Cash to Half

As of yesterday, cash is up to around 50% of the entire portfolio.

I know I mentioned on Monday that it was at around 30%. I’ve been eyeballing how strong the bounce from the bottom of the recent correction has been. I guess I’m not feeling as great about any sort of continued melt up. Upon reflection, I think I’ve been trading in and out for a little while because I don’t believe deep down the narrative that everything is rosy and the market will continue to march higher and higher.┬áSo I’ll sit in cash, earning about 0.9% interest and wait.

Stocks are expensive relative to history. The 10 year US Treasury continues to go up. I will be cautious. If I’m completely wrong, as I said 3 years ago, I will just index everything to the total stock market and forget about playing fund manager.

Only advice I have is to do as I say (index, DRIP, and forget) and not as I do (what I’ve just written about).

Enjoying the Present with Added Risk

I really like beer. Like, I really like beer. From light, crisp pilsners to dark, heavy stouts, I love the symphony of flavours, smells, and sensations. The problem is… it contains alcohol. Alcohol isn’t the greatest thing for your body above certain dosages. From everything I’ve read on the current knowledge of safe drinking levels, it seems like under 2 cans of beer per day is what is considered safe for the average person, but who knows. On most days, I indulge in a can of beer or two. Is this safe? I’m not sure. And thus the dilemma: do I abstain completely, knowing that abstinence will cause no risk from alcohol, but perhaps decrease enjoyment in life, or do drink my beer or two a day, enjoying myself with the added risk of potential health issues arising way down the line? Do I value enjoyment in the present with added risk or do I decrease enjoyment but take on no risk? My feelings have sided with the former, but I’m always chewing it over.

Infograph from Adioma.

Market Correction February 2018

So I wrote this super long, rambling post exceeding 1000 words, listing all sorts of various trades and fairly esoteric math that only I would probably understand about opportunity cost gains and losses in the portfolio. I realized at the end of it, I didn’t really want to hit that publish button. So I think the compromise is to keep this as simple as possible.

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