Allow me to share with you my current “top-down” allocation—for the wealthy. In this market environment, with all the uncertainty….
Cash 25%
Fixed income 20%
Equities 40%
Alternatives 15%
These allocations can change any day at any time. They are not static, but tactical bets.
Even though it may seem like I’m a market bull right now, I’m really not. I just invest when and where I see opportunity.
That said, there is still a lot of risk out there. Minefields and unresolved issues. That’s why I’ve only allocated about 40% of my total investment portfolio to stocks, of which I’ve outlined certain sectors and names I like and have bought here recently.
Keep in mind, that even though I’ve waded into some bank names, they are ticking time bombs. The problems in the banking industry will not be in a hurry to disappear anytime soon, so trade in and out of the banks as the opportunities arise. This is where the action is, no doubt.
In closing, don’t be so sure about the relationship (inverse correlation) right now between oil prices and the stock market, either. It’s possible that we could see oil prices and stocks start to move in tandem. Should they move down together, that would be signaling a much bigger problem for us all. So don’t gamble your future, which is uncertain.
Better to adopt the Rich Man’s Allocation….more on this later….
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