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Tuesday, May 1, 2007

My personal asset allocation

Indexfundfan wanted to know what is my personal asset allocation.

At the current time:

* property 30%
* equity 20%
* cash 50%

I have a high proportion of cash, due to my discomfort with the high level of the equity market and the low return on bonds.

My target asset allocation, when the equity and bond market corrects to a lower level, is:

* property 30%
* equity 40%
* bond 20%
* cash 10%

I may have to wait for 1 year to achieve this target allocation.

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