Investing

Holding cash?

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Newbie
Aug 28, 2012
39 posts
17 upvotes

Holding cash?

This market is crazy!! I am curious to hear what percentage of your portfolio is in cash, waiting for good buying opportunities. I don't hold any fixed income. Almost all in equities with a few ETFs.

25% of my portfolio is in cash (sitting in EQB100, HOM100, NBC101)....waiting to be deployed.
18 replies
Deal Addict
Mar 28, 2007
3210 posts
807 upvotes
mrmuggs wrote: This market is crazy!! I am curious to hear what percentage of your portfolio is in cash, waiting for good buying opportunities. I don't hold any fixed income. Almost all in equities with a few ETFs.

25% of my portfolio is in cash (sitting in EQB100, HOM100, NBC101)....waiting to be deployed.

I have about 30% in cash (contributed to my RRSP this week and maxed my TFSA, so got some more cash sitting in there). Looking to invest that by the end of this week and be down to either 0-5% in cash, no more!
Deal Addict
Apr 21, 2014
2321 posts
1106 upvotes
Alberta
Don't usually hold any cash and just deploy it as soon as I have it. However I just made a 10k rrsp contribution to a spousal rrsp that I haven't deployed yet.
Deal Addict
User avatar
Jul 20, 2003
1181 posts
247 upvotes
abc123yyz wrote: Don't usually hold any cash and just deploy it as soon as I have it. However I just made a 10k rrsp contribution to a spousal rrsp that I haven't deployed yet.
Same here. Will buy stock as soon as i have the funds. I have little cash. All in equities and index funds.
Deal Addict
User avatar
Aug 4, 2014
3963 posts
4723 upvotes
Toronto, ON
About 15% (all in USD, in two RRSP accounts, husband's and mine) Was regretting not deploying it earlier (and selling some stocks before they ran higher), but oh well - not having much FI, so cash provides a healthy cushion. Actually considering buying US bonds ETF with it - if the Feds rise the rates in March and/or the equities keep marching.
Newbie
Aug 28, 2012
39 posts
17 upvotes
It's hard to find value in this market and I feel like everything is overpriced.....leading to "analysis paralysis" (quoting another poster). If you are fully invested, where does one find cash to take advantage of market corrections?
Deal Guru
Feb 9, 2009
12381 posts
11307 upvotes
Looks like the Feds are going to increase rates at least twice, if not 3 times this year -- Trump's plan is definitely inflationary in the Fed's minds and unemployment is under 5% -- I sense a sell off in the market as the fed continues to raise rates...

Im holding 25% in cash... at the very least need to see some kind of correction which will probably happen sometime this year.
Jr. Member
Jan 13, 2008
110 posts
57 upvotes
I am about 1% cash after end of 2016 rebalancing and 2017 TFSA contribution. I usually rebalance again and do RRSP mid year.

Last July I considered skipping the mid year re-investing until after the US election because I had a hunch Trump would win and that was supposedly going to crash the markets. Thankfully I stuck with the plan and just put all my cash to work because the markets have gone crazy for Trump!!!
Deal Fanatic
Oct 1, 2004
6651 posts
995 upvotes
GTA
Matrix_dot_ca wrote: Same here. Will buy stock as soon as i have the funds. I have little cash. All in equities and index funds.
same, seems like everyone been saying there is no value anymore since two years ago... and we are still hitting record highs. Almost like the folks who stayed away from home ownership hoping for a RE bubble...
Sr. Member
Apr 9, 2012
583 posts
169 upvotes
Markham
greg123 wrote: same, seems like everyone been saying there is no value anymore since two years ago... and we are still hitting record highs. Almost like the folks who stayed away from home ownership hoping for a RE bubble...
I stayed way more cash than i shouldve. I did buy a house 3 years ago so that evened out.

I would say similar holding cash and holding out to buy a house have the same psych. Once you decided to hold out, it's very very hard to jump in after cause the fear that it will go down the moment you go in is a double whammy and becomes much worst.

You held out and lost the opportunity cost already and are even more scared of losing. Many people are like that sitting on the sidelines for buying a house too.
Deal Fanatic
Jan 21, 2014
8517 posts
6260 upvotes
I only have 70% of my cash in the investment accounts and out of those, only 40% in equities (60% are in money market or fixed income/bond). Am I the most conservative on this board?
Deal Addict
User avatar
Jun 15, 2005
2098 posts
1968 upvotes
mkl38s wrote: I only have 70% of my cash in the investment accounts and out of those, only 40% in equities (60% are in money market or fixed income/bond). Am I the most conservative on this board?
Excluding those about to retire, I'd assume you are one of the most conservative on this board.
I find myself fairly conservative at 65/30/5 for equities/bonds/cash.

With that said, that's for my own personal self directed accounts. My pension is super aggressive since I'm fairy young still.
Deal Addict
Nov 28, 2010
1374 posts
345 upvotes
Brampton
That majority of cash have is sitting in my chequing account. Frustrated that every time I buy an individual stock it seems to go down (amd, enb) while my mutual funds, index funds and index etfs are always beating my hand picked stocks badly. Overall I have around 10% of my total assets in cash and for the most part saving cash and adding small weekly contributions to my td eseries funds and employee share ownership plan.
Deal Addict
User avatar
Jan 20, 2009
1862 posts
277 upvotes
Toronto
50% in cash. liquidated half my NREG before the year ended. took some gains...missed a few% for early redemption lol
Member
Jun 28, 2016
284 posts
151 upvotes
mkl38s wrote: I only have 70% of my cash in the investment accounts and out of those, only 40% in equities (60% are in money market or fixed income/bond). Am I the most conservative on this board?
My TFSA and RRSP are fully invested in a mix of index and mutual funds (they are always fully invested) but my non-registered account (where I trade individual stocks and have a little less than half of my money) is more conservative than you at the moment. It's about 70% in cash, as I have been slowly taking profits through the Trump rally. Even most of the things I bought in January and December then proceeded to shoot up so much that I was uncomfortable holding them any longer. I have seen some individual stocks which interested me (and I purchased or considered purchasing) but, for the most part, I am staying on the sidelines.
Deal Fanatic
Apr 11, 2012
5865 posts
3138 upvotes
Winnipeg
50% cash since US election
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Newbie
Oct 31, 2012
89 posts
18 upvotes
WATERLOO
I'm 90% equity 8% fixed income and 2% cash.
I always invest as soon as I get any cash. I don't plan to sell my existing holdings regardless of what the market does.
However I am thinking I should buy more fixed income with future cash inflow.
Sr. Member
Aug 7, 2014
563 posts
243 upvotes
It seems that each person has his/her risk tolerance, and therefore the % cash holding varies. There is no one right answer for all.

One might need more cash because capital preservation may be his or her short term important goal (e.g., retirement soon & needs the money, funds to have a house deposit, or for a child university education or for a wedding, etc).

And, others might hold more cash before of economic and political uncertainties in the US under president trump. After all, the stock mkt has had a good run since 2009.

I have 2% cash and 98% equities. Then again, I also consider my gold plated pension income as additional cash, and my mortgage free house as a secured investment.

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