Replies to post #43195 on A.I.M. Users Bulletin Board (AIMUSERS)

[Adam]

Hi Toof, I'm one of the ones who believe in low cash reserves even at this point when the market has been on the up side. To some extent the amount of cash depends on whether you have new income or are retired. For someone with some income and is diversified with index ETFs around 20 % cash is probably optimal. The cash acts as deadweight and will drag down your performance for years while one waits for a market crash.