Locator: 51196INVESTING.
Is it time to pivot to ETFs only?
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This is not an investment site. This is not for general readership; this is for me, and for my extended family members to know how I'm thinking.
From the article:
While this is the portfolio that should perform the best over time, Evensky, who made his reputation by understanding investor psychology, thinks most investors would sleep easier if they kept 10% in cash. They also could use that cash to buy stocks during market downturns.
I've never understood the recommendation that you keep 10% of your portfolio in cash as "dry powder." First of all 10% doesn't move the needle psychologically for me.
Second, "percentages" in this case don't make sense. My multi-millionaire who lives next to me and thinks he's a middle class American and lives on $100,000 / year would have $1 million in cash in his portfolio.
My answer to that (keeping 10% of one's portfolio in cash as "dry powder." Park cash into the most defensive ETFs possible and use new cash and/or cash parked in these ETFs to literally buy stocks every day. I concentrate on very good companies trading in the red when the overall market is up.
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Disclaimer
Briefly:
I am inappropriately exuberant about the Bakken and I am often well out front of my headlights. I am often appropriately accused of hyperbole when it comes to the Bakken. I am inappropriately exuberant about the US economy and the US market. I am also inappropriately exuberant about all things Apple. See disclaimer. This is not an investment site. Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If something appears wrong, it probably is. Feel free to fact check everything. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them. Reminder: I am inappropriately exuberant about the Bakken, US economy, and the US market. I am also inappropriately exuberant about all things Apple. And now, Nvidia, also. I am also inappropriately exuberant about all things Nvidia. Nvidia is a metonym for AI and/or the sixth industrial revolution. I've now added Broadcom to the disclaimer. I am also inappropriately exuberant about all things Broadcom. Now, I've added Amazon. And QCOM. Longer version here.
