02-17-2015, 08:02 PM
(This post was last modified: 02-17-2015, 08:35 PM by hendi_alex.)
I'm currently at 20% cash and if all of my 'in the money' short calls get exercised between now June, another 25% could hit the pot. Not much chance of staying way overweight cash for long though, as transient opportunities turn up pretty regularly. It is much easier to find that kind of opportunity in this toppy market than it is to find deep value in typical DG fodder.
I generally like to keep at least $40k-$50k on hand as opportunity cash. I'm not much of a believer in the efficiency of markets in pricing. Any time any headline hits, the market tends to over react going in one direction or another. The most recent deployment of opportunity cash was in energy during mid December. Most of those plays generated about 15% in a couple of weeks. For the most part those gains are banked and the investing dollars have been moved back to cash, waiting for the next opportunity. A good bit of our cash was also invested in longer term positions of energy stocks during the December sell off.
I generally like to keep at least $40k-$50k on hand as opportunity cash. I'm not much of a believer in the efficiency of markets in pricing. Any time any headline hits, the market tends to over react going in one direction or another. The most recent deployment of opportunity cash was in energy during mid December. Most of those plays generated about 15% in a couple of weeks. For the most part those gains are banked and the investing dollars have been moved back to cash, waiting for the next opportunity. A good bit of our cash was also invested in longer term positions of energy stocks during the December sell off.
Alex