Diversifying risks - page 2
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If you think about it. Gold, the euro and the rouble are all tied to the dollar. The dollar goes down everything else goes up. The dollar rises, everything else falls. Diversification is when your portfolio consists of instruments that do not correlate with each other or this correlation is insignificant. For example, equities in the energy sector and industrial equities plus equities from the banking sector plus government bonds and gold.
If you buy shares in VTB and Sberbank, it does not mean that you have diversified. But a portfolio of shares in Uber, Avtovaz and Gasprom is already diversified, because these companies are from different sectors of the economy - banks, the car industry and the energy sector.
If the american market falls, all american stocks fall.
All stocks in one country are correlated.
If the US market falls, all stocks fall.
:)
in roubles is not necessary. in dollars, euros and gold.
I once saw a calculation of what was more profitable to keep in the bank - rubles or dollars and euros for 10 years. Given that the interest on the currency is less than that on the roubles. And taking into account the entire USDRUB movement over that time.
It turned out that the ruble deposit was more profitable.
But this is a private situation - holding in a bank.
If you keep capital in equal portions in roubles, dollars, euros and gold - is that diversification?
You will never go bust in this way?
It is better to keep it in major currencies, USD, EUR, CAD, GBP, CHF, JPY, NZD, AUD.
But money always depreciates, so inflation will eat into savings anyway
I am not interested in googling now, I read it all a couple of years ago, but the gold you mention just can't be bought and buried at home in the garden - you keep it in the bank, you pay for storage, you keep it in bullion at home, then you pay the expertise and fees, so instead of diversifying and trying to escape inflation, you pay for storage
That sounds kind of doom-laden...
So I understand that he wants to save capital, not trade.
Yes, that's right.
It is better then to keep it in major currencies, USD, EUR, CAD, GBP, CHF, JPY, NZD, AUD.
But money is always depreciating, so inflation will eat away at savings anyway
What is the safest portfolio? What would it consist of? Surely someone has studied and published it. Here, to preserve capital even in an apocalypse
That sounds a bit doomed...
not doom, it's a perennial problem - protecting assets from inflation, there are many investment blogs on smartlab
And in addition, to fully understand this problem, it's easier to walk to the bank and sit at a manager's desk and listen to what banks offer, then do your own calculation at home. alas, banks are not only crooks, but professionals in investment, you can take their proposed investment portfolio as a base and expand or reduce it as you see fit.
What is the safest portfolio? What would it consist of? Surely someone has studied and published it. Here, in order to preserve capital even in an apocalypse
the safest would consist of AAA rated assets anyway, no other criteria. The country also has a credit rating, so if you take those currencies, it will be safe, but money always has inflation. The amount of money will not decrease, but the purchasing power will.
That is why it is better to create a portfolio of shares with AAA rating or bonds of AAA-rated countries in order to protect from inflation. If you have a lot of money, a portfolio of stocks and bonds.
It is also possible to buy shares and sell futures, but I don't know whether one has to pay for the leverage of futures or not. When the futures expire, the position will be closed and there will be some profit, not big, but the inflation will be covered.
As for the apocalypse)). Cash gold, silver, platinum, but having bought cash gold, they take it back much cheaper. That's why it's also an illiquid investment.