2Mon·

💸 €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 (+2.31%) and $AVGO (+1.78%) 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

Bought x1825.02 at €5.48

€10,001.10

14 Comments

Charmin@Charmin

2Mon

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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DieEnte7@DieEnte7

2Mon

@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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Charmin@Charmin

2Mon

@DieEnte7 The reason is another: the hoped-for setback is not coming ...

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TheCashConcierge@TheCashConcierge

2Mon

@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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Darth Vader@TheRealDarthVader

2Mon

@Charmin Basically correct, but I have to disagree with Bitcoin. Lump sum beats DCA, but it's not worth waiting for the dip or the crash at every point!

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EazyRackz@EazyRackz

2Mon

But these are corporate bonds. Might be a bit riskier than $XEON

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TheCashConcierge@TheCashConcierge

2Mon

@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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Simone B.@TheRealSimone

2Mon

@EazyRackz well even if in theory you might be right it is ultrashort.... Practically 0 risk

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EazyRackz@EazyRackz

2Mon

@Bullnbear Yeah. I also compared them recently. I guess it’s a personal choice.

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