dead-money
Rocket to the Moon
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Post by dead-money on Apr 17, 2021 13:05:14 GMT
So I sliced off some profits from the rocket / rollercoaster that is the USA market yesterday; where to invest now to provide some stability / less downside volatility ?
(I've already got a core portfolio of World All-Cap and Satellite portfolio of climate change and healthcare thematics plus a precious metals basket.)
So what's going to be hot for 2021-22 and what's going to turn cold ?
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 17, 2021 13:33:03 GMT
So I sliced off some profits from the rocket / rollercoaster that is the USA market yesterday; where to invest now to provide some stability / less downside volatility ?
(I've already got a core portfolio of World All-Cap and Satellite portfolio of climate change and healthcare thematics plus a precious metals basket.)
So what's going to be hot for 2021-22 and what's going to turn cold ?
I'll gaze heavily into my Crystal Balls dead-money and get back to yer. 
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dead-money
Rocket to the Moon
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Post by dead-money on Apr 17, 2021 13:41:47 GMT
Well based on past outcomes, I should put up a poll and then pick the least favoured options... 
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dead-money
Rocket to the Moon
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Post by dead-money on Apr 17, 2021 15:59:12 GMT
"The answer to your question depends (a) on your risk profile and (b) your style (e.g. growth vs income, value vs momentum, macro or not etc. etc.) (c) your choice of product (i.e. are you an individual equities type of person or strictly collectives)." Currently seeking capital growth, but likely will move to a capital preservation mode in next ten years. Given I hold P2P & EIS, I'm willing to take considered risks.
No interest in individual stockpicking, so strictly collectives, with strong preference for ETFs over OEICs.
Equities are 80% of investments held, with Core World holding being 80% of that, so it's within the small satellite portfolio of thematic ETFs, I'm willing to dial up the risk factor.
NB No interest in alt coins, NFTs, etc. that's a leap too far into virtual world vs. real.
Currently evaluating various EIS / SEIS funds, otherwise it's probably a climate change / sustainable world niche ETF.
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hazellend
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Post by hazellend on Apr 17, 2021 19:31:33 GMT
So I sliced off some profits from the rocket / rollercoaster that is the USA market yesterday; where to invest now to provide some stability / less downside volatility ?
(I've already got a core portfolio of World All-Cap and Satellite portfolio of climate change and healthcare thematics plus a precious metals basket.)
So what's going to be hot for 2021-22 and what's going to turn cold ?
Reinvest into world all cap
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dead-money
Rocket to the Moon
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Post by dead-money on Apr 18, 2021 10:33:23 GMT
So I sliced off some profits from the rocket / rollercoaster that is the USA market yesterday; where to invest now to provide some stability / less downside volatility ?
(I've already got a core portfolio of World All-Cap and Satellite portfolio of climate change and healthcare thematics plus a precious metals basket.)
So what's going to be hot for 2021-22 and what's going to turn cold ?
Reinvest into world all cap Yeah, I know that's the dull, sensible, unexciting thing to do... Does still result in 60% in USA market again, but guess that's just the nature of market capitalisations nowadays.
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Post by Ace on Apr 18, 2021 10:59:33 GMT
Reinvest into world all cap Yeah, I know that's the dull, sensible, unexciting thing to do... Does still result in 60% in USA market again, but guess that's just the nature of market capitalisations nowadays. Plenty of exciting opportunities in P2P for one's fun money  How about AxiaFunder's case that's currently in finding? A forecast 66% pa return if the case wins, though probable total loss if the case fails. That should pass the excitement test. Obviously best to diversify across a number of cases to reduce the possibility of a wipeout.
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macq
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Post by macq on Apr 18, 2021 12:54:52 GMT
"The answer to your question depends (a) on your risk profile and (b) your style (e.g. growth vs income, value vs momentum, macro or not etc. etc.) (c) your choice of product (i.e. are you an individual equities type of person or strictly collectives)." Currently seeking capital growth, but likely will move to a capital preservation mode in next ten years. Given I hold P2P & EIS, I'm willing to take considered risks.
No interest in individual stockpicking, so strictly collectives, with strong preference for ETFs over OEICs.
Equities are 80% of investments held, with Core World holding being 80% of that, so it's within the small satellite portfolio of thematic ETFs, I'm willing to dial up the risk factor.
NB No interest in alt coins, NFTs, etc. that's a leap too far into virtual world vs. real.
Currently evaluating various EIS / SEIS funds, otherwise it's probably a climate change / sustainable world niche ETF.
Guess you are looking at ETF's due to fee's but not sure many sustainable ETF's don't end up investing in the usual tech stocks so you many end up back with what you just sold out of i.e UBS sustainable world (UC44) has about 12% as its top holdings in 3 of the usual tech companies and is very USA heavy. Not advice but more niche might be something like Impax Environmental Markets which i use and avoids the usual names and has performed pretty well (so far). There is also Keystone positive change IT which is in the early days of having its remit and name changed by Baillie Gifford after they just took it over and will be run similar to their OEIC fund.Also sustainable funds managed by Mike Fox at Royal London who has done well over the years and was One of the first to look at ethical investing while at the Co-op or Liontrust funds who have also been doing it for a while
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hazellend
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Post by hazellend on Apr 18, 2021 18:11:39 GMT
Guess you are looking at ETF's due to fee's but not sure many sustainable ETF's don't end up investing in the usual tech stocks so you many end up back with what you just sold out of
Yup. One of my big beefs with ETFs is they just feed the herding fire.
Similar to macq, not advice (especially as what follows is based on 2 minutes on a screener and copy/pasting what comes up), but if you look towards the lesser known corners you might find something that doesn't have FAANGs in it :
- Deutschland Ethik 30 Aktienindexfonds
- UBS LFS - MSCI EMU Soc Responsible
- Lyxor S&P EupeParisAligned Climate
I have only had a brief look at the constituents lists for the above, so don't complain if there's a FAANG hiding in there.  Good news, global index funds don’t feed herd mentality, so your biggest beef is unwarranted!
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hazellend
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Post by hazellend on Apr 18, 2021 19:41:08 GMT
Good news, global index funds don’t feed herd mentality, so your biggest beef is unwarranted!
Complete and utter bull excrement.
ETF are effectively a form of leverage in the markets. They ultimately amplify the concentration of assets on the same ideas. Hence "feeding the herd mentality".
So many dumb retail investors think FAANGs are the next best thing, so they pile in with equities and leveraged tools such as CFDs and spread bets.
More dumb retail investors from a different group think passive investing is the next best thing.
Buy ETF -> ETF contains FAANG -> Act of buying merely adds to upwards pressure on FAANG.
You might seek to say "nothing wrong with upwards pressure, price goes up, win-win".
Well no. Highly concentrated upwards pressure leads to an unhealthy market.
Which is basically what you see in the US indices which are basically FAANG trackers with x-hundred random names tagged onto the end of the sheet that don't have much effect.
Its not rocket science to comprehend.  FAANG is < 10% of the FTSE all world.
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hazellend
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Post by hazellend on Apr 19, 2021 20:09:18 GMT
FAANG is < 10% of the FTSE all world.
Yawn. Don't waste my time.
Is FTSE All World the only index that contains FAANG ?
Hard fact. 33% combined CSO of FAANG is held by ETF.
Hence the vicious circle of the herd-thinking.
To repeat myself from above :
Buy ETF -> ETF contains FAANG -> Act of buying merely adds to upwards pressure on FAANG
Hence the market pricing is skewed, based on herd buying ETFs and not driven by valuation.
It is not healthy. End of story.
Sorry to disappoint, but it is healthy and it’s not the end of story as I continue to maintain a 100% equity portfolio of entirely an all world ETF (not including my DB pension. I like to sit back and feel smug about outperforming most overpaid active managers 
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foolsgold
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Post by foolsgold on Apr 20, 2021 17:18:30 GMT
UK market was looking historically cheap and still is.
You could look at the likes of Temple Bar Investment trust or a bit more riskier like Independendent Investment trust.
Ive got 10 percent in a Gold ETF but not impressed by it in the short term
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Post by overthehill on Apr 20, 2021 18:10:22 GMT
Rather than me sounding like a self-invested Baillie Gifford salesman, this is a good article, performance across the whole spectrum of funds has put most big names in the shade. Incredibly, their charges are lower than any other actively managed funds that I've ever invested in, that boosts returns as well of course. None of this 2% pa + performance charges at BG , most of their fund / investment trust charges are 0.5%->0.75% pa.
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IFISAcava
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Post by IFISAcava on Apr 20, 2021 18:53:36 GMT
Rather than me sounding like a self-invested Baillie Gifford salesman, this is a good article, performance across the whole spectrum of funds has put most big names in the shade. Incredibly, their charges are lower than any other actively managed funds that I've ever invested in, that boosts returns as well of course. None of this 2% pa + performance charges at BG , most of their fund / investment trust charges are 0.5%->0.75% pa.
I have some in various BG funds for the part of my portfolio over and above the core passive etf/fund holdings. I think they keep charges low by having small portfolios and not trading a lot (a bit like Fundsmith - though Terry has raked it in with double the charge). They are tech heavy, and a lot of the performance relates to some massive position in Tesla at the right time, but hats off to them. As ever, unlikely they will keep it up forever, but I am staying with them for now.
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sd2
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Post by sd2 on May 20, 2021 16:09:56 GMT
It is looking like value is back in fashion. UK being one of the best bets. Although Murray International if you want to go global value.
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