Optimal Cash Allocation

coachman12

Thrugelmir said:

Time horizon means I'll never return to pre Covid times. Reached a level where I'm happy with my lot. The current uncertainty is going to take some time to unwind. 

Over the years have never stopped learning. As a result apply some basic rules whenever the economic climate changes. List your holdings and justify to yourself why they deserve inclusion in your portfolio. Do they have ESG/Green credentials, financially robust,if a dividend stock is the dividend adequately covered, sustainability in the downturn etc etc. Be emotionally detached. Everyone makes a bad call.  There's good and bad companies in every index. Don't feel constrained. Investing internationally has never been cheaper nor easier. Multitude of IT's that can provide exposure to less accessible markets and those where local knowledge is important. ETF's if a more focussed approach is required.  Despite investing for many years still come across companies who receive no media coverage yet consistantly churn out a decent return with upside of takeover. 
To return to the original point. If there's nothing worth buying I sit on my hands. If a share price has moved rapidly I top slice. If a share is performing badly I sell. Cash balance is whatever it is. Though I tend not to trade in small sums these days on an individual basis. 

I have learned over the months to value your opinions and I am grateful for your thoughts. I understand and have already adopted your views about a) never stopped learning b) justify portfolio from time to time, especially during an economic change  c) investing internationally has never been cheaper and easier (which is why Latin American companies have been added to my portfolio in recent times)  d) if there's nothing worth buying I sit on my hands   e) I tend not to trade in small sums these days on an individual basis.  So I seem to be doing quite a few things  in line with you, which encourages me.
Based on your concepts, I am falling down on a) I'm not emotionally detached unless pressure is too great to ignore  b) if a share is performing badly, I do not tend to automatically think of selling 
c) I do not tend to top slice .
Until you used the phrase "reached a level where I am happy with my lot" , it had not occurred to me, but as I read your words I am thinking "yes, I feel like that too". 
It is a fascinating subject and I once again thank you for your thoughts which I really appreciate----
it is surprisingly difficult, I find, to get trusted opinion from peer investors  [removed by Forum Team] . Thx.