Hi Allen,
"what am I going to do with my large cash reserves"
That is a big problem, even more so because we are constantly selling, this week sells: VNQI, VGK, DLS, VPL. (cash level 27.9%)
Cash could go into short term government bond funds, for example I like VGSH.
An old idea was to use the permanent portfolio as a cash substitute, because of its price stability and reasonable growth.
Because I have AIM machines in euros and in US dollars I would need 2 permanent portfolios. Another thing is the relative movements of the euro and dollar which need to be AIMed as well. Lately the thought came to me to create a combined 2 part permanent portfolio of 8 asset classes: in the US: VTI,IAU,VGLT,VGSH and in the euro zone VGK,IAU,IBGL/IS05,cash(these ETFs are used because of free trades at my broker). This 8 part portfolio can be rebalanced at times to 12.5% for each part, rebalancing economic climates plus euro/dollar volatility.
Currently a project under development.
Best,K
