I love the grounded reality of this channel!!! *If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you..prevent inflation*
As a passive investor, is it wise to buy market tracking index funds and ETFs from companies like Blackrock, Vanguard and State Street, even when they're at all time highs? I want to invest around 250K given the current market rally. Thoughts?
I've played with a few thematic ETFs and had mixed results. One of the first was Wisdom Tree Battery Solutions CHRG....we rely more and more on batteries, especially for EVs, right? Unfortunately I bought in just at the wrong time. A big chunk of the fund was based on Chinese companies and the China market had just peaked. I held it for 3 years before giving up and selling at a loss (luckily not too much money). The fund has still not recovered from where it was in 2021. I'm happy now sticking to global diversified funds.
I would say ‘not quite’, since certain themes have periods of over performance , depending on what’s happening in the world. For example, at the moment defence ETFs and crypto are going strong, because of geopolitical developments.
Thank you so much for this amazing video! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
Better invest into the relevant INDUSTRIES to hedge against if this megatrend faulters while also benefitting from the upside. Instead of AI/Cybersecurity/Innovators go for Technology/Information Technology specifically. Decarbonisation = Clean energy. Why? Because most of the ETF for those sectors will have a big chunk of the same successful companies in them as the thematic ETFs and they will be correlated heavily. If the megatrend flops, the thematic ETF will go down massively, but the industry one will eventually rebalance out those failed companies.
Hi @chrisbarlow5968 not at the moment but I have in the past. I played around with their S&P 500 3x levered fund and got lucky with my timing (bought April 27th 2021 sold on September 16th that year just before the Tech Wreck). Thanks, Ramin.
I've got AI and Blockchain themes in my fun portfolio. So far, so good... But they'll only ever be in the fun portfolio based on my risk attitude and capacity... Owning the whole market as core makes better sense to me.
I bought a Hydrogen Economy etf a couple of years ago which is now 60% down. Got in waaay too early, which is a risk when you are trying to predict the future.
Made the exact same mistake.I got out of most my thematics ETFs by now (not that one yet though). I had a cybersecurity ETF, an Automation and Robotic, they both did ok but still underperformed Nasdaq-100 so what's the point.. And when you get it wrong the holdings in the ETF are so correlated that the drop is huge as you saw with the Hydrogen ETF, i also had that case with a Chinese Tech ETF in the past. So i would rather stay away from subsectoriels ETF
Hi @jont96686 I suppose that's why a multi-thematic fund is less concentrated in a single theme so less likely to fall out of favour so sharply. Thanks, Ramin.
I and very interested in tesla stock price predictions now. Not just the regulators likely to aprove soon self driving, but the Utube US videos I am watching with the teslas self driving from home to a destination oftern with no driver intervention. They have been promising self drive for years but all of a sudden now it feels only a year or two away maybe.
Hi @dan-jh4mz Tesla is a nice example of expensive quality stocks increasing further due to some catalyst, rather like the Nvidia example I used in the video where the catalyst was the launch of ChatGPT. Thanks, Ramin.
Very good, but no one knows when it will start and when the bottom is. You keep waiting for it watching the markets go up only to find it never gets down to todays' price at the bottom, which you would have missed anyway.
@torus186 You're right of course, but it seems like once the crowd jumps on , it's too late. A massive dip ensues creating a better entry similar to the original price before the spike.
Just buy Bitcoin. The theme is absolute scarcity in a world of excess. Bitcoin's game theory means there is a real first movers advantage to those that adopt it early. It doesn't matter if it is at the individual level, that of a corporation, or even a nation state. If you don't have a Bitcoin position at this stage, it means you haven't put in the work. You don't need to buy 1 BTC, the smallest unit that makes up 1 BTC is a Sat, and there are 100,000,000 Sats in 1 BTC. Start stacking as much as you can while it's still cheap. You can still buy 1000 Sats for less than US$1. Don't wait until 1 Sat = $1. Dollar cost average into Bitcoin each week, hold it in self custody, and get on with enjoying your life. Two Bitcoin halving cycles later and the only regret you will have is that you didn't buy more.
@Pensioncraft yes , I also do tech via nasdaq etf . I consider 'clean water' to be a safe option as don't imagine that necessity will go away . Michael burry has conviction here as well I belive. My idea is the risk on big tech is countered by water . Only a tiny piece of my portfolio. A solar position in a mainly all world allocation
Hi @josepha9313 themes are often highly priced, but as I said in the video catalysts can come along (like the launch of ChatGPT for Nvidia or the election result for Tesla and Microstrategy) that can make expensive stocks even more expensive. That's the benefit of casting your net wide with a multi-thematic fund. I suppose you can create your own thematic basket which is infinitely flexible (and you can avoid Meta!) but that comes with the headache of rebalancing and monitoring trends and individual stock fundamentals. So it's always a tradeoff. Thanks, Ramin.
Hi @george6977 I diversify across developed markets. People often use themes to tilt their portfolio i.e. you hold a thematic fund alongside global or developed equity (or the S&P 500) as I say about eight minutes into the video. Thanks Ramin.
Hi @RalphWu55 about eight minutes in I discuss this: "And the reason why you hold the thematic funds is to try and outperform the global index funds. Now that might work, it might not. But if you don't hold too large a percentage of your allocations in the thematic funds, it won't be a huge risk to your portfolio" i.e. this is probably for the "fun" portfolio. Thanks, Ramin.
I love the grounded reality of this channel!!!
*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you..prevent inflation*
Michael Wayne sells double glazing as well😉
As a passive investor, is it wise to buy market tracking index funds and ETFs from companies like Blackrock, Vanguard and State Street, even when they're at all time highs? I want to invest around 250K given the current market rally. Thoughts?
Index Funds & ETFs: 40-50%, Emerging Markets (e.g., VWO): 10-15%, Dividend Stocks: 10-20%, Growth Stocks/Small-Caps: 10-20%, REITs: 5-10%. Be sure to seek professional guidance to ensure proper allocation.
I've played with a few thematic ETFs and had mixed results. One of the first was Wisdom Tree Battery Solutions CHRG....we rely more and more on batteries, especially for EVs, right? Unfortunately I bought in just at the wrong time. A big chunk of the fund was based on Chinese companies and the China market had just peaked. I held it for 3 years before giving up and selling at a loss (luckily not too much money). The fund has still not recovered from where it was in 2021. I'm happy now sticking to global diversified funds.
Hi @stevegeek I suppose that's why a multi-thematic fund might be less of a risk. Plus the best-performing themes change all the time. Thanks, Ramin
I bought Rolls-Royce PLC stock because I trust their products - for example their Modular Small Uranium Reactors which will boost the economy
I buy McDonald's stock because I like McDonald's
@@K3end0 🍔
I bought for the same reason. Unfortunately I sold about a year ago to takle the profit, not my best investing decison.
@@CB-fz3li It's a slow grower, I expect them to boom after their UK SMR is licenced and they start selling it to other counties for profit
MSUR what they have a product or an idea?
I'm investing in any corporation that has been dismissed by Kathy Wood.
Hi @MARTINA-gc3tq 8-) Thanks, Ramin.
Once you start diversifying across multiple themes you might as well just get a global fund.
Exactly
I would say ‘not quite’, since certain themes have periods of over performance , depending on what’s happening in the world. For example, at the moment defence ETFs and crypto are going strong, because of geopolitical developments.
Thank you for sharing this Ramin. I have never considered thematic ETFs before. Something to look into.
Glad it was helpful @christines5430
Thank you so much for this amazing video! A bit off-topic, but I wanted to ask: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
I also like the diversification that Thematic ETFs can bring to a portfolio
Better invest into the relevant INDUSTRIES to hedge against if this megatrend faulters while also benefitting from the upside. Instead of AI/Cybersecurity/Innovators go for Technology/Information Technology specifically. Decarbonisation = Clean energy. Why? Because most of the ETF for those sectors will have a big chunk of the same successful companies in them as the thematic ETFs and they will be correlated heavily. If the megatrend flops, the thematic ETF will go down massively, but the industry one will eventually rebalance out those failed companies.
Do you own any wisdom tree ETFs or products Ramin?
Hi @chrisbarlow5968 not at the moment but I have in the past. I played around with their S&P 500 3x levered fund and got lucky with my timing (bought April 27th 2021 sold on September 16th that year just before the Tech Wreck). Thanks, Ramin.
20% in L&G Global Tech - sorted.
I've got AI and Blockchain themes in my fun portfolio. So far, so good... But they'll only ever be in the fun portfolio based on my risk attitude and capacity... Owning the whole market as core makes better sense to me.
I bought a Hydrogen Economy etf a couple of years ago which is now 60% down. Got in waaay too early, which is a risk when you are trying to predict the future.
it should go up. but it might take lots of years
Made the exact same mistake.I got out of most my thematics ETFs by now (not that one yet though). I had a cybersecurity ETF, an Automation and Robotic, they both did ok but still underperformed Nasdaq-100 so what's the point.. And when you get it wrong the holdings in the ETF are so correlated that the drop is huge as you saw with the Hydrogen ETF, i also had that case with a Chinese Tech ETF in the past. So i would rather stay away from subsectoriels ETF
Hi @jont96686 I suppose that's why a multi-thematic fund is less concentrated in a single theme so less likely to fall out of favour so sharply. Thanks, Ramin.
I and very interested in tesla stock price predictions now. Not just the regulators likely to aprove soon self driving, but the Utube US videos I am watching with the teslas self driving from home to a destination oftern with no driver intervention. They have been promising self drive for years but all of a sudden now it feels only a year or two away maybe.
Hi @dan-jh4mz Tesla is a nice example of expensive quality stocks increasing further due to some catalyst, rather like the Nvidia example I used in the video where the catalyst was the launch of ChatGPT. Thanks, Ramin.
As a theme you would think water would be a sure thing Unless like any company they mismanaged things as in thames water etc
Best time to buy is after the crash that always seems to come. Eg the ' Green Themes ' , cannabis , space travel.
Very good, but no one knows when it will start and when the bottom is. You keep waiting for it watching the markets go up only to find it never gets down to todays' price at the bottom, which you would have missed anyway.
@torus186 You're right of course, but it seems like once the crowd jumps on , it's too late. A massive dip ensues creating a better entry similar to the original price before the spike.
Just buy Bitcoin. The theme is absolute scarcity in a world of excess. Bitcoin's game theory means there is a real first movers advantage to those that adopt it early. It doesn't matter if it is at the individual level, that of a corporation, or even a nation state. If you don't have a Bitcoin position at this stage, it means you haven't put in the work. You don't need to buy 1 BTC, the smallest unit that makes up 1 BTC is a Sat, and there are 100,000,000 Sats in 1 BTC. Start stacking as much as you can while it's still cheap. You can still buy 1000 Sats for less than US$1. Don't wait until 1 Sat = $1.
Dollar cost average into Bitcoin each week, hold it in self custody, and get on with enjoying your life. Two Bitcoin halving cycles later and the only regret you will have is that you didn't buy more.
Hello Teddy ! Pls give Romin some biltong
My thematic is clean water
Hi @davidjones4130 do you ever consider diversifying across multiple themes? Just in case the water theme doesn't work out... Thanks, Ramin.
@Pensioncraft yes , I also do tech via nasdaq etf . I consider 'clean water' to be a safe option as don't imagine that necessity will go away . Michael burry has conviction here as well I belive.
My idea is the risk on big tech is countered by water . Only a tiny piece of my portfolio. A solar position in a mainly all world allocation
Thanks!
Your Welcome @jackjanpour8532
Trouble is these themes can take years if not decades to make money. A lot of them will oulast investors tolerance.
Most of the AI ETFs I look at are as high-priced as their underlying holdings; also I hate META (Facebook) which pretty much shows up in all of them.
Hi @josepha9313 themes are often highly priced, but as I said in the video catalysts can come along (like the launch of ChatGPT for Nvidia or the election result for Tesla and Microstrategy) that can make expensive stocks even more expensive. That's the benefit of casting your net wide with a multi-thematic fund. I suppose you can create your own thematic basket which is infinitely flexible (and you can avoid Meta!) but that comes with the headache of rebalancing and monitoring trends and individual stock fundamentals. So it's always a tradeoff. Thanks, Ramin.
I diversify across themes by buying the S&P 500.
The best theme is Total US
Hi @george6977 I diversify across developed markets. People often use themes to tilt their portfolio i.e. you hold a thematic fund alongside global or developed equity (or the S&P 500) as I say about eight minutes into the video. Thanks Ramin.
Prefer vanguard, ishares..SPDR ....¡¡
Hi @nds9777 my core is a Vanguard fund. A thematic fund would probably be a "fun" portfolio allocation. Thanks, Ramin
GXTG is diverse so far
Horrible investing strategy. 👎
He really should have mentioned allocating a maximum of 10% of your portfolio to thematic ETFs (the "fun" portion of the portfolio).
Hi @RalphWu55 about eight minutes in I discuss this: "And the reason why you hold the thematic funds is to try and outperform the global index funds. Now that might work, it might not. But if you don't hold too large a percentage of your allocations in the thematic funds, it won't be a huge risk to your portfolio" i.e. this is probably for the "fun" portfolio. Thanks, Ramin.
(WMGG) ETF is too expensive 0.5% TER with a 0.57% spread. Just buy the Nasdac it will self adjust to suit trends as companies rise and fall.
Nasdaq*…I agree
hate wisdom tree
Why is that may I ask?