Yes, I’m back to 33% cash of current portfolio value, although I may be spending some substantial dollar amounts later if my limit orders execute.
It is a big question and I’m still processing. I still have some hedge work to do on inherited stocks but I am freer now than I have been for nearly 2 years. I have been distributing some of my , errrr, lets call it my wider portfolio, outside stocks and shares, most specifically into my medal collection which has risen substantially in value since I started to build it in 2000 (perhaps 100%-200%). I have added some high quality items via online purchases recently.
I think, globally, we will see the markets continue to hit highs for the first quarter or two in 2020 but I’m still convinced there will be a correction of between 20%-40% , probably when we least expect it. Why? Because there always is. Although … with Q.E. and low interest rates just possibly we are in some kind of new era, or at least length of cycle.
Did I ever mention i sold out of my S&P 500 tracker for huge profits after it hit multiple all time highs once too often to my mind. That was about 2014/15 I think. Maybe even earlier. I bought after the ‘great recession’ carnage and was amazed how quickly it surged back. Definitely a plan for part of my cash pile should similar events happen.
Although my cash pile remains high, I am in and out of short term trades on large and small cap companies pretty much constantly, and that has been going reasonably well.
I hold PRS REIT (family housing build to rent) and intend to hold for the long term (10 years?). I bought too high initially when over the IPO price of @100p but have added since it languished recently and my average is around @91p. Slightly underwater, but it has started to make a come back now and I’m hoping it continues (obviously) and at some point picks up capital growth from its assets also.
US purchases, if they happen, are made in USD (although I considered converting some GBP when it strengthened today a little) and are in NetApp Inc, a cloud play that looks set up to have a good run in 2020, so much so its management are boasting that ‘the macro is irrelevant to our growth’. I thought I’d put some cash behind such hubris if I can get $62.50 per share. Quite happy to sell that at a 10% profit and add to the USD holding in my SIPP.
A couple of other tiny companies that are such wild plays I’m not going to mention them here in case someone decides to take a punt. Nothing but plays on the next quarter results and guidance which should see large lifts in the price of both at which point I will sell. I’m hoping for something more like 30%+ in those. Minimum. Again, they are very much tech based and 5G spending recipients (or should be) which I think will drive tech in 2020 now I’m hearing from ex-colleagues in places like San Francisco who are seriously considering journeys only to destinations where 5G is available once they get there.
I haven’t set orders for these yet, haven’t quite had time to research properly, but I feel the money will be going on come what may. These are all companies I have come across while watching my UK-based (head-quartered) semi-conductor company, IQE, go nowhere and I remain deeply underwater with. If they can’t come back from 5G involvement with some of their products after Q1 (seasonal slow time) they probably never will.
Other than that, still got a lot of work to do strategy-wise. Most of the above (except PRS) is all tactical or even operational level activity. Have been tied up far more than I expected over the Xmas period.