10Lun
Good plan, and you seem to know where you wanna go, which is already a good start!
I will not dare to comment on the stocks pick side because I have no added value there, it simply is not something I am doing.
Though regarding the healthcare sector, you are aware that $NOVO B is already a top position in your $WHCS right?
I understand that you are ok overweighting on the US, is there a reason why you don't take a World ETF?
They are also quite heavy on US and give you broad exposure to many other markets, which is good in my opinion.
I understand that you have a long-term horizon of investment, and you will want cash flow at some point, maybe you could add a position of bond ETF, distributing for example, so you get exposure to the bond market and get regular dividends.
It could be at first as little as 5% and later as you approach retirement slowly increase it to have more income, just an idea.
I will not dare to comment on the stocks pick side because I have no added value there, it simply is not something I am doing.
Though regarding the healthcare sector, you are aware that $NOVO B is already a top position in your $WHCS right?
I understand that you are ok overweighting on the US, is there a reason why you don't take a World ETF?
They are also quite heavy on US and give you broad exposure to many other markets, which is good in my opinion.
I understand that you have a long-term horizon of investment, and you will want cash flow at some point, maybe you could add a position of bond ETF, distributing for example, so you get exposure to the bond market and get regular dividends.
It could be at first as little as 5% and later as you approach retirement slowly increase it to have more income, just an idea.
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@RaphGM hi! Thanks for your feedback, I’ll try to answer to your questions:)
I am aware of the allocation of NOVO in WHCS, it’s intended as I won’t be expanding NOVO’s position any time soon (except maybe for a big dip) due to this. I’ll try to add another medical stock or two in the near future, like $GILD or $MRK , that are not as weighty in the etf already and cover entirely different sectors in medical in respect to $NOVO B.
I decided against a world etf for a simple reason: comparing max performances against etfs of world, s&p500, stoxx50, Nikkei , ems showed me that world index is dragged down in long time performance by Europe and Ems
So I opted for us, Japan and to cover eu with select choice of stocks, which I’m still working on because I’m struggling to find solid stocks that fit my current sector allocations and my strategy
To be honest, I still don’t quite understand the bond market, so I steered clear of it, as I don’t like putting money in things that I don’t understand fully. On paper it’s sound strategy, what would be your suggestions in the bond sector?
Thank you very much
I am aware of the allocation of NOVO in WHCS, it’s intended as I won’t be expanding NOVO’s position any time soon (except maybe for a big dip) due to this. I’ll try to add another medical stock or two in the near future, like $GILD or $MRK , that are not as weighty in the etf already and cover entirely different sectors in medical in respect to $NOVO B.
I decided against a world etf for a simple reason: comparing max performances against etfs of world, s&p500, stoxx50, Nikkei , ems showed me that world index is dragged down in long time performance by Europe and Ems
So I opted for us, Japan and to cover eu with select choice of stocks, which I’m still working on because I’m struggling to find solid stocks that fit my current sector allocations and my strategy
To be honest, I still don’t quite understand the bond market, so I steered clear of it, as I don’t like putting money in things that I don’t understand fully. On paper it’s sound strategy, what would be your suggestions in the bond sector?
Thank you very much
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10Lun
@deodorhunter for bonds, you could probably start by looking at something in the euro zone and maybe state bond (safer but lower yield), or corporate (riskier but higher yield).
US treasuries bond could be also a start.
Then you can look at the maturity risk of the bond, the longer term the bond maturity, the higher the risk (of interest change over the period for example), but also the higher the yield.
For bond I recommend taking an ETF because then you get a package of bond at once.
I decided to include a bit of all kind of bonds in my portfolio, to have something that is more diversified, but still keeping the overall bond ratio at about 5%. Now it is a bit higher and I will have to adjust it.
US treasuries bond could be also a start.
Then you can look at the maturity risk of the bond, the longer term the bond maturity, the higher the risk (of interest change over the period for example), but also the higher the yield.
For bond I recommend taking an ETF because then you get a package of bond at once.
I decided to include a bit of all kind of bonds in my portfolio, to have something that is more diversified, but still keeping the overall bond ratio at about 5%. Now it is a bit higher and I will have to adjust it.
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•@RaphGM thank you very much, I’ll look into it, I have a feeling I would only look at treasury/states and not corporate. One question tho, as I mentioned earlier I don’t understand the topic very well still. Considering incoming rate cuts for the year, how would they affect bonds yields and performance of said etfs? Would value be reduced going into a lower rate scenario if for example I add them before the cuts?
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