4D·

💸 €10,000 cash - ready to strike

Today I dug deep into my savings box and put €10,000 aside. Not for vacations, not for the car - but for additional purchases.


Since I joined the company in April, shares such as $NVDA (-3.83%) and $AVGO (-3.24%) have already performed strongly - in some cases up over 70 %. Brilliant, but that's exactly why I'm not touching them at the moment. Buying at all-time highs? Not my style.


Nobody is currently expecting a major stock market earthquake, but anyone who knows history knows that September has often been the month of panic selling - and of the best entries.


The €10,000 is currently parked in the iShares € Ultrashort Bond ETF (ISIN: IE000RHY0R04) - delivers a return of around 3.3% p.a., is available daily and currently yields more than any overnight money.

28.07
iShares € Ultrashort Bond ETF logo
Bought x1825.02 at €5.48
€10,001.10
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13 Comments

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A small remark: buying at the ATH is a better strategy than waiting for a setback. This has been examined and proven umpteen times. Clearly and unequivocally. The old saying applies: "Time in the market beats timing the market." Always.
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@Charmin I have had 100% of this experience. The stocks that I bought at or close to the ATH (Alphabet, Ferrari, ...) are doing much better on average than stocks that I bought 30-40% below the high (Vodafone, Shell, Recordati...). I only have two stocks where the "buy the dip" has really worked so far and I didn't buy them "on instinct", but because the news situation and sentiment really didn't match.
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@DieEnte7 The reason is another: the hoped-for setback is not coming ...
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@Charmin I understand what you mean and I fully agree with you, especially when it comes to savings plans, which I always keep running. But my strategy so far has always been to hold cash on the sidelines and add larger amounts in bear markets or during corrections - not at the ATH. I don't buy during bull runs, but when everyone wants out - with crypto just as with equities. If you're fully invested, you can't buy more when opportunities arise. That's the point for me.
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But these are corporate bonds. Might be a bit riskier than $XEON
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@EazyRackz I tested a few including the Overnight ETF – this one in EUR always came out ahead. The Overnight ETF is still a solid choice though, especially if your broker or bank doesn’t pass on EZB rates properly
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@EazyRackz well even if in theory you might be right it is ultrashort.... Practically 0 risk
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@Bullnbear Yeah. I also compared them recently. I guess it’s a personal choice.
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@EazyRackz @Bullnbear What do you think about the $DXS1
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@Bidax British pound currency risk for parking money? Naaaa
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@Ironman2022 the chart has not shown any risk recently, only performance.
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@Bidax Yes, but who can guarantee that it will continue like this? Small stock market 1x1: Don't look in the rear-view mirror🤓
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@Ironman2022
So to summarize: The currency risk of $DXS1 would be too high for you. Thank you for your assessment.
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