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Stock impact report

As stocks rally, what's the right amount of cash to keep on hand? [Globe and Mail, The (Toronto, Canada)]

Raymond James Financial, Inc. (RJF) 
Last raymond james financial, inc. earnings: 4/29 04:35 pm Check Earnings Report
US:NYSE Investor Relations: raymondjames.com/investor-relations
Brianne Gardner, investment advisor and co-founder of Velocity Investment Partners at Raymond James Ltd. in Vancouver, says cash weightings depend on risk levels, the state of the business cycle, volatility and specific stock opportunities. “As active managers, we will raise cash and get defensive, and are comfortable keeping some dry powder on the sidelines to protect our clients' profits and manage their downside risk,” she says. When fully invested, her client accounts will still have 1 to 2 per cent cash, but they've gone as high as 40 per cent in extreme bear market scenarios. She notes her firm has actively been taking profits in recent weeks, moving to about 7 to 10 per cent in cash across client accounts. Cash was long ignored during a period of low interest rates, Ms. Gardner says. “It's an underrated asset class, but very important from a risk management and tactical perspective.” Stan Wong, portfolio manager and senior wealth advisor with Scotia Wealth Management i Show less Read more
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