Poll: do you have a target allocation to stocks?

Hi all

People on this forum have several approaches to asset allocation. I’m curious how we distribute! Stocks below includes stock ETFs or any mutual funds invested in stocks.

  • I invest in stocks all the assets that I can freely invest (except a few savings in cash).
  • I have a percentage target allocation to stocks and bonds (or cash) and rebalance regularly.
  • I have stocks but I have no precise target allocation. I follow my instinct to buy and sell.
  • I have no stocks yet.

0 voters

I’ve got a % allocation but am currently pondering if a CHF amount allocation doesn’t make more sense, that is:

  • whatever amount I feel comfortable with in cash as an emergency fund (for me, CHF 25,000) ;
  • 5 to 10 years of expenses in bonds, in which I could dip if the market falls and until it recovers ;
  • the rest in stocks.

That would work once I’ve reached a certain threshold but as an early accumulator, I can’t fully fund the bonds part and am not willing to invest solely in bonds until I have, this means I must take additional risk for the time being, which would probably send me in the first category (EF in cash, rest in stocks).

How do y’all account for real estate (own homeownership and rentals/commercials investments) and 2nd pillar?

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Indeed, @Wolverine. I have considered this as well. Actually, when I have reached more than 5 years of expenses in bonds, I will consider increasing my percentage of stocks. When you think beyond 10 years, the most important risk becomes inflation, not yearly ups and downs.

I’m not sure whether I will switch to a fixed amount of bonds though, because I would like to keep some rebalancing bonus. I have something hybrid in mind.

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I have worldwide diversified funds invested in REITs and funds. I don’t own any real estate directly, not even my flat. I just have the feeling I would have all my eggs in the same basket and don’t want to go through the trouble if there is a storm or something (but being one’s own landlord has its advantage too). I also don’t want to have any leverage, which amplifies real estate price fluctuations. Also I don’t want to have more than 5% of my assets in real estate as stocks have a better risk return profile.

I keep my 2nd pillar separate in my mental accounting because I cannot control it and can also not use it for my expenses if I lose my job. I know many people here consider it as bonds. I wish I had the possibility to invest my 2nd pillar in stocks, getting the returns and of course supporting the risks too.

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I’ve also thought of another alternative in which, stocks that have been invested for more than 10 years already have a >0 return and can be sold in a downturn, reducing and/or negating the need for bonds. It’s just a thought for now, though, and I haven’t explored it to put numbers on it. I’m absolutely not sure it holds in case of 50%+ downturn.

For second pillar, what I’m pondering is whether or not to account separately for homeownership. With current returns, my second pillar serves mostly as a reserve for own home buying. What kind of home I am willing to buy is not really a financial decision to me, but more of a personal comfort one so I’m wondering if I shouldn’t rather count it as an expense (with a resell value) and just neglect 2nd pillar and own home when considering my actionable portfolio or to account for it all (in which case 2nd pillar is bonds for me).

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I don’t own any RE so I have 5% of my assets invested in Vanguard Real Estate Index Fund ETF Shares (VNQ). I consider my 2nd pillar as bonds from my asset allocation point of view.

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I invest everything in stocks what I’m able to save. My overall stock allocation (including emergency fund and pension fund) is 80% and will probably stay there till retirement. Can’t see me investing >4x more than my total 2nd pillar contribution.

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I’m 100% in stocks, with 55-60% of my portoflio in passive ETF and the rest in single stocks or sector ETFs.

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My target allocation is 80% stocks (mostly passive ETF, no single stock), and 20% in bonds and cash. No crypto because I am skeptical.

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AA: 90/10
PK considered as bond and being >10%
So i invest 100% in stocks: Max in VIAC, then 95% VT and 5% play money (for the moment ARKK)

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What chf bonds would you choose?

And that tricky question raises another one: I was about to reply that, right now, my 2nd pillar covers my bonds allocation so I haven’t delved deep into the question as of yet, but that’s not exactly available money in case things go dire, so if I go for the 5-10 years of expenses in bonds route, I’ll have to count it outside of my 2nd pillar.

To answer your question, right now, I’d go for a term deposits ladder in some trusted banks instead of bonds. I’d stay away from most corporate bonds so, when/if rates raise, I’ll check those issued by the Confederacy, the Kantons, the kantonal banks provided they’re backed by their Kanton and a few cities I deem trustworthy. If I’m able to find a decent bond fund, I may go for it (but haven’t found one that strikes my fancy as of yet).

Same here.

Short-term Swiss government bonds would be my preferred bond allocation but right now, that well has dried up.

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Will be deleted tomorrow

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40% Stocks, 10% CoCos/Co, 20% Alternatives, 25% Real Estate, 5% Bonds?

100% Stocks, but not really representative with my modest capital ^^

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You mark the text of the person and press the „Zitat“ button.

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IPO participation/VC or regular undervalued shares?

How do you value your CoCos? Do you initially value them as Equity?

Do you actually convert them or do you just sell the rights and keep the coupon?

That sounds interesting. What is Infrastructure Equity? Stocks of power stations?

I assume REITS or at least a fund. Is there a particular reason for not holding Real Estate in your own name?

Can you name an example?

Excuse my intrusive questions. I am hooked by your portfolio and want to learn more about it.

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