Ever since I started to invest in stocks a few weeks ago, I have noticed that my cash balance in my trading account has always been short of funds.
This has proven to be quite problematic. All of my money was tied up in my managed growth portfolio and when it came for the time to make discount stock purchases, I found myself short of cash. This wouldn’t have been that big of the problem if the mutual fund transactions do not have any processing time. However, waiting 3 to 5 days to sell my mutual funds is just too long for me.
This is why I have made the decision to sell my entire managed growth portfolio. Well, it’s part of the reason. The other part is because this managed portfolio has only yielded 3% this year and I’d figure I could yield a higher return by trading stocks.
Moving away from Indexes
On top of the managed portfolio, I also have some of my money tied up in indexes such as the S and P 500, Blue Chip Equities and the Dow Jones. I have a love/hate attitude towards these indexes, especially the S and P 500.
Unfortunately, similar to my managed mutual fund portfolio the processing and holding time is something I find extremely inconvenient. I have also decided to sell my shares in these indexes and to purchase individual stocks from the indexes instead.
Stock Research Update
Now that none of my money is tied up in a managed mutual fund portfolio or in any index, I have the freedom to choose whichever stock I want to invest in. Currently, I have been looking into promising stocks in the financial, consumerism and retail sector.
I am also trying not to invest heavily into the US market but the Canadian and International market as well. I figured that if something was to cripple the US market, my diversified portfolio would not tank.
Thanks for reading and I will keep you updated on where I go from here.
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