Enrico (@RealGangster) on getquin

1Yr·

Servus getquin community, am currently considering whether I should reallocate part of my investments. The talk is about $UIQK (+1.05%) which is my biggest position at the moment.

At that time I was looking for an ETF that combines commodities and energy supply, I came across $UIQK (+1.05%) came across. My goal was to benefit from the returns that these markets yield, but this works there only price-wise. Therefore, I am evaluating whether I want to invest a part in $RWE (+0.92%) and $RIO (+2.35%) and profit from the generous dividends and also possible price increases. In addition, it is said that sector ETFs are not always the best choice, which is why individual stocks now seem more attractive to me.

Of course, I am aware of the increased risk that this would entail, but I have been particularly impressed @DerCheruskerFuerst with its company presentation of $RWE (+0.92%) confirmed my opinion. $RIO (+2.35%) Would be a nice dividend payer with a nice focus on mining.

I could even imagine almost completely liquidating my position of $UIQK (+1.05%) but I would rather see a reduction of up to 70%.

Now I ask you, what do you think of my reallocation plans?

3 Comments

Bass-T@BASS-T

1Yr

I don't want to interfere with your thoughts, but Rio Tinto is a hard cyclical company and among other things dependent on the China business with real estate. There are quite a few videos on YouTube about this problem: Skyscraper A with residential units is sold to investors and Chinese with urgent real estate needs before construction begins. When the shell of the building is finished, suddenly no further work is done. Why? The financing of these residential buildings works partly via pre-financing. In other words, you give the builder a contractual advance payment in advance. But the builder knows full well that he can simply build a new shell with your money and that of the others. In this way, entire landscapes of deserted skyscrapers are created in China. Where is the problem for Rio Tinto? The bubble has swollen a lot in the meantime and the interest on loans is becoming too expensive. As a result, more money is needed to build the shell. But the buyers can't pay more. So an unfavorable effect is set in motion: The procedure described above no longer works and less iron ore etc. is purchased. This reduces future sales. I recently uploaded a video on Rio Tinto's competitor Fortescue Metals. I go a little deeper into the numbers there: Fortescue Metals Group (FMG) stock with over 10% dividend yield? Hammer Dividend Analysis https://youtu.be/q1zwWAQqTIo Maybe it will help you gain some insight. Not investment advice. Not a solicitation to buy or sell financial products. Just my opinion.

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