A lot of people have asked what stocks I’m buying. The answer is none.
I’m 75% in cash. That is the most cash I’ve had in over five years.
This isn’t a market call. It’s a lack of ideas. Interest rates are low. And my hurdle is high. My ideal is a stock with a 10% earnings yield that will grow. There are stocks like that out there. But they aren’t in my comfort zone.
This doesn’t mean I like bonds more than stocks. It just means I like cash more than stocks. Cash returns nothing. But it’s an option on future cheap stocks. It has value.
I prefer 25% positions. So it only takes a few good ideas to fill my portfolio. I expect to find those ideas soon. I’ve been expecting that for most of 2012.