Portfolio Allocation – Where Should I be Investing?

by JDH on February 15, 2007

Over the last week a number of contributors to this blog and the Buy-High-Sell-Higher Forum have raised the issue of portfolio allocation. Specifically, how much should be invested in which sectors and stocks?

Here’s how my portfolio is currently allocated (as of the close yesterday):

  • Uranium stocks – 62%
  • Cash – 18%
  • Silver stocks – 11%
  • Gold stocks – 7%
  • Other metals – 2%

For those of you who follow the Dines Letter, my portfolio is allocated as follows:

So here’s my question: what makes sense? Should I have 62% of my portfolio in uranimum stocks? More? Less? Or are there other stocks and sectors I should be looking at?

My plan after the close on Friday is to review all of the charts on all of the stocks I follow, and on Monday, based on that analysis, I plan to deploy my available cash (since I think 18% cash in a strong bull market is too much). Or am I wrong? What is the appropriate amount of cash to have on hand?

To make it easier for everyone to chime in with their thoughts, please post your comments on the Buy-High-Sell-Higher Forum – Portfolio Allocation Board (which I just started today).