I’ve got some money in a portfolio I’m building, right now it is about 85% stocks, 15% cash-equivalent. This is not my 401k, which is an actively managed fund. I have several different stocks now across different industries and different sizes (e.g. large mid and small cap). I’m 26 so I’m willing to take on some risk, but at the same time I think most of the market is overvalued (average P/E ratio is hovering around 20 and that is way too high for me), thus Id like to branch out from stocks.
Id like to put that 15% cash-equivalent to work but I’m not sure where to start. It isn’t enough to get into property (a long term goal is own rental property), but enough to maybe buy into some bonds, a few shares of royalty trusts, or maybe something more creative. I was originally going to put some money in peer to peer lending, however Lending Club has been in the news for fraudulent lending practices so I am reluctant to put my money down on them or a similar business.
Really, Im looking for suggestions for further research, not direct financial advice. That 15% cash also isn’t super liquid (it will take about a week to get to me) so if Im going to spend it on hookers and blow Ive gotta schedule than in first.