@Vik1337
Thank you very much! In fact, the high USA share is deliberately chosen by me for 3 reasons: - With few exceptions, the best companies in the world are in the USA (LVMH, ASML, TSMC or similar are exceptions) - The big companies from the USA are active worldwide. Microsoft, Google, Apple are used worldwide, as well as the products of Coca Cola or Procter & Gamble. Also McDonalds or Starbucks is visited worldwide, we pay with VISA and MasterCard,.... (I seem to remember that in the SP500 about 60% of the earnings come from the USA, the remaining 40% globally) - Because I live in Europe and am employed by a German company my salary depends on Germany / Europe. Likewise the pension, here I am also dependent on Germany. If I ever buy or build a house, it will be on German soil. In my eyes, all those who live in Germany are massively overweight in Europe. Therefore, I want to bring with USA share quite direction 80% to reduce my Europe share on the entire Leven related :)
Thank you very much! In fact, the high USA share is deliberately chosen by me for 3 reasons: - With few exceptions, the best companies in the world are in the USA (LVMH, ASML, TSMC or similar are exceptions) - The big companies from the USA are active worldwide. Microsoft, Google, Apple are used worldwide, as well as the products of Coca Cola or Procter & Gamble. Also McDonalds or Starbucks is visited worldwide, we pay with VISA and MasterCard,.... (I seem to remember that in the SP500 about 60% of the earnings come from the USA, the remaining 40% globally) - Because I live in Europe and am employed by a German company my salary depends on Germany / Europe. Likewise the pension, here I am also dependent on Germany. If I ever buy or build a house, it will be on German soil. In my eyes, all those who live in Germany are massively overweight in Europe. Therefore, I want to bring with USA share quite direction 80% to reduce my Europe share on the entire Leven related :)
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11Mo
@Mister_ultra Interesting idea with the overweighting of D and EMU for all those living in D. I haven't read or heard that before. But there is definitely something to it. Thanks for that!
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•@Epi Assuming you have a property in Germany with a value of ~0.5 million. In addition, the cash flow from the employment relationship (over 40 years, these are also 2-3 million) and the pension entitlements (probably also over 0.5 million at 2,500 EUR pension over 20 years) [inflation excluded] Then you are quickly at 4-5 million, which are directly or indirectly dependent on the development in Germany or Europe. Even with a portfolio of one million completely invested in the U.S., the overall U.S. share would then only be at 20-25%. Of course, you can not look at it 1 to 1 so, but for me the reason why I clearly overweight the U.S. :)
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•11Mo
@Mister_ultra In principle, German savers should definitely give these thoughts some thought, but I would also include the risk of each asset in the calculation. Pension entitlements are likely to be quite safe, at least nominally, similar to government bonds. You can also calculate the expected return of the pension (it is not that much, currently about 4%pa, I think). The real estate is not easy to value with the market value if you use it yourself, but as such it is quite safe. Possibly with the discounted cash flow of the saved rent until end of life? I think the return and risk from the employment is even more difficult to grasp. It is probably more like a large capital stock from which one constantly withdraws something until it is used up at retirement or transferred to pension plans. The question now would be how to correctly value this "life portfolio" and what conclusions can be drawn from it for the asset allocation and its risk profile of the reserves. Probably the answer depends on the planned retirement date and the individual savings rate, but I am not very familiar with that. I would still be interested to know!
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•@Epi Absolutely and very good points. Always a very helpful "discussion" with you! Probably one would also have to consider whether one credits 100% of the claims from the employment relationship or only the claims that one theoretically has from an occupational disability insurance or the state insurance. On the other hand, I do not calculate with my portfolio with a total loss, even if that can of course occur just as -> In fact, I have never calculated it in detail to support my argument (we are all overweighted in D) -> For my investment strategy, this rough estimate is enough for me that D is probably overall significantly overweighted to sleep very well with a U.S. share of 75-80% Maybe I make a separate contribution. Would be quite exciting how other opinions on this are.
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