Hi Steve, Re: vealies during 2012 and recently.........
Back in 2012 a certain risk indicator I use (smile) was suggesting just 19% cash for diversified holdings and we were at 19% cash at that time. Recently the same risk indicator has been showing 25% to 27% cash indicated and this holding is at 28% cash (from the sale back in October, 2013).
In October of last year the risk indicator had briefly called for 29% cash so it allowed that sale that put cash in the 28%-29% range. The cash is now slightly diluted but still closer to 28% than 27%.
In that portfolio the lowest cash level is currently for the Basic Materials sector at 21%. That one sold some shares at the beginning of July and is still about 5% away from selling again. The highest level of cash in that portf is in Consumer Cyclicals, which hasn't had a sale since December. It's currently showing 30% cash as the last sale overshot the suggested cash level at the time by a bit even with a minimum sized order.
So of the 13 ETFs in that portfolio all but two are within 2 points of the current suggested level (one high and one low). The risk indicator has been stuck between 25% and 29% for months on end. This portfolio is highly diversified, representing somewhere around 2500 individual company stocks through the representative ETFs.
Best regards,
