(published early, as I am going to be in hospital for a few days)
This month, I offer some practical guidance for investors who have been banking portfolio profits for quite a while now. You will have taken on board the view that equity markets were expensive, especially US shares connected to the AI ‘boom’ (which shares have now started to decline in value in the main) and you are also concerned about the geopolitical risk factors in play, such as oil market supply problems, new tariffs from Trump, China’s push to get control of the Gold price and so on.
I know many readers have sensibly banked handsome profits and as a consequence have a higher than normal percentage of their invested asset base in cash. I myself am in that ‘club’ with upwards of 40% of my investible capital out of the market and on deposit.
If we are waiting for the time when stocks are cheaper, which could be sooner rather than later, what sort of purchases would most likely minimise market timing risk, an unavoidable aspect of introducing or re-introducing cash into the market for risk assets?
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