On Monday, the S&P 500 shook off fears of world tensions and rose 0.9% while Toronto rose 1.0%.
My recent approach of holding about 30% cash has cost me gains. However, I feel that it’s a good compromise. I benefit from a 70% exposure to equities if markets rise and I have the 30% cash to pick up bargains if markets happen to decline. On top of that, if I am successful at stock picking I may be able to beat the equity index in spite of the cash position. This approach suits my particular risk tolerance at the moment.