Search found 131 matches

by mikeguima
Fri Aug 07, 2020 7:54 am
Forum: Non-US Investing
Topic: TIPS for European Investors [Inflation Linked Bonds]
Replies: 12
Views: 1519

Re: TIPS for European Investors

Anybody? :happy I'll try then - mostly just a semi-educated opinion though. As just noted, outside of US, we call them inflation linked bonds. IMHO, Option 1 and 3 are perfectly sensible options as you are putting using your capital to obtain nominal+inflation linked returns Option 2) doesn't make ...
by mikeguima
Sun Aug 02, 2020 2:12 pm
Forum: Non-US Investing
Topic: TIPS for European Investors [Inflation Linked Bonds]
Replies: 12
Views: 1519

Re: TIPS for European Investors

Hi everyone, First and foremost, apologies for reopening an old thread, but I figured my question would fit here. I'm an European investor (from Portugal) and am considering adding TIPS to my 60/40 portfolio, at around 10-15%, replacing some of the nominal bonds holdings. However, I'm unsure as to w...
by mikeguima
Sun Apr 26, 2020 7:55 am
Forum: Investing - Theory, News & General
Topic: Stock index funds with <50-100 holdings
Replies: 10
Views: 621

Re: Stock index funds with <50-100 holdings

May I suggest “Large Cap”? Hare are some international large cap funds: https://www.etf.com/etf-daily-news/1066 ... -etfs.html I don't use such funds, but there are plenty of them. Example: OEF MGK Sorry, I forgot to mention I'm from Europe. I'm aware such funds exist for US investors, but unfortun...
by mikeguima
Sat Apr 25, 2020 4:43 pm
Forum: Investing - Theory, News & General
Topic: Stock index funds with <50-100 holdings
Replies: 10
Views: 621

Stock index funds with <50-100 holdings

Hi everyone, I've been using the MSCI World as the core of my stock allocation ever since I started investing some 4 years ago. However, something has always really bugged me: the index covers over 1600 stocks (the all world MSCI ACWI covers even more), which means the top stock is 2-3% of the index...
by mikeguima
Sun Dec 22, 2019 6:34 am
Forum: Investing - Theory, News & General
Topic: Hedged bond funds (e.g. AGGH) and expected returns
Replies: 5
Views: 475

Re: Hedged bond funds (e.g. AGGH) and expected returns

The expected return of hedged bonds is identical to the expected return of unhedged bonds plus the expected return of trading the currency forward contracts. The expected return of the currency futures contracts is equal to zero minus friction costs (trading commissions, spreads). When you hedge bo...
by mikeguima
Sat Dec 21, 2019 7:53 am
Forum: Investing - Theory, News & General
Topic: Hedged bond funds (e.g. AGGH) and expected returns
Replies: 5
Views: 475

Hedged bond funds (e.g. AGGH) and expected returns

Hi everyone, Hedged bond funds are a common suggestion for EUR based investors. In particular, the iShares Core Global Aggregate Bond UCITS ETF EUR Hedged (AGGH) is often mentioned as an alternative for EUR based investors looking for a bond portfolio that diversifies away from the Eurozone without ...
by mikeguima
Mon Dec 16, 2019 6:49 pm
Forum: Non-US Investing
Topic: First-time investor
Replies: 11
Views: 1086

Re: First-time investor

Hey folks, I'm starting my investing journey from Portugal. I'm 40 years old. Having read two of the books, a few posts and some reviews on justETF, I thought about creating the following portfolio: 60% on Amundi ETF MSCI World UCITS ETF DR or iShares MSCI World EUR Hedged UCITS ETF (Acc) 40% on Va...
by mikeguima
Sun Sep 08, 2019 6:14 am
Forum: Investing - Theory, News & General
Topic: Inflation likelihood and inflation protection
Replies: 29
Views: 2339

Inflation likelihood and inflation protection

Hi everyone, I recenlty read an article by Ray Dalio on his opinion on paradigm shifts (https://www.linkedin.com/pulse/paradigm-shifts-ray-dalio/), where he argues central banks will likely have to monetize government deficits in order to pay for large incoming liabilities (debt, pension health care...
by mikeguima
Sun Aug 25, 2019 4:16 am
Forum: Investing - Theory, News & General
Topic: Overweight China and Emerging Markets? (Ray Dalio)
Replies: 34
Views: 4555

Overweight China and Emerging Markets? (Ray Dalio)

Hello everyone, I was watching a YouTube video today of Ray Dalio expressing his opinions on China, its emergence and potential as an investment. The video is here, in case you're interested: https://www.bridgewater.com/china/ Long story short, he believes investing in China is a good strategy from ...
by mikeguima
Sun May 26, 2019 2:19 pm
Forum: Personal Investments
Topic: Allocation to individual stocks/bonds
Replies: 13
Views: 961

Re: Allocation to individual stocks/bonds

Sure. I like following and valuing companies. My investment strategy prior to going 100% passive was based on valuing companies (DCF style) and buying and selling depending on value vs price. I switched from 100% that to 100% indexing because I didn't want to allocate as much time to investment deci...
by mikeguima
Sun May 26, 2019 7:19 am
Forum: Personal Investments
Topic: Allocation to individual stocks/bonds
Replies: 13
Views: 961

Allocation to individual stocks/bonds

Hi everyone, I've been following an index fund/ETF only strategy for the last couple of years, but would like to start allocating a small part of my portfolio to individual picks I would like to make. For those of you who combine indexing with some individual active asset picking, how much of your p...
by mikeguima
Sat Feb 02, 2019 1:09 pm
Forum: Non-US Investing
Topic: Fund listing: LSE vs Xetra
Replies: 3
Views: 441

Re: Fund listing: LSE vs Xetra

... is it safe to go with the LSE for this fund, given Brexit? The answer here, as with pretty much everything to do with Brexit (grrr) is, Nobody knows anything for sure. What is the bid-offer spread on these two ETF facets? Trading charge comparison? Ease of currency exchange, if appropriate? To ...
by mikeguima
Sat Feb 02, 2019 7:33 am
Forum: Non-US Investing
Topic: Fund listing: LSE vs Xetra
Replies: 3
Views: 441

Fund listing: LSE vs Xetra

Hello everyone, I've decided to use the iShares Core Global Aggregate Bond UCITS ETF EUR Hedged (Acc) - IE00BDBRDM35 as my main bond fund, but I've noticed it's listed in two different exhanges: LSE under the ticker AGGH, and Xetra, under the ticker EUNA. The volume is larger for the former (60.000,...
by mikeguima
Tue Dec 04, 2018 6:10 pm
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Re: Portfolio advice

Thank you for the feedback. I personally believe the usual recommendations for people my age are too aggressive given my profile, for two main reasons: 1) I don't know what big ticket items I may need to purchase in the near future. In other words, if you ask me whether it's likely I'll need to reso...
by mikeguima
Sun Dec 02, 2018 12:46 pm
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Re: Portfolio advice

Portfolio update After a few months of additional research and thought, here's what my current target portfolio looks like: 60/40 riskier and less risky assets - down from 70/30, since I think 60/40 will be easier to handle in a downturn and should still provide reasonable returns over time 30% Wor...
by mikeguima
Sat Nov 03, 2018 6:53 am
Forum: Investing - Theory, News & General
Topic: Invest in home country? Financial and human capital diversification
Replies: 1
Views: 227

Invest in home country? Financial and human capital diversification

Hello everyone, I've noticed many investors (both within my circle of friends and family and in forums like this) tend to overweight their home country (home bias) when it comes to allocating savings to financial assets, and that has left me wondering: given that those same investors have their huma...
by mikeguima
Thu Sep 20, 2018 5:07 pm
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Re: Portfolio advice

No one? :(
by mikeguima
Mon Sep 17, 2018 3:04 pm
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Re: Portfolio advice

Could anyone else give an opinion? :happy
by mikeguima
Sat Sep 15, 2018 5:25 am
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Re: Portfolio advice

Thank you for the reply, bloom! Setting a fixed allocation to cash or simply holding whetever necessary for emergencies and holding everything else in other assets (effectively separating cash out of my "real" portfolio) is one question I've also had, but I see cash as a balancing portion ...
by mikeguima
Thu Sep 13, 2018 7:52 am
Forum: Personal Investments
Topic: How do we adopt CORE and Explore using 3 Asset class portfolios?
Replies: 4
Views: 490

Re: How do we adopt CORE and Explore using 3 Asset class portfolios?

Can you detail a little more what that Core & Explore is?
by mikeguima
Wed Sep 12, 2018 2:05 pm
Forum: Non-US Investing
Topic: Portfolio advice
Replies: 9
Views: 1288

Portfolio advice

Hello everyone! After a few years exclusively reading on investing, time has come for me to start building my own portfolio, now that I'm going to be able to contribute to it. I'm 23 years old and come from Europe. I still haven't settled on a portfolio that fully convinces me, but what I share belo...
by mikeguima
Thu Aug 30, 2018 4:59 am
Forum: Non-US Investing
Topic: Local vs foreign currency bonds
Replies: 4
Views: 515

Re: Local vs foreign currency bonds

Thank you for the reply, Valuethinker! I searched some of your posts and you do share some golden nuggets! Regarding Eurozone defaults, they don't need to be explicit. If any government does exit the Eurozone (I see this as highly likely eventually, unfortunately; the sooner, the better, though) I'm...
by mikeguima
Thu Aug 30, 2018 3:52 am
Forum: Non-US Investing
Topic: Local vs foreign currency bonds
Replies: 4
Views: 515

Re: Local vs foreign currency bonds

Anyone? :happy
by mikeguima
Tue Aug 28, 2018 4:47 pm
Forum: Non-US Investing
Topic: Local vs foreign currency bonds
Replies: 4
Views: 515

Local vs foreign currency bonds

Hi everyone! I'm currently building my portfolio and am trying to decide on my bond allocation. I'm based in a Eurozone country and I'm planning on allocating 10-15% to nominal government bonds and TIPS (each). However, I'm unsure as to whether I should buy Euro bonds only or include foreign bonds a...
by mikeguima
Sat Aug 25, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Investing in startups (equity crowdfunding)
Replies: 1
Views: 293

Investing in startups (equity crowdfunding)

Hi everyone! I was wondering whether if some of you have thought about allocating a % of your portfolio to startups through equity crowdfunding and what you think of it. Given that equity crowdfunding has gained traction and become more widespread and easily available in the US and Europe (mostly), ...
by mikeguima
Tue Dec 19, 2017 1:52 pm
Forum: Personal Investments
Topic: Index Funds, ETFs and Ownership
Replies: 7
Views: 839

Re: Index Funds, ETFs and Ownership

You're talking about physical vs synthetic sampling? Those with physical sampling directly own the securities, right? Might there be some disadvantage to synthetic when compared to physical?
by mikeguima
Tue Dec 19, 2017 9:35 am
Forum: Personal Investments
Topic: Index Funds, ETFs and Ownership
Replies: 7
Views: 839

Index Funds, ETFs and Ownership

Hi everyone! This question came to my mind and therefore I'd like to pose it to you: if i own an index fund, do I own the constituents myself (i.e am i a shareholder of all the constituents) or does the fund merely track their performance without any direct ownership? How about for an ETF? If not, d...
by mikeguima
Wed Nov 15, 2017 6:32 am
Forum: Non-US Investing
Topic: Dangers of a Broker
Replies: 7
Views: 1556

Re: Dangers of a Broker

Right. I'm in Europe (not in the Netherlands though) and I use DeGiro. It's much cheaper than any other broker in my country. Each broker holds the ETFs of their clients in a separate holding company so if they went bankrupt no-one could claim their assets. So yeah it would be a matter of transferri...
by mikeguima
Tue Nov 14, 2017 4:48 pm
Forum: Non-US Investing
Topic: Dangers of a Broker
Replies: 7
Views: 1556

Dangers of a Broker

Hi everyone! I'd like to ask you guys opinion on something. So, when choosing a broker to buy my ETFs, I had the choice of normal, more expensive brokers, and one discount broker, which is around 10x cheaper than the average "normal" broker. Given that they charge so little, I started wond...
by mikeguima
Fri Oct 13, 2017 4:11 am
Forum: Investing - Theory, News & General
Topic: Gold ETF
Replies: 35
Views: 6604

Re: Gold ETF

I have it in coin so there is a perpetual put option. Why a perpetual put option? Regarding buying the gold itself, I reckon that 1) from 0.4% to 3% it's a very big difference and 2) storage costs and inconveniences wouldn't be great. But I might very well buy a little physically and put the rest i...
by mikeguima
Wed Oct 11, 2017 4:35 am
Forum: Investing - Theory, News & General
Topic: Gold ETF
Replies: 35
Views: 6604

Re: Gold ETF

You'e all made excellent points! Than you for that. If you believe that it is just a fluctuating asset no different in kind from any other--silver, real estate, peer-to-peer lending contracts--but that you are convinced that you like the past, and what you see as the future fluctuations, than an ETF...
by mikeguima
Fri Oct 06, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: Gold ETF
Replies: 35
Views: 6604

Gold ETF

Hi everyone, After having finally decided that Gold as an asset does belong into my portfolio (took me a while to make this decision), I'm now considering how I can hold it. I was thinking of doing so through an ETF, but I have one question: does the ETF provider actually own the gold (so that my pa...
by mikeguima
Mon Jul 31, 2017 5:11 am
Forum: Investing - Theory, News & General
Topic: Risk Parity ("The Problem with the Traditional Approach to Asset Allocation") - Question
Replies: 3
Views: 940

Risk Parity ("The Problem with the Traditional Approach to Asset Allocation") - Question

Hey everyone, I was reading this article by Bridgewater (a very recommended reading, by the way: https://www.bridgewater.com/resources/risk-parity-is-about-balance.pdf) and I couldn't understand the graph labeled "Rolling 3-Year Returns (Without Risk Premium)". Below it it says: "Risi...
by mikeguima
Fri Jul 28, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: Broker and Short Selling
Replies: 13
Views: 1253

Re: Broker and Short Selling

Thanks for the reply!

For the record, I live in Europe and my broker is Dutch, so I don't know if that SPIC applies. And they're an execution only broker. From my understanding, Lehman did a lot more than simple execution.

But I'm glad to hear it's safe! :D
by mikeguima
Fri Jul 28, 2017 10:16 am
Forum: Investing - Theory, News & General
Topic: Broker and Short Selling
Replies: 13
Views: 1253

Broker and Short Selling

Hey everyone! My broker's default account entails that short selling with my assets is allowed by other investors. The broker says that if the short seller is missing deposits (margin, I presume), the position will be closed and that whenever I want to sell my assets the broker will take the other p...
by mikeguima
Fri Jul 28, 2017 5:59 am
Forum: Personal Finance (Not Investing)
Topic: Savings rate: gross or net?
Replies: 68
Views: 12429

Savings rate: gross or net?

Hey everyone! I posted this in the other thread about each one's personall savings rate but since it was a relatively different subject, I'll (re)post the question here: " Save 10% and you'll be fine Save 20% and you'll thrive Save 30% and you'll be wealthy Sounds awesome! :D One major doubt I ...
by mikeguima
Thu Jul 27, 2017 5:29 am
Forum: Personal Finance (Not Investing)
Topic: What's your personal savings rate?
Replies: 135
Views: 16702

Re: What's your personal savings rate?

Save 10% and you'll be fine Save 20% and you'll thrive Save 30% and you'll be wealthy Sounds awesome! :D One major doubt I have is if most recommended savings rate are in function of gross income or after-tax income. In the Bogleheads book it has an example of at least 10% of take-home pay (which I...
by mikeguima
Wed Jul 19, 2017 10:55 am
Forum: Investing - Theory, News & General
Topic: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)
Replies: 39
Views: 5927

Re: Stocks, Bonds, and "Real Assets" (TIPS, REITs, Commodities)

Sorry for digging an old topic, but I've been looking into this issue (relevance of real assets) for some time and reached the (personal) conclusion that yes, real assets should be considered in addition to stocks, bonds and cash as a 4th asset class that should be in any good diversified portfolio....
by mikeguima
Sat Jul 15, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: The Modified (Golden) Butterfly
Replies: 15
Views: 7283

Re: The Modified (Golden) Butterfly

I am not a fan of long term bonds. I want stability from the bond side, but LT bonds can fluctuate dramatically depending on interest rates. I also do not think the 10% TIPS is enough to truly protect you from inflation, if that is a concern. Consider something like: 20% TIPS 30% Intermediate Bond ...
by mikeguima
Sat Jul 15, 2017 6:28 am
Forum: Investing - Theory, News & General
Topic: The Modified (Golden) Butterfly
Replies: 15
Views: 7283

The Modified (Golden) Butterfly

Hello everyone, I came across Tyler's excellent website a year ago and could not help to be drawn to the pratical representations of asset and portfolio performance he offers there. Naturally, while browsing his website, I came across his Golden Butterfly portfolio and was instantly sold, more so by...
by mikeguima
Sat Jul 15, 2017 3:57 am
Forum: Investing - Theory, News & General
Topic: 50% Cash, 50% Stocks: The Opportunistic Portfolio
Replies: 43
Views: 7491

Re: 50% Cash, 50% Stocks: The Opportunistic Portfolio

Thanks for the replies, guys! Regarding cash vs bonds, it's somewhat irrelevant to what I proposed. It could be bonds instead of cash, the point was using a safer asset in times of crisis to finance the purchase of a riskier asset in the market bottom. Regarding that, do you guys know of any study t...
by mikeguima
Thu Jul 13, 2017 2:28 pm
Forum: Investing - Theory, News & General
Topic: 50% Cash, 50% Stocks: The Opportunistic Portfolio
Replies: 43
Views: 7491

50% Cash, 50% Stocks: The Opportunistic Portfolio

Hey fellow Bogleheads! In the process of studying risk manegement and the importance of financial flexibility, namely cash holdings for opportunistic investments and cushion in volatile sectors, it ocurred to me the idea to use the same concept in investing. The first idea that came to my mind was r...
by mikeguima
Tue Jul 11, 2017 5:08 am
Forum: Investing - Theory, News & General
Topic: Economic Conditions: How Often do They Happen?
Replies: 5
Views: 1233

Re: Economic Contitions: How Often do They Happen?

Inspired by your graphs, I did a little manual research and this is what I gathered for some of the most important economies: Duration of Economic Conditions Prosperity vs Recession (US) 70% 1926- Prosperity vs Recession (Germany) 75% 1970- Prosperity vs Recession (France) 90% 1949- Prosperity vs Re...
by mikeguima
Mon Jul 10, 2017 5:15 pm
Forum: Investing - Theory, News & General
Topic: Economic Conditions: How Often do They Happen?
Replies: 5
Views: 1233

Economic Conditions: How Often do They Happen?

Hello everyone! I've been enthusiastically reading about how different assets perform under different conditions, inspired by Ray Dalio's All Weather approach as well as the Permanent Portfolio, both of which propose that a good portfolio should be one that performs relatively well in all economic c...
by mikeguima
Wed Jul 05, 2017 3:28 pm
Forum: Investing - Theory, News & General
Topic: Real Estate: Direct vs Indirect Investment
Replies: 92
Views: 11625

Re: Real Estate: Direct vs Indirect Investment

First, I'd recommend checking out from the library a copy of David Swensen's, Unconventional Success, and turning to Chapter 2 page 66 and reading the section of real estate. [...] Admittedly extremely stale data... One challenge with most (all?) popular investing books is they don't tie back to fa...
by mikeguima
Mon Jul 03, 2017 8:22 am
Forum: Investing - Theory, News & General
Topic: What happens if the fund provider goes bankrupt?
Replies: 12
Views: 4982

Re: What happens if the fund provider goes bankrupt?

By the way, individual mutual funds get terminated all the time, and since the usual reason is that they aren't making money for the fund company, that's somewhat like going bankrupt. It's a minor nuisance for the fund shareholder, because by far the most common result is that the fund is merged in...
by mikeguima
Sun Jul 02, 2017 2:26 pm
Forum: Investing - Theory, News & General
Topic: What happens if the fund provider goes bankrupt?
Replies: 12
Views: 4982

Re: What happens if the fund provider goes bankrupt?

So, to make things clearer: if I buy an ETF through a broker and it goes bust, I still own the ETF and it only has to be transfered to another broker; if the company to which the ETF belongs to (Vanguard, Blackrock,...) goes bust, I still own the assets in the fund and so those assets just have to b...
by mikeguima
Sun Jul 02, 2017 7:58 am
Forum: Investing - Theory, News & General
Topic: What happens if the fund provider goes bankrupt?
Replies: 12
Views: 4982

What happens if the fund provider goes bankrupt?

Hello everyone, So, lately I've been trying to get a better idea of the safety of my investments and the probability of losing them. I invest in ETFs through a broker and, as far as I could understand until now, if the broker goes bankrupt, my investments are safe because they're still in my posessi...
by mikeguima
Fri Jun 30, 2017 4:31 pm
Forum: Investing - Theory, News & General
Topic: One fund, the whole stock market, why not?
Replies: 15
Views: 2235

Re: One fund, the whole stock market, why not?

United States. If someone can point me to a total world bond fund (USD hedged for the international portion) or a total world real estate (REIT) ETF, I'm interested -- assuming the expense ratios and bid/ask spreads are reasonable. My preference for ETFs is due to potential future changes, I don''t...