Home Forums Members Forum How much of portfolio should be reserved as cash? Reply To: How much of portfolio should be reserved as cash?

AvatarScott Pearcy
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That decision is totally up to you, however Sean suggests that you keep a significant amount of cash in reserve (30%-50%) right now because the market is grossly overvalued and is like to go through a fairly significant correction in the near future (25%-40% drop). If you are fully invested in stocks, your stocks will likely suffer this correction as well. If you have a significant cash reserve, the impact on your portfolio will be greatly reduced and you will have cash available to buy when the market has bottomed (or close to it).