The table showing the breakdown of my own portfolio has been updated. My cash position is at 22%. Given, that overall stock market indexes seem expensive I think having a substantial allocation to cash is appropriate. I may try to raise it. Note that I have no pure fixed income but I do have preferred shares and the Boston Pizza Royalty income fund units that provide dividend income. In today’s ulta low interest rate environment, I view cash as a sort of substitute for fixed income. Many people hold fixed income for stability. Cash offers the ultimate in stability but provides little to no return. (But these days short-term fixed income also provides almost no return and longer-term fixed income will not necessarily provide stability).
In looking at my own portfolio, I certainly have a very large allocation to Melcor. I don’t really want to sell any Melcor. But since I did add to my Melcor at prices around $13 it is probably logical that I should sell some of those shares. If the Q4 numbers come in weak or if they give a poor outlook for 2017 then I may regret not lightening up a little. So, I may sell a small portion of Melcor shares. But, I will definitely be retaining a large exposure to Melcor. I am just not a fan of selling shares at what could be half of their intrinsic value. I also have a large allocation to Toll Brothers. But with the continuing recovery in U.S. home prices, I am hopeful of a short-term gain in that stock.