Chronicles of 2025

Investing / Others
632

I have established the following rules for investment decisions for my ETF portfolio:

  1. Invest available cash if equities make up < 45% of net worth
  2. Reinvest only dividends if equities are between 45%-46% of net worth
  3. Take no action if equitities are between 46%-47% of net worth
  4. Sell down to 46% if equitites exceed > 47% of net worth

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  • For most of 2024, I was in scenario (2).
  • End of January 2025, I found myself in scenario (3) for the first time ever.
  • In February, I briefly moved into scenario (4) for a couple of days, but was back to (2) by the end of the month.
  • Now, I’m almost back to scenario (1). Thanks to my approach I’ll have cash ready to deploy at the beginning of April, if my system calls for it.

With dividends and salary savings continuously pushing the equities share downward, buy signals will emerge from time to time, even in a flat market.

Interesting times.

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