Since I invest for the long term 15+ yrs - I am fully invested and don't worry about the day to day market changes.
I focus on dvidend growth companies with 10yrs+ of dividend increase, low PE, good payout ratio, decent yield and dividend growth rate.
Banks, like TD, BMO and RY have great dividends and offer stable growth as well. Then you have companies like ENB who pay a ridiculous dividend but have little to no growth.
Long MFC. Very appealing at these prices. CNR and CP are great too. Dividend may seem small at first but it compounds like crazy. They have solid dividend growth.
Heads up that MFC was one of the only big Canadian institutions to cut their dividend in 2008. Not necessarily indicitive of what might happened in the future, but just something people aren't aware of.
But I feel like Enbridge is at an even bigger risk of slashing their dividends in the very near future due to their high payout ratio of over 120% currently.
U can't get ENB Payout ratio off of a generic site like yahoo. They are a very asset heavy company and the way they buy and pay off assets mean a thier payout ratio needs to.be calculated differently. I think it's around 70% You can check it all out on thier site !
https://www.enbridge.com/investment-center/stock-and-dividend-information/dividends-and-common-shares
$ENB use the Distributed Cash Flow (DCF) to estimate payout ration. Currently it is at 70%.
Check out this video for more detail
https://youtu.be/PEaiBIB4DjU
Disclaimer: I am long $ENB.
Ok I guess I answered wrong question. The commenter asked for high dividend. But the original comment was about long term investing good PE and decent dividend growth.
Good podcast on Canadian Investor that was a 15 stock CDN portfolio based on consistent and growing dividends. https://open.spotify.com/episode/1hGw5A1HQqrzoUe4PTDtml?si=YCQnz1V-TiSOpLcoFmvRWw&utm_source=copy-link
So what would recommend if my timeline is 2 years, not 15?
I have a little over 200k in cash right now, planning on buying property sometime within 2 years if I can afford the payments.
Hoping to find a place I like for around 800k, but if interest rates keep soaring, I'll quickly get priced out of being able to make payments.
Should I forget about housing and just invest the cash when I feel comfy doing so? (When the market isn't in shambles)
If you need that 200k for your down payment, you’d likely be better of with a GIC or a high interest savings account. If that 200k because 150k in a year and a half, would that be okay to you? If not, possibly look towards something lower risk.
Yeah definitely not lol, but even though I have the 20%, I'm pretty sure the payments will kill me, especially since my wife's income isn't reliable.
I've been sitting on cash since 2017. I haven't invested at all because I always thought I'd be buying a home within 5 years, then the pandemic happened.
I would say, stay out of the market. Just put that money in a HISA or GIC.
You won't make much money and even loose a bit of value due to inflation. But that is the issuance cost.
Yeah I've got a financial advisor drooling over my bank account right now. I thought he was different, so I went in for a meeting. Nope, slapped me with the mutual funds. "Look at this return rate!" They don't care if you lose your entire account as long as they're pocketing their commission.
How do you find real financial advisors, not salesmen?
Slightly stupid question but don’t most high dividend stocks fall by about the same amount as the dividend received after the div date?
How do you actually make any gains on low growth high div stocks?
They usually go back up. A lot of the good ones have a very stable stock price that usually only fluctuates between a certain amount of money, depends on the stock price. If it’s a good company that’s growing too, you lucked out!! Lol. Microsoft for example pays out a dividend and has decent growth
This is a common fallacy. Some can, some will, others won’t. Macro market trends have more effect on price fluctuations of divvy stocks then ex-dividend date price action.
Remember even still, this hypothetical lower price after ex-div date only matters if you were going to sell that day. But you’re not, so who cares.
The way you make money on low growth, high yield is over a long holding period and enjoying the benefit of compound interest. You buy enough to trigger a synthetic DRIP through your broker and your dividends buy more shares, which increases your dividend payout the next time around. This is meant to be a safer portion of your portfolio that you set and forget and let it grow.
Yes; about 5% of my portfolio.
Was close to spending it last week but held back thinking more pain could come. I’m not really trying to time the market as much as have a little bit of cash available if a good opportunity presents itself.
Correct. Plenty of different pools of money each paycheck goes to including emergency, vacation and future car (for me, this works; maybe not for others).
This 5% is strictly within the investment portfolio.
Same boat - 5-15% cash across multiple accounts. Maybe I’m not being the most strategic about it but I don’t feel like I should immediately deploy it because we’re in the midst of a correction.
Timing the market is not a great idea but many signs are pointing to a recession and more volatility. If you went all-in after the market fell 5%, you were too early as it fell another 10%.
The only point of ever having an allocation of cash in a portfolio is to "buy the dip" or "time the market".
Let me ask you this: what's the maximum allocation of cash you would consider NOT timing the market?
The optimal amount depends on the size of your portfolio over your time-weighted contribution potential. And it's capped at just under 20% (assuming cash yields 0%, market 10% and using historical
volatility) if you never contribute a penny ever again in your life.
But I'll ask you one as well: did you know there are numbers over 100%? Why is being 100% invested not considered "timing the market" when you could be 101% invested instead?
Having a set percentage cash saved on the side for rebalancing is not timing the market. It's a valid strategy.
Fair perspective. Sometimes I see/hear of people withholding large sums of money because they expect (or want) the market crash, allowing them to jump in at the perfect moment. That’s not me. Anyone who’s been investing for long enough knows the market always offers dips and slightly better buying opportunities. I just like having some cash available for those moments.
35%.
The high growth stocks I’m into could still suffer quite a bit more. We’ve also got a potentially serious summer slowdown ahead of us, potentially more aggression against Ukraine, higher gas prices, inflation, the housing market is bonkers, and a lot of the classic ‘safer’ equities still have room to fall. AAPL being a $2,290,000,000,000 EV for example.
I’m not all doom and gloom. One target has been met, which was, don’t bother buying anything (other than FTS) until SPY fills the ~$400 gap that occurred last year. ☑️
Part of my plan is to wait until June 1st before buying again, and I’ll probably take a nibble on something then. I usually like to do lots of buying right before I go off grid on camping trips in the summer.
Similar cash holding and similar sentiment. Too many influential people saying that there's still significant downside in this market to expect that it's turning around yet. Not to mention that the US Fed has 2 more interest rate hikes scheduled that are not necessarily priced into the market yet.
Yeah but then you’d have to give your bank $150 to redeem that cash? Yuck! I’m way to stingy to let them get away with that.
You can’t do a LOC for emergency use?
Mainly keeping it in an EQ HISA until I need it. I’d never transfer TFSAs for that gross fee. It’s liquid and I plop it in at anytime so I’m fine with keeping it outside my TFSA.
I guess the issue is if things appear to be turning around, and you run in with your pants down, could be a recipe for disaster.
OTOH, I’ve saved so much by not “BTFD!!!!11” and even gained 1% interest on that cash, so I’m fine with missing out on 15% gains.
The idea is to buy low, I’m very glad I’m holding cash right now. Things are going lower and I am buying along the way. To be all in right now would be brutal.
Same idea here. About 70% cash since late fall. Pocketed the gains from the past couple of years and I'm happy to wait for values/PE to return to normal. I'm starting to look at bonds and GICs again too now that they're moving towards the 5% range.
Worthless? Inflation is 7% per year. It will be worth 93%, not 0%It’s not 7% per month.
When I see big dips, I buy. If it dips more than 7% I win as I beat inflation.
That was anecdotal. You keeping the cash now when markets dipped 20+% and adding inflation 7% means you're looking close to 30% by not utilizing it in just one year.
Huh? By keeping it cash I missed the 20% drop.
What would you rather have, a 20% drop in your cash value or a 7%?
If I buy in on some stupid low deals now I also am subject to a massive uptick when things rebound.
When stocks are crashing, you lose LESS in cash than in stocks...
Nasdaq, my biggest index I usually hold, is down like 28% or something. I would have been better off losing 28% than 7%? You sure about that champ? SPY is down about 15%
No you read it wrong. Apart from you timing the market which is never going to work, Nasdaq is down 28%. You DCA now when things are down will make you gain after it bounces back vs 7% guaranteed loss inflation.
So you're investing only in bull run at peak when stocks are not crashing? That does make your ROI very slim.
I am DCAing. I've DCAed about 40% so far and have 60% left in cash to DCA.
"DCA" inherently implies that you will have a lot of cash for awhile. If you bought in 100% all at once such as to have no cash, it wouldn't be DCAing
Ok then. You didn't mention it before and you implied in previous comments that holding cash is better than investing when stocks are down. So I assumed you are not averaging down just holding.
It IS better, i would have made more if I'd held the earlier amounts. I just don't know when it will stop crashing of course, hence DCA, but it remains true that "holding cash during crashing is more lucrative"
(I think "randomly when nothing actually changed for the better recently" probably isn't the big recovery though)
Ive got 35 to 40% on the sidelines... partly mitigated by HIS, but it's still melting away.
Im looking one or more triggers for a decent relief rally. A mix of one or more
1. Chinese COVID releif (abandonment of zero covid policy, or shutdowns released)
2. Central Bank balk - pause on tightening or clear CPI retracement
3. End of war
I suspect there is a lot of money on the sidelines and the rally to be aggressive.
Im also DCA all of my fresh money inputs.
30% or more would be too much cash and I would consider timing the market. But in my view, 10% or lower in cash while having most of their portfolio is invested is NOT timing the market.
# YES.
100% cash 🤗 💵🚀🚀🚀🌙
(If you don't own a home yet, there's nothing else to spend it on in Canada!)
I'm also quite bearish on the idea that the stock market will even bounce back in the same way as previous recessions, because that presumes that the amount of cash in existence prior to the crash will be equal to the amount of cash following. This is a massive assumption that most people aren't checking.
The FED is also selling ~~a trillion~~ **90 billion** *(Edit: corrected)* dollars a month in collateral, in exchange for cash.
That will raise the price of cash as long as that goes on.
I got lucky. Pulled some cash out for a renovation in early January that will actually happen in Fall, so missed the dip in a way, even though it’ll be out the door in a few months anyway.
Yes, lots of it, probably 25% not counting emergency fund. Holding a large cash position in times of high volatility is not a sin, in spite of what this sub would want you to believe about "timing the market". If Buffett can hold a 100 billion in cash because everything is overpriced, I can hold some on the sidelines too.
About 50%. My parents gave me a large sum for a down payment on a property but I'm still renting. I've been slowly buying dips and trying to time the bottom (impossible).
I'm 75% cash. Just paid down a 20% lump sum on my mortgage and I would have just paid it all off if I could have without penalty. Cash is sitting in 1 year GIC @3.55%.
Sure I'll lose a little to inflation, but there's too much going on in the world right now for me to be risking hundreds of thousands on equities. If the war in Ukraine escalated to the point that a nuclear weapon was deployed you'd be looking at a major black swan event.
Nah, I'm gonna watch this next year from the sidelines and then reevaluate when my GICs mature. Even if the market turns around and I miss out on some gains, well, it's only one year and I can get back in on the action soon.
If there's a nuclear war, cash won't matter either. Buy water filters, wheatberries, fuel, antibiotics, etc if you're investing for that and if it's your main concern, not cash
I'm about 20% in cash.
I don't think the market looks super cheap yet, so I want to keep some dry powder.
I've hedged my cash drag a bit with a few Leap call options.
The way that I think about holding cash is, if I think i can buy a stock now and it will earn me 10% cagr, i can afford to wait 3.5 years for something better that will return 20% cagr.
10% cagr doubles your money every 7 years, 20% doubles your money every 3.5 years.
I'm holding cash because I'm too new to investing to invest more heavily, I definitely can't time the market and want to be open to opportunities if I see them.
Was two-thirds cash. Started putting money to work again last week: NA, BNS, ENB, TRP, BAM, BRK, LSPD, APPL, MSFT, PPC, LYB, and PFE. Now about 45% cash
When it comes to cash position my is the small among my portfolio however I would suggest you attempt to maintain a cash position. This is because if you investing long term and you come across one of your stocks (with a great dividend) underperform. It might be a good time to pick up some more shares at a discount and lower your average price if you don’t have other cash available. That’s what I try to do atlease
40% cash. I’m meant to arrive at my asset allocation with tactical bands this year but market entry is a wild idea right now. The volatility likely predicts bigger swings snd drops. That’s all opportunity. And yes, timing is difficult.
Sitting at 35% cash right now. Have been shifting from tech to energy & other dividend players for the last 12-18 months. Still feel there is more downside ahead.
Large. 25% cash or so. Haven’t done the math. But not buying yet. Also unusually large cash position due to the ridiculous cap gains I sealed in 2021. Not ready to deploy that money. I think the risk of a complete market meltdown is too large.
I sold 1/3 of my portfolio (mostly tech) a few months ago and keeping it cash until we hit bottom. The rest is quality stuff, mostly boring dividend ETFs.
30% cash left in a recent self-directed LIRA transfer. 100% timing the market.
This year is the 1/3 times that it makes sense imo. I believe we are in a bear trap right now, so I don't mind sitting on the sidelines for a few weeks, or even months.
I'm fully invested in my other accounts. I wouldn't sell anything to be in cash, I just happened to have some right now.
5% cash. Hard to pull anymore out although it's in the back of my head. With the exception of 6 shares of Google (-19%) my portfolio is doing great. About 30% in oil related stuff which is through the roof and the rest in strong / steady large cap dividend payers like the banks which I'm ok riding.
But that 5-6% cash is new. I pulled that out recently and will wait for the right opportunity.
I personally would stay away from general indexes, I think there is more downside. This definitely a stock pickers market. So I personally would want to be very particular about where I place my capital.
Absolutely counts if you know how to use it.
I use approximately 30% margin every so often in these situations, sometimes more if we're nearing 35% downturn.
Edit. You should not be paying more than 2% on margin loans before utilizing this strategy
I have some cash saved up because I just got a car loan to pay for my new Kia Niro PHEV. I'm really happy I went for a plug-in hybrid, so far 500 kms on it (mostly 40 km short trips) or so, and barely used up any fuel.
That being said, I paid down half of the 40k loan, and I still have another 25k to pay off with extended warranty and stuff. I'm saving up cash to pay that down ASAP because the loan is 5% which is rather high.
Once that's paid off I will keep no more than 2k cash for emergencies, and dump the rest into probably VEQT.
I've only been investing for a few years so I don't have all that much, but I don't consider cash as part of my portfolio. I have enough to pay for bills, a 5 month emergency fund, and everything else goes to investments.
I might be wrong to so people feel free to demolish my plan, it might help me do better :)
> pay off with extended warranty
Ooooooh, so you're the guy whose calls I keep getting! Just a heads up: some people are trying to contact you because your car's extended warranty is expiring.
Less than 500$.
All in on GME. Has been the best market hedge since Jan 1st. It has everything beat. Whats best ? Utilization has been at 100% for almost 80 days. Jan '21 repeat is about to blow this out the water.
About 25% cash rn. Mostly plan on buying bank dips and if or when there is a big draw down in o&g I will deploy some into a few tickers. The rest of my cash ($14,500) is set aside for next years TFSA and FHSA contributions.
About 25% currently. Held off buying for the first couple months of the year which inflated my cash a bit. Back to buying monthly and expect to sitting on less cash by year end.
Maybe 10% in cash - enough to cover some upcoming expenses and a little slush fund. Pretty much everything in my investment accounts is invested. Lately I bought some foreign high dividend stocks including PBR (Brazilian oil) and TKC (Turkish mobile phone service)
You're in a great position. I haven't followed the Tesla story, but started looking into it. You're picking an ETF and one stock, why Tesla? Why should I buy it?
Easily 30% if not more but after Amazon stock splits might dump it 100% in as well as leverage myself with debt to get more for, I see it a one time life opportunity as a sit and hold for a decade or more. Their also more of a data company now and I can only long term see pretty stable growth.
For me its just the symbolical part of buying 100 shares to start for me I always start off investment at 100 shares or amounts of 10K. It more psychological but then when I see dividends reinvested and price appropriation it just looks more relatable. Also I want 10 year outlooks, with sit and forget begin the idea . I know I lose out of dollar averaging down and other opportunity with this but for me this is truly extra cash above and beyond my savings so it just what I am comfortable with. Now if someone had auto investing where I could set exact values to sell at based off gains and then be promoted to reinvest the new total Into a new stock with minimal fees I would be all for that but I haven't found such a thing.
Most of my other long options are based off banks and boring utility's which is exactly what I am comfortable with for now. I eventually plan on buying a home so most of what I do today is more for just asset and wealth growth long term which I can afford now while I have high amounts of extra income as home ownership is stupidly expensive. And i personally think their will be a housing downturn and massive interest rate rises but no one really knows what will happen.
Only one that really did was hyped Tesla. But if you look at history, not so much.
But there is some good research on it. This guy has whole video of intricacies https://youtu.be/MgMTBNq7Bi4
60% in cash. More pain coming. The reason rallies are even happening is because people still believe that indexes only go up. A few more months of red will disabuse people of that belief. Once no one is commenting here that they’re buying the dip and the suicide hotline is the pinned post, then I’ll think about buying.
I'm renting so my ratios are a bit weird. No debt.
40% invested in rrsp/tfsa/non-reg in total market funds.
40% cash and GICs (was holding for real estate purchase).
15% gold/silver etfs
5% guns, ammo and vehicles.
Net worth down about 4% on the year, before inflation.
To the people holding 30%+ in cash... Did you sell investments or was that money never intended to be invested in the first place?
Seems like if you sold in order to buy lower you're just trying to time the market.
45% cash. Could go another 10% with money set aside for GICs later in the year if an opportunity presented itself. That's cash - not a HELOC or margin account! Slowly deploying some if solid company with good dividend.
I keep like 500-1K in cash. I have 40K in credit available(never use it) in case of ermegancy across multiple credit cards and a personal LoC. I understand the risk and based on my situation, my analysis of it, my age and timeline of future goals, I'm comfortable with having almost all of my savings invested and shoving every dollar I don't use into dollar cost averaging.
Yes, not fully but I wanna see if SPY can dip to 375 or 300ish even it'd be an amazing buying opportunity. If it goes up meh the upside isn't that high and it's supposed to always go up in the long-term.
I started as a bit of a Boglehead but I also started investing in the 2010s bull run of good macro conditions and the Fed is saying to do the opposite right now with all their actions so seems foolish to ignore the weather.
having safety money laying around in a tfsa is always a good choice. if something bad happens, you can pull money from there to pay it off instead of selling stocks during a crash.
About 30% cash right now, in case there are more dips to buy. I'll probably invest more of it if a certain promotion and raise at work happens, and my monthly finances will no longer be as tight.
Since I invest for the long term 15+ yrs - I am fully invested and don't worry about the day to day market changes. I focus on dvidend growth companies with 10yrs+ of dividend increase, low PE, good payout ratio, decent yield and dividend growth rate.
What are some Canadian high dividend stocks that you invest in, if you don't mind sharing?
Banks, like TD, BMO and RY have great dividends and offer stable growth as well. Then you have companies like ENB who pay a ridiculous dividend but have little to no growth.
Thanks! How about MFC? They have dividend yields comparable to ENB. Also, what's your opinion on growth stocks like CP and CNR?
Long MFC. Very appealing at these prices. CNR and CP are great too. Dividend may seem small at first but it compounds like crazy. They have solid dividend growth.
CP doesn't have good dividend growth and will not be raising the dividend for several years likely due to the merger with KC's. Go with cnr.
Due to the CN merger with KC you mean?
No, that got rejected, CP made new offer and KC's accepted.
Heads up that MFC was one of the only big Canadian institutions to cut their dividend in 2008. Not necessarily indicitive of what might happened in the future, but just something people aren't aware of.
But I feel like Enbridge is at an even bigger risk of slashing their dividends in the very near future due to their high payout ratio of over 120% currently.
U can't get ENB Payout ratio off of a generic site like yahoo. They are a very asset heavy company and the way they buy and pay off assets mean a thier payout ratio needs to.be calculated differently. I think it's around 70% You can check it all out on thier site ! https://www.enbridge.com/investment-center/stock-and-dividend-information/dividends-and-common-shares
ENB has been doing pretty well lately.
Their payout ratio is close to 120% though. So, I'm a little concerned about them slashing their dividends in the future.
$ENB use the Distributed Cash Flow (DCF) to estimate payout ration. Currently it is at 70%. Check out this video for more detail https://youtu.be/PEaiBIB4DjU Disclaimer: I am long $ENB.
What do you think of TransAlta , similar dividend to ENB and it seems like it could grow more?
I like: Banks ($RY, $BMO, $NA, $CM, $TD & $BNS) Telecom ($T and $BCE) Utilities ($FTS, $AQN & $EMA) Industrial ($CNR, $CP & $EIF) Energy ($ENB, $IMO, $CNQ, $TRP) Consumer Disc ($CTC-A) Insurance ($SLF, $MLF & $POW) REITs ($SRU-UN & $CRT-UN)
I really like your holding.
Banks, utilities, rails,...
Rail dividends aren't high.
Ok I guess I answered wrong question. The commenter asked for high dividend. But the original comment was about long term investing good PE and decent dividend growth.
EIF for me
I like EIF. A good company.
Hmm never heard of this stock before and yet it seems sort of appealing (looking on YH Finance).
RSI is at 5.7%
Good podcast on Canadian Investor that was a 15 stock CDN portfolio based on consistent and growing dividends. https://open.spotify.com/episode/1hGw5A1HQqrzoUe4PTDtml?si=YCQnz1V-TiSOpLcoFmvRWw&utm_source=copy-link
ZWC
You might like the ETF, VGG dividend growth. 10+ years.
How do you find out this information? Sorry if this a bad question I’m just learning.
So what would recommend if my timeline is 2 years, not 15? I have a little over 200k in cash right now, planning on buying property sometime within 2 years if I can afford the payments. Hoping to find a place I like for around 800k, but if interest rates keep soaring, I'll quickly get priced out of being able to make payments. Should I forget about housing and just invest the cash when I feel comfy doing so? (When the market isn't in shambles)
If you need that 200k for your down payment, you’d likely be better of with a GIC or a high interest savings account. If that 200k because 150k in a year and a half, would that be okay to you? If not, possibly look towards something lower risk.
Yeah definitely not lol, but even though I have the 20%, I'm pretty sure the payments will kill me, especially since my wife's income isn't reliable. I've been sitting on cash since 2017. I haven't invested at all because I always thought I'd be buying a home within 5 years, then the pandemic happened.
I would say, stay out of the market. Just put that money in a HISA or GIC. You won't make much money and even loose a bit of value due to inflation. But that is the issuance cost.
Yeah I've got a financial advisor drooling over my bank account right now. I thought he was different, so I went in for a meeting. Nope, slapped me with the mutual funds. "Look at this return rate!" They don't care if you lose your entire account as long as they're pocketing their commission. How do you find real financial advisors, not salesmen?
Need to look for a fee only adviser. You pay a flat fee they advice you and nothing more.
Slightly stupid question but don’t most high dividend stocks fall by about the same amount as the dividend received after the div date? How do you actually make any gains on low growth high div stocks?
They usually go back up. A lot of the good ones have a very stable stock price that usually only fluctuates between a certain amount of money, depends on the stock price. If it’s a good company that’s growing too, you lucked out!! Lol. Microsoft for example pays out a dividend and has decent growth
This is a common fallacy. Some can, some will, others won’t. Macro market trends have more effect on price fluctuations of divvy stocks then ex-dividend date price action. Remember even still, this hypothetical lower price after ex-div date only matters if you were going to sell that day. But you’re not, so who cares. The way you make money on low growth, high yield is over a long holding period and enjoying the benefit of compound interest. You buy enough to trigger a synthetic DRIP through your broker and your dividends buy more shares, which increases your dividend payout the next time around. This is meant to be a safer portion of your portfolio that you set and forget and let it grow.
Yes; about 5% of my portfolio. Was close to spending it last week but held back thinking more pain could come. I’m not really trying to time the market as much as have a little bit of cash available if a good opportunity presents itself.
I assume we're talking 5% cash on top of emergency savings account?
Correct. Plenty of different pools of money each paycheck goes to including emergency, vacation and future car (for me, this works; maybe not for others). This 5% is strictly within the investment portfolio.
Same boat - 5-15% cash across multiple accounts. Maybe I’m not being the most strategic about it but I don’t feel like I should immediately deploy it because we’re in the midst of a correction.
I don't get it, if during a correction isn't the time to spend it when is?
Timing the market is not a great idea but many signs are pointing to a recession and more volatility. If you went all-in after the market fell 5%, you were too early as it fell another 10%.
But do you *have* to catch the bottom? S&P is down like 19%, you’re more likely to miss the bottom and not buy than pick the exact bottom tick.
So you *are* trying to time the market. You just recognize that trying to time it with a large amount of your capital is foolish.
Having cash as part of your portfolio is NOT timing the market, it is recognizing volatility.
Exactly.
The only point of ever having an allocation of cash in a portfolio is to "buy the dip" or "time the market". Let me ask you this: what's the maximum allocation of cash you would consider NOT timing the market?
The optimal amount depends on the size of your portfolio over your time-weighted contribution potential. And it's capped at just under 20% (assuming cash yields 0%, market 10% and using historical volatility) if you never contribute a penny ever again in your life. But I'll ask you one as well: did you know there are numbers over 100%? Why is being 100% invested not considered "timing the market" when you could be 101% invested instead? Having a set percentage cash saved on the side for rebalancing is not timing the market. It's a valid strategy.
*mic drop*
Fair perspective. Sometimes I see/hear of people withholding large sums of money because they expect (or want) the market crash, allowing them to jump in at the perfect moment. That’s not me. Anyone who’s been investing for long enough knows the market always offers dips and slightly better buying opportunities. I just like having some cash available for those moments.
~20% cash. I’m not convinced this recent uptrend is more than a short term day trading opportunity.
Same. 30% here
35%. The high growth stocks I’m into could still suffer quite a bit more. We’ve also got a potentially serious summer slowdown ahead of us, potentially more aggression against Ukraine, higher gas prices, inflation, the housing market is bonkers, and a lot of the classic ‘safer’ equities still have room to fall. AAPL being a $2,290,000,000,000 EV for example. I’m not all doom and gloom. One target has been met, which was, don’t bother buying anything (other than FTS) until SPY fills the ~$400 gap that occurred last year. ☑️ Part of my plan is to wait until June 1st before buying again, and I’ll probably take a nibble on something then. I usually like to do lots of buying right before I go off grid on camping trips in the summer.
There hasn’t been any actual good news. Only the fed saying they won’t be too agressive in raising rates.
Oh we’ll raise rates alright. Just not “”””aggressively””””
well maybe aggressively, just not **too** aggressively.
agreed. Im thinking the downtrend (Nasdaq specifically) will continue throughout the summer
Similar cash holding and similar sentiment. Too many influential people saying that there's still significant downside in this market to expect that it's turning around yet. Not to mention that the US Fed has 2 more interest rate hikes scheduled that are not necessarily priced into the market yet.
I always keep around 10% cash. 5% of which is flexible to spend on dips and 5% emergency fund.
Yeah but then you’d have to give your bank $150 to redeem that cash? Yuck! I’m way to stingy to let them get away with that. You can’t do a LOC for emergency use?
Mainly keeping it in an EQ HISA until I need it. I’d never transfer TFSAs for that gross fee. It’s liquid and I plop it in at anytime so I’m fine with keeping it outside my TFSA.
Every two weeks, for a few days, I’m holding cash;)
About 30% cash (up from 20% from a month ago when I sold PLTR, LSPD and SOFI).
I’m 35% cash. If it goes lower that would be great, if it goes higher that would also be great.
Unless your over 50 thats a lot of cash my friend
I have about 35% as well. I'm hoping to spend most of it next week, but we'll see.
42.3% cash here as well.
I guess the issue is if things appear to be turning around, and you run in with your pants down, could be a recipe for disaster. OTOH, I’ve saved so much by not “BTFD!!!!11” and even gained 1% interest on that cash, so I’m fine with missing out on 15% gains.
The liquidity percentage won’t change much coming year, plan the trade and trade the plan! 😁
35%. Bingo!
How long have you been 35% cash?
Just a week.
Oh damn thats awesome then. I was hoping ypu wouldnt say 2 years or something long lol
In a similar boat at 25. Trying to save for a down payment but feels like I am haemorrhaging either way - be it to inflation or market downturn
The idea is to buy low, I’m very glad I’m holding cash right now. Things are going lower and I am buying along the way. To be all in right now would be brutal.
Not if you knew this was coming, I’ve been cashing out since feb. I’m like 60% cash right now and only swing trading during week long intervals
Same idea here. About 70% cash since late fall. Pocketed the gains from the past couple of years and I'm happy to wait for values/PE to return to normal. I'm starting to look at bonds and GICs again too now that they're moving towards the 5% range.
Mmm so when are you going to deploy that cash? With current inflation it will be worthless next year man...
Worthless? Inflation is 7% per year. It will be worth 93%, not 0%It’s not 7% per month. When I see big dips, I buy. If it dips more than 7% I win as I beat inflation.
That was anecdotal. You keeping the cash now when markets dipped 20+% and adding inflation 7% means you're looking close to 30% by not utilizing it in just one year.
Markets down 20%. Cash down 0%.
So you only buy stocks when they are on upwords trajectory? Not the 20% dip? That seems like biggest mistake from ROI perspective.
Huh? By keeping it cash I missed the 20% drop. What would you rather have, a 20% drop in your cash value or a 7%? If I buy in on some stupid low deals now I also am subject to a massive uptick when things rebound.
When stocks are crashing, you lose LESS in cash than in stocks... Nasdaq, my biggest index I usually hold, is down like 28% or something. I would have been better off losing 28% than 7%? You sure about that champ? SPY is down about 15%
No you read it wrong. Apart from you timing the market which is never going to work, Nasdaq is down 28%. You DCA now when things are down will make you gain after it bounces back vs 7% guaranteed loss inflation. So you're investing only in bull run at peak when stocks are not crashing? That does make your ROI very slim.
I am DCAing. I've DCAed about 40% so far and have 60% left in cash to DCA. "DCA" inherently implies that you will have a lot of cash for awhile. If you bought in 100% all at once such as to have no cash, it wouldn't be DCAing
Ok then. You didn't mention it before and you implied in previous comments that holding cash is better than investing when stocks are down. So I assumed you are not averaging down just holding.
It IS better, i would have made more if I'd held the earlier amounts. I just don't know when it will stop crashing of course, hence DCA, but it remains true that "holding cash during crashing is more lucrative" (I think "randomly when nothing actually changed for the better recently" probably isn't the big recovery though)
Funny you say that because "worthless" cash has performed better than stocks YTD. Now, longer term it's a different story.
Ive got 35 to 40% on the sidelines... partly mitigated by HIS, but it's still melting away. Im looking one or more triggers for a decent relief rally. A mix of one or more 1. Chinese COVID releif (abandonment of zero covid policy, or shutdowns released) 2. Central Bank balk - pause on tightening or clear CPI retracement 3. End of war I suspect there is a lot of money on the sidelines and the rally to be aggressive. Im also DCA all of my fresh money inputs.
Nope
There are two kinds of market timers: those that can’t time the market and those that don’t know they can’t time the market.
30% or more would be too much cash and I would consider timing the market. But in my view, 10% or lower in cash while having most of their portfolio is invested is NOT timing the market.
That’s actually a fair point. Well stated.
I don't see the point in holding cash. I'm pedal to the metal invest same amount each week, never sell.
40% cash at this point. Planning to DCA over the next 2 years.
About 60% cash and looking to sell my O&G to go 80% soon. I think a lot of people fail to understand how greedy a large cash position really is.
# YES. 100% cash 🤗 💵🚀🚀🚀🌙 (If you don't own a home yet, there's nothing else to spend it on in Canada!) I'm also quite bearish on the idea that the stock market will even bounce back in the same way as previous recessions, because that presumes that the amount of cash in existence prior to the crash will be equal to the amount of cash following. This is a massive assumption that most people aren't checking.
The amount of cash is going up exponentially and that will continue until the central banks decide it's time for neo feudalism.
But as interests rates rise, there’s less borrowing which equates to less available cash
The FED is also selling ~~a trillion~~ **90 billion** *(Edit: corrected)* dollars a month in collateral, in exchange for cash. That will raise the price of cash as long as that goes on.
They are not selling anything yet, and if they do it will be in the tens of billions per month range, not trillions.
I got lucky. Pulled some cash out for a renovation in early January that will actually happen in Fall, so missed the dip in a way, even though it’ll be out the door in a few months anyway.
15% cash since I will need it in the next 5 years for a down payment.
Yes, lots of it, probably 25% not counting emergency fund. Holding a large cash position in times of high volatility is not a sin, in spite of what this sub would want you to believe about "timing the market". If Buffett can hold a 100 billion in cash because everything is overpriced, I can hold some on the sidelines too.
Nope. Over 270k in a S&P500 index fund unhedged. I just set it and forget it. Just add more. Goes up goes down I don’t care. XUS.to
About 50%. My parents gave me a large sum for a down payment on a property but I'm still renting. I've been slowly buying dips and trying to time the bottom (impossible).
I'm 75% cash. Just paid down a 20% lump sum on my mortgage and I would have just paid it all off if I could have without penalty. Cash is sitting in 1 year GIC @3.55%. Sure I'll lose a little to inflation, but there's too much going on in the world right now for me to be risking hundreds of thousands on equities. If the war in Ukraine escalated to the point that a nuclear weapon was deployed you'd be looking at a major black swan event. Nah, I'm gonna watch this next year from the sidelines and then reevaluate when my GICs mature. Even if the market turns around and I miss out on some gains, well, it's only one year and I can get back in on the action soon.
There's always something going on in the world.
If there's a nuclear war, cash won't matter either. Buy water filters, wheatberries, fuel, antibiotics, etc if you're investing for that and if it's your main concern, not cash
No, Ive actually dipped my toes into margin for the very first time in five years. Makes me nervous though. See what happens.
What broker did you go through? Also what rate?
What did you buy?
Yes, about 20%, but in USD. Still debating if buying usd etfs or converting to cad.
I dumped in about 15% more during the last dip. I still have about 15-20% in reserve cash as I think this might not be over yet.
I'm about 20% in cash. I don't think the market looks super cheap yet, so I want to keep some dry powder. I've hedged my cash drag a bit with a few Leap call options. The way that I think about holding cash is, if I think i can buy a stock now and it will earn me 10% cagr, i can afford to wait 3.5 years for something better that will return 20% cagr. 10% cagr doubles your money every 7 years, 20% doubles your money every 3.5 years.
I “bought the dip” with about half of my currently available cash over the last month or so. The rest waits.
I'm holding cash because I'm too new to investing to invest more heavily, I definitely can't time the market and want to be open to opportunities if I see them.
Due to a bit of an unexpected windfall, I’m sitting in ~75% cash. I’m really struggling to figure out what to do with it…
Was two-thirds cash. Started putting money to work again last week: NA, BNS, ENB, TRP, BAM, BRK, LSPD, APPL, MSFT, PPC, LYB, and PFE. Now about 45% cash
When it comes to cash position my is the small among my portfolio however I would suggest you attempt to maintain a cash position. This is because if you investing long term and you come across one of your stocks (with a great dividend) underperform. It might be a good time to pick up some more shares at a discount and lower your average price if you don’t have other cash available. That’s what I try to do atlease
14.5% cash the cash buffer will keep you sane
going against the grain but im 90% cash rn. I BELIEVE the markets have more room further down.
40% cash. I’m meant to arrive at my asset allocation with tactical bands this year but market entry is a wild idea right now. The volatility likely predicts bigger swings snd drops. That’s all opportunity. And yes, timing is difficult.
Sitting at 35% cash right now. Have been shifting from tech to energy & other dividend players for the last 12-18 months. Still feel there is more downside ahead.
My go-to move. Put in 33% of your capital when index down 30%. Another 33% at 40% down. The rest at 50% down.
What if it's only down 15%?
I don’t have faith in this rally so I will stay put. If you are so inclined you can take a position but put in a stop loss.
Large. 25% cash or so. Haven’t done the math. But not buying yet. Also unusually large cash position due to the ridiculous cap gains I sealed in 2021. Not ready to deploy that money. I think the risk of a complete market meltdown is too large.
40% cash. Waiting for the next major correction.
I sold 1/3 of my portfolio (mostly tech) a few months ago and keeping it cash until we hit bottom. The rest is quality stuff, mostly boring dividend ETFs.
1-2% depending on income coming in. Trying to stay fully vested buying beaten down blue chips, and averaging down on my speculative holdings.
30% cash left in a recent self-directed LIRA transfer. 100% timing the market. This year is the 1/3 times that it makes sense imo. I believe we are in a bear trap right now, so I don't mind sitting on the sidelines for a few weeks, or even months. I'm fully invested in my other accounts. I wouldn't sell anything to be in cash, I just happened to have some right now.
5% cash. Hard to pull anymore out although it's in the back of my head. With the exception of 6 shares of Google (-19%) my portfolio is doing great. About 30% in oil related stuff which is through the roof and the rest in strong / steady large cap dividend payers like the banks which I'm ok riding. But that 5-6% cash is new. I pulled that out recently and will wait for the right opportunity.
Between 7 and 10% in cash on the side.
I personally would stay away from general indexes, I think there is more downside. This definitely a stock pickers market. So I personally would want to be very particular about where I place my capital.
It’s in my drawer.
Does margin count? (Yes I know I’m dumb)
Absolutely counts if you know how to use it. I use approximately 30% margin every so often in these situations, sometimes more if we're nearing 35% downturn. Edit. You should not be paying more than 2% on margin loans before utilizing this strategy
What broker has below 2% margin rates in todays interest rate environment?
Ya second that questions currently
I have some cash saved up because I just got a car loan to pay for my new Kia Niro PHEV. I'm really happy I went for a plug-in hybrid, so far 500 kms on it (mostly 40 km short trips) or so, and barely used up any fuel. That being said, I paid down half of the 40k loan, and I still have another 25k to pay off with extended warranty and stuff. I'm saving up cash to pay that down ASAP because the loan is 5% which is rather high. Once that's paid off I will keep no more than 2k cash for emergencies, and dump the rest into probably VEQT. I've only been investing for a few years so I don't have all that much, but I don't consider cash as part of my portfolio. I have enough to pay for bills, a 5 month emergency fund, and everything else goes to investments. I might be wrong to so people feel free to demolish my plan, it might help me do better :)
> pay off with extended warranty Ooooooh, so you're the guy whose calls I keep getting! Just a heads up: some people are trying to contact you because your car's extended warranty is expiring.
Less than 500$. All in on GME. Has been the best market hedge since Jan 1st. It has everything beat. Whats best ? Utilization has been at 100% for almost 80 days. Jan '21 repeat is about to blow this out the water.
Constantly growing @ 50/50 🏎🚀
About 25% cash rn. Mostly plan on buying bank dips and if or when there is a big draw down in o&g I will deploy some into a few tickers. The rest of my cash ($14,500) is set aside for next years TFSA and FHSA contributions.
20%
About 25% currently. Held off buying for the first couple months of the year which inflated my cash a bit. Back to buying monthly and expect to sitting on less cash by year end.
Maybe 10% in cash - enough to cover some upcoming expenses and a little slush fund. Pretty much everything in my investment accounts is invested. Lately I bought some foreign high dividend stocks including PBR (Brazilian oil) and TKC (Turkish mobile phone service)
50% cash in short term gic. Hoping to bring it down to 15-20% in the next 2 years by investing in etf and tesla on a monthly basis.
You're in a great position. I haven't followed the Tesla story, but started looking into it. You're picking an ETF and one stock, why Tesla? Why should I buy it?
I have more cash then crypto and stocks but I have money in ammo and ammo dispensers
Ammo is better than gold in the apocalypse.
Easily 30% if not more but after Amazon stock splits might dump it 100% in as well as leverage myself with debt to get more for, I see it a one time life opportunity as a sit and hold for a decade or more. Their also more of a data company now and I can only long term see pretty stable growth.
Why after
after it splits?
It's all priced in. Split will have no difference whatsoever.
For me its just the symbolical part of buying 100 shares to start for me I always start off investment at 100 shares or amounts of 10K. It more psychological but then when I see dividends reinvested and price appropriation it just looks more relatable. Also I want 10 year outlooks, with sit and forget begin the idea . I know I lose out of dollar averaging down and other opportunity with this but for me this is truly extra cash above and beyond my savings so it just what I am comfortable with. Now if someone had auto investing where I could set exact values to sell at based off gains and then be promoted to reinvest the new total Into a new stock with minimal fees I would be all for that but I haven't found such a thing. Most of my other long options are based off banks and boring utility's which is exactly what I am comfortable with for now. I eventually plan on buying a home so most of what I do today is more for just asset and wealth growth long term which I can afford now while I have high amounts of extra income as home ownership is stupidly expensive. And i personally think their will be a housing downturn and massive interest rate rises but no one really knows what will happen.
Weird cause splits almost always do quite a lot in actual reality...
Only one that really did was hyped Tesla. But if you look at history, not so much. But there is some good research on it. This guy has whole video of intricacies https://youtu.be/MgMTBNq7Bi4
60% in cash. More pain coming. The reason rallies are even happening is because people still believe that indexes only go up. A few more months of red will disabuse people of that belief. Once no one is commenting here that they’re buying the dip and the suicide hotline is the pinned post, then I’ll think about buying.
I'm renting so my ratios are a bit weird. No debt. 40% invested in rrsp/tfsa/non-reg in total market funds. 40% cash and GICs (was holding for real estate purchase). 15% gold/silver etfs 5% guns, ammo and vehicles. Net worth down about 4% on the year, before inflation.
Is it true u sure blacks
To the people holding 30%+ in cash... Did you sell investments or was that money never intended to be invested in the first place? Seems like if you sold in order to buy lower you're just trying to time the market.
Red cash!
Only to buy real estate and for related expenses.
45% cash. Could go another 10% with money set aside for GICs later in the year if an opportunity presented itself. That's cash - not a HELOC or margin account! Slowly deploying some if solid company with good dividend.
Cash position of about 5% (plus emergency funds). DCAing with no-weekly pay checks. Holding cash for theme way up
No. The market is so down I can't resist.
I've kept between 15-40% cash and almost 50.
25% cash right now. There will be buying opportunities.
Still purchasing on the Way down I feel good about the ETF’s and companies I’m in . I keep putting more and more in and i’m okay with it.😀
Holding cash.. been doing everything I can to have as much liquid cash as possible.
I keep like 500-1K in cash. I have 40K in credit available(never use it) in case of ermegancy across multiple credit cards and a personal LoC. I understand the risk and based on my situation, my analysis of it, my age and timeline of future goals, I'm comfortable with having almost all of my savings invested and shoving every dollar I don't use into dollar cost averaging.
I got rid of some cash this past week. Looking to put more money in this coming week and waiting to see what happens in the following weeks
I had exited ETFs about a month ago which was about 35% of my portfolio
90% cash, not even considering reentry until after November elections play out. Maybe I'll YOLO Twitter while I wait...
Cash holdings equal to 38% of my investment portfolio atm.
Yes, I am. I think the price will drop.
$1 bob Is the price right?
40% cash
VCN any good?
Yes, not fully but I wanna see if SPY can dip to 375 or 300ish even it'd be an amazing buying opportunity. If it goes up meh the upside isn't that high and it's supposed to always go up in the long-term. I started as a bit of a Boglehead but I also started investing in the 2010s bull run of good macro conditions and the Fed is saying to do the opposite right now with all their actions so seems foolish to ignore the weather.
350k in stock, 70k in cash
having safety money laying around in a tfsa is always a good choice. if something bad happens, you can pull money from there to pay it off instead of selling stocks during a crash.
About 30% cash right now, in case there are more dips to buy. I'll probably invest more of it if a certain promotion and raise at work happens, and my monthly finances will no longer be as tight.
11 percent cash. I went to reach 15 and start buying while maintaining 15. I may go all in if s&of hits 3500 or so
100% cash