No. of Recommendations: 3
my portfolio total return has beat the S&P index by 11.45% in the last year, while staying over 60% in cash.
Similar for me during the last 2-3 years. While this sounds perfect that we did beat the index without being even halfway fully invested, the question is whether that came with minimised downside risk compared to being fully invested. Definitely not for me as it was possible only with heavy leverage (read: Options), and I suspect it was the same for you. If so, we both were exposed to not less risk than somebody who was fully invested without leverage.
