The Key to Investing

There are some things that professional investors know that many of us don’t because of their experience, education and instinct.  But there is something that places us all on the same playing field, and it’s not a huge secret – its cash.  The key to investing is having cash available.

Cash is the key because it gives us options.  Take a look at your portfolio and determine how much you have invested in the market.  Are you investing more than 75% of your disposable income?  If so, that might be a mistake. Maybe you should think about only investing 50% of your disposable income in the market. 

In 2010, keep cash on hand in order to take advantage of great investment opportunities as they present themselves.