galeno
Commander
KISS & STC
Posts: 221
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Post by galeno on Dec 31, 2020 21:20:51 GMT
We started 2020 with 40% equities. The bear took us to 35%. On April 1st we over-rebalanced to 45% equities. Today we are at 55% equities. We want to be at 50%. Very soon.
The candidates for sale are:
1. WSML (Developed Global Small Caps): P/E = 16.3%. Up 65.8% from April 1st. 6.2% of port.
2. VDEM (EM): P/E = 14.9%. Up 50.5% from April 1st. 5.3% of port.
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Post by Chahta on Jan 1, 2021 14:43:40 GMT
I am not sure but you sure know how to pick them. These look like the place to be for foreign equities.
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galeno
Commander
KISS & STC
Posts: 221
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Post by galeno on Jan 1, 2021 15:44:59 GMT
As non-US investors we have limited choices for reasonably priced UCITS ETFs on the LSE (London Stock Exchange). At the start of 2020 our only equity ETF was VWRD (All World Equity ETF). When it went from 40% of port to 35% of port we picked the two ETFs with the lowest P/E. At the time it was WSML (Developed Global Small Caps) and VDEM (EM Equity). I see problems with both. If the stock market goes south this year I believe small caps will get hit harder than EM. Who knows? If we sell WSML we lose our small caps. OTOH the EM equity ETF has our portfolio a bit overweighed to China compared to VT (FTSE all world all cap equity index). Our slight preference is to sell the EM equity ETF. I am not sure but you sure know how to pick them. These look like the place to be for foreign equities.
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Post by Chahta on Jan 1, 2021 16:46:04 GMT
I’m not a huge fan of foreign equities. But those 2 ETFs look like they can be purchased in the US.
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galeno
Commander
KISS & STC
Posts: 221
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Post by galeno on Jan 7, 2021 13:05:19 GMT
After yesterday's insanity in the US Capital we decided to sell BOTH.
Better safe than sorry.
We just went from 56% equities to 44%.
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Post by chang on Jan 9, 2021 12:33:37 GMT
Last time I ran X-ray I was at 55%. Recently I decided I wanted to reduce that to 50%, and this week I sold off a LCG index in taxable to reduce equity by about 4%. But when I ran X-ray today, I found that I am at 57%.
I expect that many people are higher in equity than they think, if they don't actively rebalance. Now I need to consider selling more...
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Post by Chahta on Jan 9, 2021 13:16:40 GMT
Are you predicting a correction?
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Post by chang on Jan 9, 2021 13:27:08 GMT
Me? Absolutely not. I just want to prioritize capital preservation a little more, and growth a little less. Keeping what I have is critical. Taking significant risk of loss to grow bigger is unnecessary.
There is no perfect formula. Popular now is "own your age in bonds minus ten." Well, to reach that I would need to reduce equity by 5%. Again, nothing is set in stone, but I don't want to be caught out by any unpleasant surprises.
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Post by Chahta on Jan 9, 2021 13:31:05 GMT
After yesterday's insanity in the US Capital we decided to sell BOTH. Better safe than sorry. We just went from 56% equities to 44%. IMHO, it is not only in the capital. This country is close to a crisis if not already. That is the general feeling across the country. Monitoring FB, Twitter etc. you can see it. 1/2 the country is pretty pissed off. I could go off the political deep end but we don't do that here.
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Post by Chahta on Jan 9, 2021 13:39:39 GMT
Me? Absolutely not. I just want to prioritize capital preservation a little more, and growth a little less. Keeping what I have is critical. Taking significant risk of loss to grow bigger is unnecessary. There is no perfect formula. Popular now is "own your age in bonds minus ten." Well, to reach that I would need to reduce equity by 5%. Again, nothing is set in stone, but I don't want to be caught out by any unpleasant surprises. Then I should drop 8% to get to (68-10). That makes sense. I am at 50/50.
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