I manage my own account plus some others. Current earnings and capital preservation is the focus. These are large portfolios that outstrip current needs so the approach is conservative.
Here is what I believe:
The fed needs to fix its balance sheet so rates will remain high and maybe rise.
Mild to medium recession later part of 23.
As rates go higher tolerance to currently unprofitable activates will decline and high PE stocks will get pressed lower. Since money will tighten and inflation is continuing I am being stricter on stock criteria and evaluation and buying and selling stocks.
With that as marching orders currently have 45% real-estate, 10% assets and 45% investments.
Of the 45% investments currently comfortable with 50% in cash like investments 45% percent equities of which all need to pay minimum 3% Divs, 50% Div payout or less and PE 22 or lower. This will give up some long term appreciation but will provide reliable stability. The other 5% stock are bets that will outperform in the future.
Cash parked in multiple money market funds earning 4.2 -4.5% paid monthly. Currently using SWVXX, SNOXX at Schwab , FNSXX, VMRXX, WMPXX at Wells Fargo and SPRXX at Fidelity. Looking at Tbills currently 5%+ for 6-12 months but money is tied up an no monthly payout. It is just too easy to do MM funds but if it goes higher I might grab some.
Mainly there is a lot more cash than in the past but this is meeting the needs of everyone and providing liquidity which gives flexibility. YMMV
