I started to build up my portfolio with EUR bond ETFs, until FED starts decreasing interest rates, because after that ECB will start decreasing theirs as well, and I would like to make benefit from the increase of bond prices. Until that it is giving me a steady 3-4% interest. If and when a recession really hits this year, I would wait for a good entry point to stocks again. I would first buy US stock ETFs, with currency unhedged, because USD would be relatively weaker due to the early rate cuts, after that I would focus on European individual stocks, which typically recovers slower, most probably on the financial sector. By the end, I would have all the money reallocated from my bond ETFs to Stocks. I don't have a clear asset allocation target either, as I expect 2024 to be a very volatile year, so it will definitely require a closer look at corporate financial results and economic data.
Hey thanks for sharing, really appreciate it. Which EUR bond ETFs do you invest in? For long I wanted to look into bond ETFs, never got around. I like how you have a proper plan for potential recession scenario. I think I need to think of something similar. It makes total sense.
@@sidestreams6078 I'm personally buying this one: IE00BZ163H91 (Vanguard EUR Eurozone Government Bond UCITS ETF Distributing). There is a corresponding counterpart with Accumulating policy as well. Since I'm only planning to park my money here for a short term (1-2 years), Distribution policy is fine with me. The latest Dividend is ca. 2,6% p.a. and this is growing further, because higher paying bonds are slowly replacing the old ones.
I started to build up my portfolio with EUR bond ETFs, until FED starts decreasing interest rates, because after that ECB will start decreasing theirs as well, and I would like to make benefit from the increase of bond prices. Until that it is giving me a steady 3-4% interest.
If and when a recession really hits this year, I would wait for a good entry point to stocks again. I would first buy US stock ETFs, with currency unhedged, because USD would be relatively weaker due to the early rate cuts, after that I would focus on European individual stocks, which typically recovers slower, most probably on the financial sector. By the end, I would have all the money reallocated from my bond ETFs to Stocks.
I don't have a clear asset allocation target either, as I expect 2024 to be a very volatile year, so it will definitely require a closer look at corporate financial results and economic data.
Hey thanks for sharing, really appreciate it.
Which EUR bond ETFs do you invest in? For long I wanted to look into bond ETFs, never got around.
I like how you have a proper plan for potential recession scenario. I think I need to think of something similar. It makes total sense.
@@sidestreams6078 I'm personally buying this one: IE00BZ163H91 (Vanguard EUR Eurozone Government Bond UCITS ETF Distributing). There is a corresponding counterpart with Accumulating policy as well. Since I'm only planning to park my money here for a short term (1-2 years), Distribution policy is fine with me. The latest Dividend is ca. 2,6% p.a. and this is growing further, because higher paying bonds are slowly replacing the old ones.
ok thanks for the tip, I'll check this out
I'd change the videdo title to "How to invest under EU communism"
lol! Why is that? :D