2022 has so far left a bad taste in the mouth of many investors; the best international funds are for the most part negative, not to mention ETFs heavily exposed on the Nasdaq such as those of ARK Invest.
For this reason, having a portfolio that is not overexposed on certain assets is of vital importance.
This is why short-term speculations, led by Alibaba at a loss in my portfolio, are balanced by macro ETFs, short-term treasury ETFs, gold and commodities ETFs (for obvious reasons with great performances from the end of 2021).
The importance of diversification.
That’s why, in the long run, apart from a few super solid companies like Apple and Amazon, I don’t believe in heavy allocation to sector ETFs. Simply because they will hardly beat the indexes.
My year, for now, is slightly positive and I am 70% cash, because you have to be ready to enter, always with micro size, diluted over time.
We are facing 3 bad scenarios: the increase in rates by the FED and the European central bank, to counteract very high inflation (also pumped by the increase in raw materials), the coronavirus in China, with 20,000 cases per day and a new lockdown that worries and last but not least, the war between Russia and Ukraine.
After a 10% reversal, the S&P 500 rebounded and then pulled back again. We have recently been accustomed to some pretty fast V shapes, perfect for those who have had the foresight to invest during the downturns and I really hope we can see new highs within this year.
Although, the similarities between 2022 and 2018 are starting to be evident.
DISCLAIMER: I am not a financial advisor nor a CPA . These posts, videos, and any other contents are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.