.2k/month in a roboadvisor for the past 2 years and also hold about $30k in REITs, Banks and Telcos for dividend income.
I feel like I am holding onto too much cash at the moment & couldn’t buy quickly enough during a small correction in May but from what I’ve calculated, almost all the REITs are overvalued but I can’t help but wonder “high can still go higher” and maybe punished for sitting out from the market.
Should I continue waiting until a more favourable time presents itself for those REITs and build my war chest more aggressively until then??
thanks a lot! (:
For me, what I do is I expand my watchlist ^^”
I personally try to keep my cash position 30% and below unless I am facing crazy valuations.
I always try to add whenever I see valuations are attractive.
As my cash position shouldn’t swell so huge, as well as not a care for short term performance, I am doing overall okay I guess (still much more to improve though).
That being said a bull can go rather long and I won’t really know the top, so I don’t feel comfortable jumping in and trying to get out before the market falls.
you are in a very favourable situation as most people used up their cash when the market crash. Don;t be too eager to deploy your cash but rather focus on finding the good companies. Only when opportunity arises then deploy it.
Wow! That’s a really enviable position to be in. I would echo the comments above. If you think valuations are too high,I would urge you to use the time to prepare. I tell myself the same thing, just wish I had the cash level you do to take advantage :)
Alternatively, depending on the robo-advisor you use, you could set a low-risk portfolio and park some of the cash there to earn some low yield while you wait. Since it takes a few days to withdraw, you could keep a portion there and try to move it when you feel ready
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