Our updated risk evaluation of the US economy has the odds of continuing recovery at 70%. Not too bad; but remember - we don't forecast, we just place estimated odds on outcomes. However, plugging this assessment into our Core Portfolio still yields a cash position of 45%. You can see our complete assessment and allocations here.
Why so much cash?
The Core Portfolio is a very defensive strategy - designed for two reasons - under performance and preservation of capital. As I outlined here - this portfolio embraces under performance.
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