How much cash should you hold?

When the sharemarket puts in the surges that provide its long-term outperformance, it's important to be caught with your pants up.

Of all the issues an investor has to deal with, one of the most confusing is how much cash to hold.

I came across an example recently listening to a fund manager explain that he was keeping a (very) large slice of his investments in cash because he couldn’t find shares he considered likely to meet his 10% annual return hurdle.


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