1Mon·

Adding China?

Hello everyone,

My portfolio is currently very US and tech-heavy, as you can easily see from my positions.

I mainly invest in large US tech stocks and the $CSPX (+0.72%) but I would like to increase my diversification somewhat.

I have therefore decided to reduce my savings plan by €100 per month (I will continue to save in the existing stocks) and invest this €100 specifically in 2-3 Chinese stocks.

My focus is on $9888 (+1.74%) and $9868 (-3.1%) each with €50 per month.

My aim is to reduce my US share somewhat. I personally don't see Europe as an attractive alternative, so I won't be investing in it. What do you think of this strategy? Do you think Baidu and XPeng are good additions or would you prefer other stocks?

Looking forward to your feedback!

21 Comments

1Mon

You have a portfolio full of tech and crypto. It's all pretty highly correlated and hardly diversified. Adding more tech doesn't really improve the risk profile, even if it is China.

•

Wiktor_06@Wiktor_06

1Mon

@Epi Thank you, do you have any other industries or Chinese companies that could help me?

••

Wiktor_06@Wiktor_06

1Mon

@Epi I'm thinking of adding WuXi Bio. and then BYD. But I'm unsure....
But just relying on tech is exactly what I don't want...

••

Epi@Epi

1Mon

@Wiktor_06 If you really want to diversify, take a look at gold mining stocks or natural gas stocks - they are historically cheap. Some are also rising nicely at the moment, e.g. $WPM.

••

Wiktor_06@Wiktor_06

1Mon

@Epi Dankeschön

•

Metis@Metis

1Mon

You can't just diversify by country, you also have to diversify by sector so that there really is diversification.

•

Wiktor_06@Wiktor_06

1Mon

@Metis thanks for the info

••

Andreas@Harley63

1Mon

I used to have a few Chinese stocks in my portfolio, including Baidu, Alibaba, Xiaomi etc. The problem is that the Chinese state is always "at the table" with these companies. And if it doesn't like something, such companies quickly fall out of favor. You always have to keep that in mind.

•

༺Yuichi༻@Yuichi

1Mon

A few consumer stocks would also be good for your portfolio $KO or $MDLZ or $MCDinsurance $ALV just a little gold $EWG2 then the portfolio wouldn't crash so rapidly either

•

Washing M.@TheFknMachine

1Mon

I only read the headline: YES, CHINA BEST. Look at my depot

••

Wiktor_06@Wiktor_06

1Mon

@Ji_hyun 😂😂

••

Caynify@Caynify

1Mon

ni hao

••

Saarastronaut@Watzeklicker

1Mon

For me, Europe and EM belong together. I would add Europe simply because of the exchange rate risk. And instead of China, I would take EM as a whole or Asia.

••

Epi@Epi

1Mon

@Watzeklicker EM and EU are not so different anymore in the last 10 years, correlation of over 0.85! 😅

••

Saarastronaut@Watzeklicker

1Mon

@Epi And that also contributes to diversification. If I had invested in the MSCI Europe over the last 5 years, I would have made around 110%. With EM it would have been around 50% and with the MSCI USA 140%. Over one year, EM would have been the best option. So things are quite different.

•

Epi@Epi

1Mon

@Watzeklicker It probably also depends on which EU and EM you look at. There are often significant differences in the compositions.
Overall, however, the equity market has tended to be divided into US and exUS over the last 15 years.

•

Saarastronaut@Watzeklicker

1Mon

@Epi However, that is true. If you take the Eurostoxx 50, for example, it has gained a good 140% in the last 5 years. Sometimes the good is not so far away

•

Sansebastian@Sansebastian

1Mon

I don't understand why you don't like Europe. There are some stocks that are doing well and are interesting

••

Cashflow I.@Cashflow_Investor

1Mon

I would not include individual stocks from China in my portfolio.
My advice: if you don't want to invest in Europe, which unfortunately I don't understand, then get the S&P 500 , Emerging market IMI

••

Michel V.@Noord26

1Mon

Why not an ETF composed out of everything but US stocks? Something like $EXUS ?

••

Joschi 💎.@ETF_Jesus

1Mon

I would simply suggest an ex us Etf, then you will get both your developed country and EM shares up a bit.

Ok nvm edit: I lied, the EM share will not go up. But of course you can also simply follow a $VWCE strategy, or even a $SPYI strategy. If you want to overweight US tech even more, add a $CSNDX or something like that

••