Hi fellas!
I’m a 29yo italian doctor, working in Romandie since 2017. As of now, I started investing and planning to do so - in parallel with some entrepreneurship ideas just not to lay all my eggs in the same basket - until early retirement.
My strategy is a very basic one :
VIAC with max yearly deposit (probably switching to finpension soon) all invested in stocks
Pillar 2 for the bonds or bonds-equivalent
All-world portfolio on IB with 50% VTI / 40% VEA / 10% VWO .
Until now I’ve only be investing in VEA and VWO, and I’m waiting for the USA market CAPE ratio to fall below 30 (ideally <20) to invest the sum I’m keeping for VTI in my bank account.
Quick question on the way: do you think this is a good idea? Is it “too much” market-timing? Because AFAIK CAPE ratio points out quite reliably overvalued markets, and USA’s one is sky-high…
It’s probably worse than market timing. The higher valuations in the USA are related to growth which is plentiful in the US. Old world and old economy has basically stagnated for the last decade and it may just as well continue to stagnate for another one.
The current selloff related to US-elections and second wave of covid may actually be your best chance to jump all in.
Thank you all for the tips, I have to admit that, even if it’s been several months that I read almost everything that I can find - ERN, MP, here in the forum - there are still things somewhat obscure about FIRE.
I based my reasoning on the first 3-4 chapters of the Guide to SWR by BigERN, that I found incredibly nicely written and very “evidence based” (being a scientist I like very much).
So basically the idea is that, since the alternative of putting the right (in %) amount of money in US market with low expected returns is to keep them in my bank account with zero-expected returns, I might as well invest them and grab what I can…?
I’ve been invested in the stock market for the last few years.
Only recently starting investing in VT and just moved to VIAC (Global 100 from February). The stocks are hand-picked (big corps and/or high div yield), going forward I might sell them and move more towards VT.
I’m aware it’s not well balanced in multiple aspects. What do you suggest going forward?
The stocks I bought since June, so I wouldn’t know what to compare it with. I could compare it to the VT it that period? I don’t think I’ll beat the market long term and don’t plan on manual picking going forward. The question is when/if I sell the shares I have and what I base my decisions on
It’s definately possible to beat the market with individual picks or an active approach, but most people (including professional fund managers) wont.
If you do not want to manage your picks actively, just sell everything and go with a passive all world portfolio. Alternatively, if your picks from June contain some big winners, let them run for as long as they keep on winning and sell the losers ASAP.
New to the forum, please allow me to understand some basic dynamics for my own benefit.
Having an account with Swissquote & Degiro is there a sensible way in deciding which one to pick if investing in ETFs that are available on both platforms. The simple answer would be to fill in the order form for 5k CHF and compare fees but what I do not quite grasp is that VT is denominated in USD while on Degiro there is the EUR version of the fund. As both should be identical what is the downside in holding it in either USD or EUR? As I would like to put some money in ARK funds which seem to be available at Swissquote only, but read a lot about low-fees at DEGIRO I could use a little help here.
Secondly, is there a point in breaking down VT in all world ex-USA & SP500, I would miss out on everything US based that is not listed on the SP500 right?
I will only answer to some of your questions as my knowledge is limited
First of all, on Degiro, you can’t purchase US domiciled ETF such as VT (Vanguard Total World Stock) or ARK ETF. This broker let you only invest in IE (Ireland) domiciled ETF such as VWRL (Vanguard FTSE All-World). Furthermore, VWRL can be purchased on different stock exchange (London Stock Exchange, SIX Swiss Exchange, NYSE Euronext, Deutsche Börse and Borsa Italiana S.p.A.). On Degiro you can purchased VWRL for free if you select the one which is listed on the NYSE Euronext (Amsterdam).
Second of all, on Swissquote you can purchased VT (US ETF) or VWRL (IE ETF) as you wish, but if you purchase VWRL on the SIX Swiss Exchange it will cost you less as it is one of the “ETF Leader” selected by Swissquote with a special price of 9 CHF whatever the amount of your purchase.
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