I deposited a chunk of funds into my account on Friday worth about 1.5% of my total holdings. I will add that chunk of funds to DraftKings, Starbucks, Lululemon and Disney on Monday. The purchases will represent an 11% boost to my DraftKings stake, a 13% boost to my Starbucks stake, a 5% boost to my Lululemon stake and a 5% boost to my Disney stake.  I intend to  continue allocating excess cash to my brokerage account as that comes. Just for your information, I do like to keep a bit of a cash cushion and an emergency fund, which is all held in SWVXX (money market fund) on Charles Schwab. As that cushion gets comfortable enough, deposits are made into my brokerage account.

I have no plans to let the cash buffers build beyond where I feel they need to be. My view of the markets over the next few years has not at all soured. I want to have the minimum amount of cushion to make me comfortable; nothing more.  Despite the consistent macro-related noise and somewhat uncertain backdrop, this is what I feel is right for me. 

The next Fed funds move will be a cut. As a long term investor, I don’t care if that first cut comes this fall or a few months later. Multiple compression (outside of a half-dozen mega-caps) amid rate cut delays is exactly the kind of weakness that I want to be enthusiastically adding into. It simply coils the spring for future returns when policy does actually ease. What I mostly care about is that monetary policy will become more friendly in the near future, the economy still finds itself on reasonably healthy footing, unemployment is still reasonably tranquil and so the backdrop is modestly improving. Those ingredients would need to sharply change for me to want to build a larger cash cushion and change my tone. Hasn’t happened.

I will continue to invest in what has been the greatest wealth builder in the history of our planet – the U.S. stock market. Will that lead to explosive returns in the next week or month? Not sure. But I’m confident that these decisions will treat me well over the coming years. That is my horizon and that is how I operate. As a reminder, I am 27, unmarried, and have no children. My circumstances shape my risk tolerance and allow me to be a tad aggressive in portfolio management and position building. It allows me to embrace speculative bets like Lemonade with immense patience while I also allocate funds to the Amazons of the world. Your different circumstances could always call for a different approach.

Current Watch List:

My current portfolio is below. The two images contain the exact same data. I just included the 2nd because the brokerage screenshot is so hard to read.