Appropriate % cash in portfolio

Audaxer

NedS said:

Bobziz said:

Agreed, and I'm not objecting, although it does seem reasonable that any cash should be sat outside the ISA unless it will be used to buy in the dips.

And what exactly would the IFA buy during the dips? He can't buy more equities as that would move the portfolio outside the risk tolerances set out by your mother, so he's limited to more defensive assets such as bonds/gilts and maybe gold, all of which already look overpriced. Hence why there is a 30% cash holding in the first place.

With the market falls a few months ago, I would assume the percentage of cash within the S&S ISA increased. If the strategy was to keep the cash at 30%, would that not have been a time for the IFA to consider buying some more equities to rebalance the portfolio back to 30% cash?