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% cash to hold?
King Lodos
Posted: 16 March 2018 12:35:44(UTC)
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Mr Helpful;58827 wrote:
Under construction, KL was fitted with a brain "the size of a planet"; but unfortunately the designers may have forgotten to include empathy?


I think if grown men need to be treated with kid gloves – especially when, if you read their replies, they're very combative (before they've even said 'hello') – they shouldn't be making active investment decisions.

The market is by far the most uncaring thing we deal with on a daily basis, and it's the inner-infant (greed, fear, ego and tantrums) that defines 'dumb money' in the market, and leads to these appalling investor returns
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Jim S
Posted: 16 March 2018 12:46:10(UTC)
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One of my kids can be rather tactless, another can be rather over-sensitive. Both great kids, but its a recipe for frequent storms in teacups.
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King Lodos on 16/03/2018(UTC), Guest on 16/03/2018(UTC)
King Lodos
Posted: 16 March 2018 12:56:20(UTC)
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And there'll always be a dominance hierarchy .. Some of the behaviour here reminds me a lot of lobsters, vying for the best territory and the amplified serotonin only those comfortably at the top get to experience
dyfed
Posted: 16 March 2018 13:13:40(UTC)
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King Lodos;58833 wrote:
And there'll always be a dominance hierarchy .. Some of the behaviour here reminds me a lot of lobsters, vying for the best territory and the amplified serotonin only those comfortably at the top get to experience


Hail, top lobster!
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King Lodos on 16/03/2018(UTC), Jim S on 16/03/2018(UTC)
dyfed
Posted: 16 March 2018 14:02:01(UTC)
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P.S. I believe that the correct way to deal with a lobster is to fasten it's claws together to stop it biting, then slowly poach it to death before it realises what's happening......
.....it can then be eaten by a higher life form with a sauce of choice
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Tony Peterson on 16/03/2018(UTC), Jim S on 16/03/2018(UTC), Keith Hilton on 16/03/2018(UTC), Tim D on 21/03/2018(UTC)
Fell Walker
Posted: 16 March 2018 14:24:52(UTC)
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dyfed;58834 wrote:
Hail, top lobster!


LOL :-)
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dyfed on 16/03/2018(UTC), Jim S on 16/03/2018(UTC)
King Lodos
Posted: 16 March 2018 15:13:36(UTC)
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dyfed;58837 wrote:
P.S. I believe that the correct way to deal with a lobster is to fasten it's claws together to stop it biting, then slowly poach it to death before it realises what's happening......
.....it can then be eaten by a higher life form with a sauce of choice


Much the tack I've been using.

*wipes butter from chin*
Mr Helpful
Posted: 04 April 2018 15:04:56(UTC)
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PabloMartini;58643 wrote:
Currently my cash position is 25%. What % should I be looking at?
My investment timeline is 20 - 25 years, I plan to add monthly and I have an emergency cash pot elsewhere.

Any changes in Cash levels to report?
How generous have markets seemed since the first post?
In which direction are thoughts moving?
All Best
Alan Selwood
Posted: 04 April 2018 16:05:57(UTC)
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I wonder what "% cash to hold" has to do with lobsters, pecking order, etc?

(Shades of 'Just a Minute' !!)
paul armstrong
Posted: 04 April 2018 17:44:25(UTC)
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I have about 25% in cash and don't much like it. However that isn't a strategic asset allocation, just temporary uncertainty. If you are young and your portfolio is for growth, 10% would be high if sustained. If you are looking to buy a house in 3 years 100% would be appropriate. You may be building cash thinking you can time the market and buy on a slump. Perhaps so, but you will still have a desired asset allocation in mind.
King Lodos
Posted: 04 April 2018 18:33:39(UTC)
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My fun portfolio, started sometime around the start of the year: (didn't mean to make it so big – Retina screen, I forget to downsize)

https://i.imgur.com/MtEf699.jpg

Some dip buying, 8 stocks, and one of them Facebook .. and pretty flat, with a few dividends (not counted) .. UN and DEO are about 1/3rd of the portfolio; the rest fairly equal weight, with a little more in INTU.

Ironically I'd said I'd sooner short Facebook a week earlier, and buy Adidas .. If that turns out to be the right call, I'll trust my instincts more .. as it is, I think Facebook's still got a great business model, in which case this negative sentiment is a gift.


I'm over 40% cash .. That's from almost completely from selling out of credit .. And my dilemma now is how to deploy cash without greatly increasing market exposure just as risk picks up and liquidity unwinds.

Of course the problem with cash is being sidelined if markets decide to start rallying again (which I think is quite likely too, as I don't buy this trade war talk) .. So it'll probably be dip-buying select Consumer Staples and Tech stocks for the time being
1 user thanked King Lodos for this post.
John Miskelly on 04/04/2018(UTC)
Tony Peterson
Posted: 04 April 2018 19:47:10(UTC)
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So, KL, you are sacrificing an income from dividends almost double what you already receive, for what I see as no good reason at all?

King Lodos
Posted: 04 April 2018 20:23:56(UTC)
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There's an old phrase: picking up pennies in front of a steamroller ..

With the US 10yr yield around 2.6%, I'd be cautious of any stock yielding much more than that
Tony Peterson
Posted: 04 April 2018 20:35:18(UTC)
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KL

You don't really strike me as one who would be intimidated by a mantra, nor of extinct beasts like steamrollers or pennies.

Neither of us know the future. But uninvested money (like gold) butters no parsnips.
King Lodos
Posted: 04 April 2018 21:04:41(UTC)
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Buffett and Munger are advocates of sitting patiently with cash, waiting for opportunities .. My biggest concern is that we don't get any.

A lot of institutional money is buying treasuries at 2.8% when they become available, because there are times when it's most important to play a good defence.

I envy the outlook of income investors .. But I can't say it's the best way to make money
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