CASH (CASH)

He is opportunistic. Cash dampens the downside and provides opportunity. He holds about 20% cash. Believes there is a greater than normal possibility that market will pull back. Cash will provide capital to purchase cheap stocks.

Normal target of 0-10% cash in portfolio. He is running around 5-7% cash position in their portfolio. He thinks they could be holding 20% cash by March 2019 because of the risk of a market pull back. Always want some cash in portfolio for tactical ability.

He was talking defensively then. A lot of stocks have not done well and many gassy stocks have been pummelled.

People should do their homework and find the companies they like.

It's a defensive play. You need cash available to make a move on the market. Typically, starting now, we see a pullback, so that's a buying opportunity. The market doesn't have huge runs from May to October with limited return. The other six months, you earn higher returns, ones above 10%. Now is a time to be defensive.

He is defensive and holding about $20%. Keep it in case the market falls.

(A Top Pick Sep 18/17, Flat) He thinks there is a 20% downside in oil stocks. Worldwide inventories will be rising between now and the end of the year.

He is holding about 23% right now. The current ranking of the market it signalling him to hold a higher than normal level.

It is about interest rates. Until cash yields complete with dividend yields then you should be in the market. There may be some weakness over the summer if we get interest rate noise so it would not be bad to be sitting on some cash.

How much cash are you holding in your portfolio? Coming into the year he was holding 20-30% cash, now he holds 11-20% depending on the fund.

Where to Park. There is a ‘fear-of-missing-out’ trade. Canada is not the place to put your money at this point. Options might be one way to put your money to work. You can write a put on the S&P out 1 year to buy it 10% lower. You could take in a 2.5% yield while you wait. Or you could be patient and wait for opportunities to present themselves. ZWU-T which he talked about on the same show is another option for a third of your cash.

(A Top Pick Aug 25/17.)

(A Top Pick Aug 4/17.) Although you don’t want to put new money into the market right now, there is an opportunity in a couple of weeks, where sectors have sold off because of tax loss selling. There will be opportunities to buy.

Be very careful in the next couple of weeks. There’s a lot of tax loss selling pressures happening right now. This will provide the buying opportunity in sectors that have been overly depressed, things like oil services, energy, precious metals.

(A Top Pick Nov 2/16.)