| 5-6% would be too low for me. I think 10-15% is a fair target as the long-term average of the S&P is around 10% and that doesn’t include the dividends.
Of course a lot depends on circumstance. I don’t have a mortgage to look after or a family to feed as that would definitely make me take a larger cash/cash equivalent position.
The market outlook is uncertain at the moment and I don’t know which way it’s going either. I’ve slowed down my investments and am building a bigger war chest. However, I’m not going to completely stop and have my eye on a few stocks that look attractive that I’d like to pick up. I also prefer direct stock investment and use mutual funds to give me exposure to other areas.
I’ve only been actively investing for less than 2 years so I think I’m still pretty new to this and I haven’t been tested by a bear market yet. Though I hope that won't happen for a while. |