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Mildly related question: European tech workers, what are you doing with your (monthly) savings? Hoarding euros? Converting to USD? $SPY? Gold? The same as alwa
by yreg 4y ago
Mildly related question: European tech workers, what are you doing with your (monthly) savings?
Hoarding euros? Converting to USD? $SPY? Gold? The same as always?
- martin_a 4y ago> The same as always? This. Yes, there's about 8% inflation in Germany but for people with higher incomes, it's not that bad (yet). My ETFs/stock portfolio has even gone up after a ditch when the war started, no real need to worry.
- hankchinaski 4y agoLong SPY and as a consequence USD.
- IMTDb 4y agoDiversified stocks and bonds, same as always. When it goes up, you get return on what you have already invested so far. When it goes down, you are buying at a discount. I am not trying to time the market, but create some capital for my retirement in 30 years, so whatever happens in the next 5/10 years is mostly less irrelevant. There have always been crisis, and there will be others.
- deleted 4y ago[deleted]
- newaccount2021 4y ago
- rurban 4y agoI"m still waiting to bit to buy at the best discount. Middle of winter seems to be the best time to invest. Stocks, bonds, gold, new car. Maybe buying a house, as long it is going down.
- user_named 4y agoAll in China equities
- cm2012 4y agoChina is on the verge of recession themselves
- odiroot 4y agoProbably makes sense to pay off your mortgage if you have one.
- bgorman 4y agoWhy would you do this in a time of high inflation?
- h4waii 4y agoIdeally, so you have a place to live, regardless of the outcomes and influences of inflation et al. Sure, buying real estate is seen as an investment, but it's also a spot to live and to keep all stuff to help or hedge your enjoyment of life. Some people just want to live, debt free, and be left alone.
- vba616 4y agoI am concerned with having a place to live, as distinct from preserving my current home. If I ever have to leave my doomed home with only what I can carry, I'd rather owe as much as possible at that point in time. I think that debt owed to human beings is strictly better than the same amount of equity just vaporized with no possible recourse.
- tjansen 4y agoDuring an inflation your salary is likely going up, and so are all other assets that you own or buy. Let's say you owe 100000 EUR for a 200000 EUR house, pay 2% interest, inflation rate of 10%. Your net worth is 100000 EUR in the first year. If you repay 8000 EUR, the next year you owe 92000+2%*92000=93840 EUR and your net worth is 220000-93840= 126160 EUR. If you repay 4000 EUR and invest 4000 EUR in gold, next year you owe 100000-4000+2%*96000=97920 EUR, your gold is worth 4400 EUR after inflation and your net worth 220000-97920+4400=126480 EUR. Plus you have improved liquidity. If the inflation rate is higher than the interest of your loan, it's often better to invest in inflation-proof assets.
- daydream 4y agoIn times of uncertainty and volatility and especially inflation, if you have enough money to pay off your mortgage, you might not want to actually pay it off. Assuming you have a fixed rate mortgage at a low interest rate, not only will the value of your debt be inflated away, but you retain optionality. Meaning you can use that big chunk of money as a hedge against a job loss or other negative event, you can use it to invest as your see opportunities, etc. Of course the flip side of this argument is if you do pay off the mortgage, you get a guaranteed rate of return equal to your mortgage interest rate.
- bluedino 4y agoCrypto!
- ibz 4y agoIs it still relevant after the coming ETH merge? The way I see it, if crypto moves to PoS, it becomes very centralized and simply a playground for whales. I see it as a Bitcoin (hard money) versus fiat currencies game, with crypto falling under "fiat".
- ibz 4y agoDiversified as always. I moved to a rural area 10 years ago, so firewood is always a must. Also plenty of land. Also any tools that I think I would need. Savings only in BTC and some physical gold. No stocks or fiat.
- seydor 4y agoi have always invested in US equity (who do you think is propping up US stocks? haha) . my european equity from many years ago is down. I dont think it s a good idea to keep cash when euro is weakening and recession is coming. It will not last forever, but must hedge around it
- Markoff 4y agoI'm luckily paid in dollars, so I keep dollars and just small amount (few months worth expenses) in local currency, bought apartment without mortgage and have other big money in mixed stocks, but mostly US. When in crisis always go for US since they are independent and isolated. Hoarding euros would be horrible idea, euro will go lower, should keep only necessary amount in euros and keep everything else in USD.
- type0 4y ago> euro will go lower, And German and other eurozone exports will increase. It is temporary bad for EU citizens but in the long run I don't see economy suffering as much as fearmongers predict
- Markoff 4y agoWhat is EU exporting outside EU in sectors where are employed many people? Doubt some cosmetics will save us.
- t0bia_s 4y agoIf you can speak about savings, then you are fine.