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Right now is a very risky time to invest. It could be that it turns out to be a good time, because stocks are about 20% below the all-time high. But there could
by tjansen 6y ago
Right now is a very risky time to invest. It could be that it turns out to be a good time, because stocks are about 20% below the all-time high. But there could also be a second crash, when investors realize the real impact of the economic crisis caused by Covid-19. In addition to that, there's the risk of inflation caused by government bailouts.
What I'm doing right now is keeping about 1/3rd in gold ETF as inflation protection, about 1/3rd in stocks ETFs and the rest in cash. Once the whole thing is over, I will probably move back to stock ETFs.
- basch 6y agoAre you familiar with https://portfoliocharts.com/portfolio/golden-butterfly/ https://portfoliocharts.com/portfolio/golden-butterfly/ 20% Total Stock Market 20% Small Cap Value 20% Long Term Bonds 20% Short Term Bonds 20% Gold You could replace short term bonds with Cash, TIPS, CDs, Bitcoin.
- tjansen 6y agoNot this portfolio, but I don't see the point of buying bonds anymore, at least when you invest a relatively small amount of money. Low interest, risk is relatively high compared to what you can earn, and no inflation protection.
- basch 6y agoLong term bonds benefit from low interest rates. https://portfoliocharts.com/2019/05/27/high-profits-at-low-rates-the-benefits-of-bond-convexity/ https://portfoliocharts.com/2019/05/27/high-profits-at-low-r...