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Weiser Capital Management’s Michael Gault on how much of your portfolio you should allocate for cash.
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Yeah alarm.
-- with two Y twelve just around the corner we've got a strategy -- says whatever happens the market.
Investors yen meanwhile we shouldn't forget about power of cash our cash Michael Gault is senior portfolio strategist at wiser capital management.
Courtesy of Microsoft isn't right now you're not -- about 50% of your portfolio in cash right you just just a strong enough component to to make some quick.
Deal no absolutely not when we think about cash and portfolios were really thinking about providing the flexibility.
And being nimble and these volatile markets to be able to provide -- on the downside.
And also take advantage of depressed prices when we do see things a little more favorable on and make sense to make those investments.
You also suggest keep cash on the sidelines.
Even in good times as -- -- really I mean I.
How do you know went and you know change allocation.
Well I think it's really important I think it depends on the investor themselves you know depending on what their risk tolerances.
We spend a lot of time with target with our investors talking about this idea of budgeting -- and depending.
On -- would really what their goals and objectives are maintaining an appropriate cash balance will really provide them the flexibility is to -- to take advantage and to end to be able to mitigate.
Potential problems on line -- at one of the big actors of your portfolio love this is Muni -- absolutely -- Muni bonds.
When Meredith witness -- Whitney made her call and say that they were about to explode you -- -- that right you bought right incidentally we have confidence in the types of Paper that we were looking you know when we talk about municipal bonds and our clients' portfolios especially in that concept that -- the anchor of the portfolio.
We're looking at high grade to triple A double -- -- standing by themselves without insure the health of the insurance companies that did you buy -- when she was -- -- the prices down we work we were buying and we felt it was a good time to answer especially if you're looking at general obligation revenues and essential services we thought those were safe places for our clients.
Speaking of safe places let's elect large cap stocks so if you were feeling a little more comfortable taking risk like.
What where the riskiest bets right now absolutely and we feel safe in this uncertain quite well you know -- that we talk a lot about utility with our investors.
Chinese how many topped out at this -- well when I tell you -- Utility in the investment and specifically -- like large cap stocks without reason because they're not just provide it's not just an investment thesis that.
It's either gonna hit or not are being -- pushed around by -- the greater macro forces that we've seen drive the markets recently.
And so we're looking at large caps we're looking at dividends were looking specifically we can look at -- energy sectors pharmaceuticals.
And also some of the you know some of those other in the yield in your investments we talked about consumer senator is good that it's up but is it too early to go into retail.
You know I think it's -- I think we're remaining cautious on whether or not to jump into real tell right now you know that can you -- consider -- consumer sentiment is up in that we're seeing part of this holiday season.
S on the congress session last week they're like 20% from the -- -- -- absolutely but let's not forget the what's looming in the background and and certainly what's going on in Europe is is weighing on investors' -- and weighing on the consumer's mind.
Yes that's got to be cautious the good ideas thank you so much Michael thank you -- -- rent adult good to see it priest.
