Investing

What is your portfolio % in equities now?

  • Last Updated:
  • Aug 19th, 2019 7:59 pm

Poll: What is your portfolio % in equities now?

  • Total votes: 97. You have voted on this poll.
75% - 100%
 
60
62%
50% - 74%
 
19
20%
25% - 49%
 
8
8%
0% - 24%
 
10
10%
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes

What is your portfolio % in equities now?

There are uncertainties in the stock market these days: inverted yield curve, trade wars, etc. So, are you a bull or bear?

This equity % is to compare with your % in cash, income funds or bonds.
31 replies
Deal Fanatic
User avatar
Dec 14, 2010
6428 posts
7795 upvotes
200% in equities, 0% in bonds, 0% in cash.

I am not bullish or bearish, I don't know where the market will go in the short term, but I know where it will go in the long term. Hence I continue to buy quality companies at a sound valuation anytime I have cash available.


Rod
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Deal Addict
Jun 14, 2018
1028 posts
1162 upvotes
Currently 75% equities, but will go up to 90% by the end of year. Similar sentiments with rodbarc. I have a long-term investment horizon and I know where the market is gonna go long-term, so I'm not afraid what might happen in the short-term. I only just started investing last month and I've already lost 1.5%. I haven't been fazed by it at all.

I keep a little bit in bonds just to help keep my emotions in check when there is a downturn. Good to see at least one investment in an upswing when all your other ones are getting slaughtered. Smiling Face With Open Mouth And Smiling Eyes
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes
rodbarc wrote: 200% in equities, 0% in bonds, 0% in cash.

I am not bullish or bearish, I don't know where the market will go in the short term, but I know where it will go in the long term. Hence I continue to buy quality companies at a sound valuation anytime I have cash available.


Rod
Rod, I congratulate you on your bravery and commitment.

Highly leveraged equity investing (200% in your case) is good in a rising market, or to a person who knows what he is doing. It seems that you are in that "knowing" category. But, for the inexperienced, highly leveraged investing may mean financial ruins if the stock markets go south.

On the other hand, I think it my be OK for some people holding 0-24% in cash or near cash, if that is their risk tolerance level (sleep better at night), if they need the funds to buy a house soon, or if they need the money for their retirement soon or now.
Deal Fanatic
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Dec 14, 2010
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fkungery wrote: Rod, I congratulate you on your bravery and commitment.

Highly leveraged equity investing (200% in your case) is good in a rising market, or to a person who knows what he is doing. It seems that you are in that "knowing" category. But, for the inexperienced, highly leveraged investing may mean financial ruins if the stock markets go south.

On the other hand, I think it my be OK for some people holding 0-24% in cash or near cash, if that is their risk tolerance level (sleep better at night), if they need the funds to buy a house soon, or if they need the money for their retirement soon or now.
Absolutely. There's no right and wrong answer for this question, one should be allocated according to their goals and risk tolerance. Nothing wrong being 100% in cash if there's a rational decision behind it.

Leveraging just amplifies results, good or bad. One should be comfortable with investing first, and understand what borrowing to invest entails (which means, not losing sleep if you borrow $200k, your portfolio drops to $100k and you still own the bank $200k + interest). Focusing on the business behind the stock really helps with this process.


Rod
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Deal Addict
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May 11, 2014
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Iqaluit, NU
I can't give an exact percentage, but I am approx 150% equity. While leverage is riskier than no leverage, I like to go back to the fact that many people are easily 500-600% real estate based om their mortgage alone.

I treat my stocks similarly. Borrow to buy, pay it down. Although I could work on trade timing, the strategy of leveraging and paying it down overtime as worked well for me.
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Newbie
Jan 21, 2017
55 posts
31 upvotes
So Rod, 200%, are running a 100% LOC from your Broker and if so how is that working with them, thx John 100% Equities.
Sr. Member
Feb 13, 2008
585 posts
260 upvotes
Edmonton, AB
110% Equities. Last year I was about 170% Equities. I am thinking going forward 60% Equities/ 40% TLT in my RRSP.
Sr. Member
Dec 25, 2015
530 posts
327 upvotes
Canada
200% leverage only? Damn brah I would go 2000%

"I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."
- Warren Buffet (the G.O.A.T)
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes
wolfs004 wrote: 200% leverage only? Damn brah I would go 2000%

"I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."
- Warren Buffet (the G.O.A.T)
Yes, a "smart" person can make a lot of money without borrowing, but s/he makes MORE with borrowing thru leverage. Leverage amplifies gains (and losses). I bet that Warren Buffet has borrowed before in his many past dealings.
Deal Addict
Jun 8, 2007
1001 posts
295 upvotes
Mississauga
80/20 split weighted towards equities. Just scaled back from 85/15 after a significant influx of cash bumped up my retirement timeline by five years :)
Deal Fanatic
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Dec 14, 2010
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wolfs004 wrote: 200% leverage only? Damn brah I would go 2000%

"I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."
- Warren Buffet (the G.O.A.T)
There's a difference between what Buffett says and what he does. Buffett uses leveraging with his insurance float. But he advocates to the average investor to not borrow to invest (while he does) and to buy low cost index (while he doesn't). Same goes for derivatives, which he famously described as weapons of financial mass destruction while at the same time owning them.

2000% is beyond my comfort level. 200% is fine with my comfort level.


Rod
Last edited by rodbarc on Aug 17th, 2019 11:24 pm, edited 1 time in total.
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

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Dec 14, 2010
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CheeseForum wrote: So Rod, 200%, are running a 100% LOC from your Broker and if so how is that working with them, thx John 100% Equities.
Mix of HELOC + margin from my brokerage (Interactive Brokers).


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Sr. Member
Jun 28, 2018
942 posts
673 upvotes
Toronto
rodbarc wrote: Mix of HELOC + margin from my brokerage (Interactive Brokers).


Rod
All hail interactive brokers. If only Canadian brokerages gave the same interest rates.

Quick snapshot at my old brokerage to ib. Used a little less commission so far, but paid way more in interest. Though that could be due to varying factors spurred by low commissions.
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes
Wow, with the stock market uncertainties (trade wars, inverted yield curve, donald trump twitter feeds, etc) , still more than half, at 58%, are allocating 75%-100% of their investment portfolio in stocks. To be honest, I was expecting less in stock equities, and more investors might have moved to more defensive investments (e.g., money market funds or bonds) from reading of the some posts in a few threads in this investing forum.

Personally, I am 82% in stocks, from 100% about a month ago.
Sr. Member
Apr 5, 2008
691 posts
97 upvotes
Vancouver
fkungery wrote: Wow, with the stock market uncertainties (trade wars, inverted yield curve, donald trump twitter feeds, etc) , still more than half, at 58%, are allocating 75%-100% of their investment portfolio in stocks. To be honest, I was expecting less in stock equities, and more investors might have moved to more defensive investments (e.g., money market funds or bonds) from reading of the some posts in a few threads in this investing forum.

Personally, I am 82% in stocks, from 100% about a month ago.
Alot of the "time in the market > timing the market" advice that keeps getting spewed is a result of this decade long bull market where people have largely forgotten what it would feel like trying to hold through a potential decade long bear/sideways market. Everyone is an investing expert and can religiously spew the same rhetoric in a bull market. The longer it takes for the next correction to come, the bigger the drop. We just don't know when it'll come, but when it does it will be a nice cleanser to get rid of some of the delusion that's happening with the markets. The sooner we can have this recession, the sooner we can move forward with the next bull run.

Personally I'm still equities heavy in my registered accounts because those are long term, but I'm also hoarding cash in the form of paying down the mortgage aggressively. It goes toward this "cash account" feature of which I can pull out anytime if I needed to. If I miss out on the continuing bull market then oh well I make 3%. When the recession eventually comes, I'll look towards pulling this all out to re-invest back into the markets and probably leverage a bit by employing the Smith Manoeuver on the mortgage.
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes
nobb wrote: Alot of the "time in the market > timing the market" advice that keeps getting spewed is a result of this decade long bull market where people have largely forgotten what it would feel like trying to hold through
It has been a long bull run since 2009. To some young investors, it has been a good time, at euphoria stage, that the party will never end. My YTD portfolio return is about 27%, near all time high. But then again, believing the time in the market strategy, I was also a victim in the 2000 and 2009 crashes, that took about 6 or 7 years to climb back to the previous peak.
Deal Addict
Oct 21, 2014
1578 posts
2019 upvotes
Burlington, ON
I am 100% invested in equities for my cashflow producing investable assets. I have other assets such as a family home and cash which will not be invested but spent on consumer goods in the short term, and an emergency fund. Would like to correct a couple of misconceptions though; we had a short lived bear market in December 2018, and our current bull market has only started in 2019, not that the age of a bull market should matter. Also, we are not in recession as stock market volatility is not a recession.
[OP]
Member
Mar 26, 2012
412 posts
267 upvotes
Gungnir wrote: our current bull market has only started in 2019,...
Hope you are right that the bull market has just started....BUY BUY BUY
Deal Addict
Oct 21, 2014
1578 posts
2019 upvotes
Burlington, ON
fkungery wrote: Hope you are right that the bull market has just started....BUY BUY BUY
Hehe, well bull markets don't have an expiry date and just because a bull market ended and restarted has no implications for the underlying securities. What I'm conveying here is that in the media I keep seeing references to "10 year bull market has to end soon", which is both using incorrect data as the bull market ended and a bad premise as the length of a bull market does not predict how much longer it will continue.

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