~$150k ($250k total) of Cash to Invest In
Hey all,
Been thinking of rebalancing my personal investment portfolio. Currently have ~150k+ in cash, $100k in preferreds. Choose preferreds as a go-to strategy at first because of tax advantage & ~7% annual coupon. Not sure what to invest in given equity valuations are at high, and dumping it in the S&P seems risky at this point...although should not time the market over a 30+ year horizon. I have a pretty deep understanding of securities analysis, and been doing some deep dives on companies, but not ready to pull the trigger on a 30k position in a single company (probably why Im on the sellside...BANC gave me a f'king heart attack)
Am 27 in finance, risk tolerance medium (feel free to let me know if I need to be more specific).
Not looking to blindly follow but rather cultivate some ideas, know many of you here have a much better understanding of personal finance than I do.
Thanks!!!
I won't give you any advice but I'll describe what I'm currently doing with my investments if it can help you find some ideas from there. Btw I'm sellside as well, interested in views of other professionals from the buyside.
I'm keeping my age as a % of my overall portfolio in bonds and treasuries (I'm 27 as well, so 27% - and I rebalance every once in a while). The rest is split between: - 50% in "core" stocks: large cap names, indices, defensive stocks like airport/utilities etc - 25% in a sector rotation strategy, so its currently sitting in oil&gas and mining and it's been doing very well since the beginning of this year. My general thinking for this particular sector was that development projects for these companies were based on unrealistic continued demand growth from Asia/China, so an economic slowdown with an oversupply coming online hit them hard (I'm simplifying ob. but that's my general idea). The companies that are still here today have turned it around and are operating in a low commodity price environment. Because I'm bullish on China over the long term, I believe they are strongly exposed to massive upside. When that happens I'll move on to allocate that 25% to the next sector I believe is undervalued (betting on infra/utilities to crash next) - 15% in region ETFs, currently mostly exposed to Europe - again I believe the uncertainty caused by brexit and the slow growth in the region is priced in. Being bullish on that region for the long term makes European investment vehicles undervalued IMHO - 10% play money: trading random stuffs when I feel I can profit from a short term trade (anything from FX, gold, options etc.)
I'm also starting to educate myself in property investing, with the aim of developing a property portfolio in undervalued regions (I'm planning a trip to Spain for that), and also being able to generate a second stream of passive income if I can set it properly from the start.
Anyways, good luck!
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