Investing properly or preserving a capital of 1,000,000 USD
Procreate/produce children and invest in their brains.
And so, countries of some kind, tools, why?
All deposits up to 700,000 are insured.
The amount is split and deposits are opened in different banks.
And so, countries of some kind, tools, why?
All deposits up to 700,000 are insured.
The amount is split and deposits are opened in different banks.
This option will lead to bankruptcy, it is only a matter of time. There are many examples. Why for example we cannot have a recently tested model like Cyprus, everything will be written off on state aid and 1 million euro will turn into zero.
That is why it is better to diversify into many assets and many countries.
I am inspired by the many conversations I have had with my friends on this subject. I will write down my view of the situation.
The main task and goal pursued is elementary preservation of capital, obtaining profitability is not the main goal.
The main mistake and the majority opinion - a bank deposit in several banks in one country that I think is wrong and leads to bankruptcy, it is a matter of time, examples are many (not a long example is Cyprus).
My approach is as follows,
Diversify funds into many assets (without any leverage) and many countries, namely (in % of capital):
1) A bank deposit in the country of residence (in RUB) (10%);
2) Investing in Russian equities (5%); (Nowadays, Russian equities are totally rubbish. Better to keep it under your pillow)
3) Investing in the most liquid securities of other countries (in local currency of these countries): USA, Great Britain, Germany, Singapore, Hong Kong, China, Australia. (50%); (Yeah, look at US stock gaps. You can run into +/- 50% value overnight. Good luck investing)
4) Investing in precious metals - gold, silver (30%); (Is it okay that gold is like 44% down from its 2011 high, and continues to fall safely?)
5) Cash currency - rubles, dollars, euros. (5%). (No growth factor. But there is a risk factor in the form of high volatility and political conjuncture. If the purpose of investing is to gain risk without reward, then it is a straight road to volatility investing).
Over time (periodically once every 3-6 months) move a small portion of one basket to another, thereby taking profitsin some assets and averaging outlosses in others, keeping in mind the maximum weighting in each asset group.
This diversification will help you keep your savings or some part of it at least, though you might be left without the last of your pants! But at least you are certainly protected from bankruptcy, because the most bankruptcy-proof person is a beggar!
How do you look at this situation? And what would you do? (see above)
Just one question -- if you have a million quid. What are you doing here?
I've tweaked a few things here, added my "vision" so to speak. Don't judge:
You are 100% pessimistic -)))
I can see from your edits that you've got the wrong idea.
You are 100% a pessimist -)))
I can tell from your edits that you're missing the point.
What is your understanding of the essence? Diversification for the sake of diversification?
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I am inspired by the many conversations I have had with my friends on this subject. I will write down my view of the situation.
The main task and goal pursued is elementary preservation of capital, obtaining profitability is not the main goal.
The main mistake and the majority opinion - a bank deposit in several banks in one country that I think is wrong and leads to bankruptcy, it is a matter of time, examples are many (not a long example is Cyprus).
My approach is as follows,
Diversify funds into multiple assets (without any leverage) and multiple countries, namely (in % of capital):
1) A bank deposit in the country of residence (in RUB) (10%);
2) Investing in Russian Federation blue chip stocks (5%);
3) Investing in the most liquid securities of other countries (in local currency of such countries): USA, Great Britain, Germany, Singapore, Hong Kong, China, Australia. (50%);
4) Investment in precious metals - gold, silver (30%);
5) Cash currency - roubles, dollars, euros. (5%).
Over time (periodically once every 3-6 months) move a small portion from one basket to another, thereby capturing profits in some assets and averaging out in others, keeping in mind the maximum weighting in each asset group.
This diversification will help you save your savings, or some portion of it! But at least you are certainly protected from bankruptcy!
How do you look at this situation? What would you do?