CASH (CASH)

(A Top Pick June 12/17.) Always holds cash in the summer. He is spending a big chunk of his cash right now, but a bit at a time. He worries about the lack of volatility in this market, it is not healthy. Expects to be holding 15%-20% in cash a few weeks from now.

He holds it for seasonal reasons. Sell in May and go away did not work this year. The other reason he holds cash is if he sees a break in the trend of S&P. He goes 15% to 50% into cash, depending on what he sees.

(A Top Pick Aug 4/17) You want to hold it until two weeks from now when the markets in general start to move higher.

(A Top Pick Aug 25/17.)

Holding cash until the middle of October makes sense, because that is when all the economically sensitive sectors turn positive. Wait until that time before using your cash.

(Top Pick Sep 6/16) If oil slides this year, buy the high beta oil stocks.

You need some buying power for later in the year. There will be a lot of buying opportunities.

(A Top Pick June 2/17.)

We are just entering into the period of seasonal weakness in the Canadian market. The TSE Composite drops about 2.5% in the month of September. Usually it bottoms around the middle of October and then goes higher. Now is the time to have a nice cash position, and wait for opportunities as they start rising around the middle of October.

(A Top Pick Sept 7/16.) This hasn’t been the best call. He is defensive by nature and his 1^st and foremost goal over the long-term is to protect capital.

(A Top Pick July 20/17.) He always holds cash every summer for seasonal reasons, but is a little bit heavier this year. He’ll release the cash by buying good stocks by November, but is hoping for some sort of a correction so that he can buy before.

What is wrong with cash when the risk may be is a little bit higher than normal?

You don’t want to buy TSX stocks at this time of year, as September until the middle of October is the most grizzly time of year. It looks like the Canadian dollar may go higher yet.

(Top Pick June 2/17)

He has some of his clients’ money in high interest savings accounts. It is an important investment asset. If you are fully invested all the time and an opportunity comes along you have to sell something. Your sell decision should be independent. The longer you are in a market cycle, then the more likely you are to have a market correction. He is 10-15% cash for his clients.