ETFS suggestion(maybe market correction)

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gamblehappier
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ETFS suggestion(maybe market correction)
« on: May 04, 2020, 11:20:36 PM »
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Here is a list of some main ETFS which they seem to increase in the long run.
I want to hear some suggestions.Which do you add to the list?Again the purpose is to buy all of them and not only 1 or 2.Actually split the capital to the below ETFS

1)SPY
2)VOO
3)QQQ
4)IVV
5)VTV
6)SCHD
7)USMV
8)VOO
9)IWF
10)AGG
11)GLD
12)VTI
13)VUG


So this is my suggestion list.Again it is not an investment advice.It is a list of etfs that is stable and their stock diagram only increase as the time passes.And they increase a lot.Check google.

Below is another list with some popular etfs which are almost stable(but their diagram not increase)
VEA,VWO,LQD,EEM,IEMG,VIG,IJR,IJH,IWM

Again i speak for long term investment and not short-term.Also i suggest the stock prices of the aboves etfs not the cfds prices(as i know the cfd etfs are good for trading,not for long hold buyers).




« Last Edit: May 05, 2020, 01:02:32 AM by gamblehappier » Logged

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Re: ETFS suggestion(maybe market correction)
« Reply #1 on: May 05, 2020, 06:43:07 AM »
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You keep saying long term they go up but Japan stock market Index, the Nikkei, has gone down since 1990 and that's before you factor in this new down swing due to corona virus. Be careful out there the stock market is all fixed and many stock exchanges are currently artificially high due to huge stimulus from governments.
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Re: ETFS suggestion(maybe market correction)
« Reply #2 on: May 05, 2020, 10:11:20 AM »
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@gambliehappier

In order to invest in long-term on ETFs you must understand how they work and if you are ok with their methodology then go for it. Also you need to check who are the main buyers and sellers, in order to understand why they go always up. Most of these ETFs are being bought by American retails which have the investment mindset in their blood. As you can see the same has not worked for Japanese ETFs(which target Japanese retails mainly) and European ETFs (which target European retails),because their mindset/education is much more conservative. I am not saying that it is not a good long term investment, i am saying that their values increases for reasons that maybe are not the ones that you thing they are. Most of the ETFs of your list are the most popular,because of that most retails uses them, which attracts traders, which attracts institutionals. Because of that the prices go up. So, what will happen in those ETFs when the baby boomers( biggest generation in the world who own most of them) start to retire? Probably will create huge selling pressure(because they want cash in order to live), which creates selling pressure from traders, which creates selling pressure from institutionals. So, as you can  see in ETFs there are forces that has nothing to do with fundamentals P/E, earnings etc. I just wanted to warn you and not prevent you because, i was ready to start playing that game but after that, i changed my mind.  ETFs buy all the stocks in their basket when someone buys the ETF, it doesn't care if the price of stock Χ has P/E of 1000 or Free Cash Flow yield of 0.0001% it will buy it. The reverse goes when someone sells the ETF. Also a huge no go is the leveraged ETFs , the way they are structured will destroy your money.
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Re: ETFS suggestion(maybe market correction)
« Reply #3 on: May 05, 2020, 11:39:33 AM »
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Buying ETF's strongly depends on the country you live in and your personal circumstances as well as the total time you want to hold the investment.  The main reason you buy an ETF is, you want to avoid exposure to 1 single stock and therefore buy an ETF so you have a large number of stocks in your portfolio automatically without being subject to individual stock crashes.

If you are looking long term (10+ years), it's best to simply buy a broad market exposure ETF that follows 1 of the main indexes like the S&P 500 or one that has exposure to US stocks, developing markets and European markets as well. Also, look for one that has a very low annual cost (like below 0.1%/year).  This should give you the lowest risk compared to the lowest cost and it would be very unlikely you lose money that way.

Depending on the country you live in and whether or not you are taxed on dividends, you would have to choose between an ETF that distributes the dividends (so you get the dividends from all the companies that ETF invests in) or one that accumulates.  Accumulating ETF's automatically reïnvest all received dividends so you are not taxed on it, instead the value of the ETF goes up when dividends are distributed.  If you buy ETF's based in Ireland or Luxembourg, the dividend accumulation is not taxed.  In other countries, it's taxed at the source.

You should also have a balanced portfolio, depending on your age.  If you are young, that means under 40 and have a long time to go till retirement, it's generally best to have as much invested in stock as possible.  This however can cause bigger swings.  If you are less risk averse, you should get some ETF's that invest only in bonds as well.  Generally, when stocks go up, bonds remain flat but when stocks go down bonds go up so having 10-20% of your portfolio in bond ETF's will cause less violent swings and offsets some of the market drops.

The stock market, long term, always goes up.  This is inherent in our sociëty.  Capitalism is based on growth.  When there is no more growth, eventually everything will collapse together with our financial system.  You do not want that to happen as life as we know it would end, savings would be wiped out and currencies would have collapsed.  Having gold or silver will not help you in this case, having some land, seeds and probably weapons would.  Do not believe doomsday thinkers, the financial system is very robust and there are many checks and balances to avoid a total crash of the system.

Gold or silver are not great investements, they hold value but rarely increase more than the inflation does long term so it's something you can hold in your portfolio to offset drops and decrease swings, but it should not be a large proportion of your portfolio.

The best way to invest long term into the stock market is to buy small amounts of certain ETF's every month.  You should not care whether or not the market is up or down at the time. If you had bought 10 000€ of a broad ETF at the height of the dot-com bubble in 2001, 15 years later you would still almost have doubled your money if you had reïnvested the dividends.  10 years later you would have been 40% in profit.  That is with 2 big crashes (2002 and 2008).  If you had invested 100€ every month for 100 months, starting in 2001 at the height of the bubble, you would have had 20 000 in 2011, only 10 years after starting and only 1.5 years after having invested your last 100€.

The best advice: Time in the market is more important than market timing. So holding ETF's longer is better than trying to time the market lows and only buying then.

Some ETF's I can suggest, all with very low annual costs and accumulating dividends:

IE00B5BMR087: follows the S&P500, 0.07% annual cost.  Reïnvests dividends.
IE00BYX8XD24: same ETF, slightly higher costs at 0.25% annual but with less volatility as it's weighed toward the low volatility index.
IE00B4L5Y983: tracks 23 indexes from developed countries worldwide, 0.2% annual cost. Reïnvests dividends.
LU1287023268: European bond etf (goverment bonds over 15 years), 0.17% annual cost. Reïnvests payouts.

I personnally buy an amount of these every month and do 50% IE00B5BMR087, 35% IE00B4L5Y983 and 15% LU1287023268.

« Last Edit: May 05, 2020, 12:02:20 PM by Alfa1234 » Logged
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Re: ETFS suggestion(maybe market correction)
« Reply #4 on: May 06, 2020, 01:17:35 PM »
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You keep saying long term they go up but Japan stock market Index, the Nikkei, has gone down since 1990 and that's before you factor in this new down swing due to corona virus. Be careful out there the stock market is all fixed and many stock exchanges are currently artificially high due to huge stimulus from governments.

For this reason i said above diversification.But again in your example the Japan stock market,Nikkei,looks stable(maybe decrease a little lets say that you bought at 1990).I said etfs because you buy a lot of variety of stock and not individual,in order to avoid losing capital if your stock bankrupt.
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Re: ETFS suggestion(maybe market correction)
« Reply #5 on: May 06, 2020, 01:42:33 PM »
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@gambliehappier

In order to invest in long-term on ETFs you must understand how they work and if you are ok with their methodology then go for it. Also you need to check who are the main buyers and sellers, in order to understand why they go always up. Most of these ETFs are being bought by American retails which have the investment mindset in their blood. As you can see the same has not worked for Japanese ETFs(which target Japanese retails mainly) and European ETFs (which target European retails),because their mindset/education is much more conservative. I am not saying that it is not a good long term investment, i am saying that their values increases for reasons that maybe are not the ones that you thing they are. Most of the ETFs of your list are the most popular,because of that most retails uses them, which attracts traders, which attracts institutionals. Because of that the prices go up. So, what will happen in those ETFs when the baby boomers( biggest generation in the world who own most of them) start to retire? Probably will create huge selling pressure(because they want cash in order to live), which creates selling pressure from traders, which creates selling pressure from institutionals. So, as you can  see in ETFs there are forces that has nothing to do with fundamentals P/E, earnings etc. I just wanted to warn you and not prevent you because, i was ready to start playing that game but after that, i changed my mind.  ETFs buy all the stocks in their basket when someone buys the ETF, it doesn't care if the price of stock Χ has P/E of 1000 or Free Cash Flow yield of 0.0001% it will buy it. The reverse goes when someone sells the ETF. Also a huge no go is the leveraged ETFs , the way they are structured will destroy your money.

Thanks for asnwering Ilovethisforum.I understand what you say and i think that you also believe that is a good long term investment.Again as you said the key is diversification and know what you buy.
For example  Spy tracks Sp500 and QQQ tracks Nasdaq 100( The NASDAQ-100 (^NDX) is a stock market index made up of 103 equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock market. It is a modified capitalization-weighted index).

If someone thinks that top 100 Nasdaq companies will go bankrupt in the long run should be crazy.

Maybe Amazon go bankrupt,maybe Apple,Facebook but not all of these companies.If someone thinks that all the above top companies will go bankrupt i think he lives in another world(except we face a global war).

Even nowadays,due to covid 19,we see that all stocks of top companies decrease for a very short time and then go up again.Even a super pandemic like covid-19,cannot damage these companies.This is an example that if you bought etfs that tracks Nasdaq,Spy, and in general a list of top companies(not only tech,go to other fields-diversification),the stock price will increase in the longrun.

Most Etfs have the same line as Nasdaq,Spy,DownJones etc..So if the line of Nasdaq,Spy,DownJones decrease,also the etfs will decrease.Actually is like buying the above but without have to spend so much capital.

For example SPX500 costs 2865$.You can buy Spy at 286 $.It is exactly the same but you spend less capital and have the same line.

I stay away from leverages etfs as you said,i do not want to pay extra fees.

Ilovethisforum thanks for answering again.Do you have etfs to suggest?

Also i add to the above list NYSEARCA: DIA which has the exact same line with Down Jones Index.




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Re: ETFS suggestion(maybe market correction)
« Reply #6 on: May 06, 2020, 01:47:39 PM »
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If the price remains stable from 1990 to 2020, in real terms you're losing a hell of a lot due to inflation. I am no expert on stocks and shares but for me now doesn't seem like the time to be buying. There is potential huge downswings possible and an upwards trend will only happen if and when a safe and effective vaccine for Corona Virus is found.
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Re: ETFS suggestion(maybe market correction)
« Reply #7 on: May 06, 2020, 02:39:53 PM »
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If the price remains stable from 1990 to 2020, in real terms you're losing a hell of a lot due to inflation. I am no expert on stocks and shares but for me now doesn't seem like the time to be buying. There is potential huge downswings possible and an upwards trend will only happen if and when a safe and effective vaccine for Corona Virus is found.

Yes you right,if a market stays stable for 25 years,you lose money due to inflation.You are very correct to this.
Personally i think that it is worth to buy and hold for long term some top stocks and some popular etfs. Again buy and hold longterm.
Also due to covid-19 there were a lot of trading opportunities(Oil for example).
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Re: ETFS suggestion(maybe market correction)
« Reply #8 on: May 06, 2020, 04:44:37 PM »
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If the price remains stable from 1990 to 2020, in real terms you're losing a hell of a lot due to inflation. I am no expert on stocks and shares but for me now doesn't seem like the time to be buying. There is potential huge downswings possible and an upwards trend will only happen if and when a safe and effective vaccine for Corona Virus is found.

Yes you right,if a market stays stable for 25 years,you lose money due to inflation.You are very correct to this.
Personally i think that it is worth to buy and hold for long term some top stocks and some popular etfs. Again buy and hold longterm.
Also due to covid-19 there were a lot of trading opportunities(Oil for example).

In "the lost decade" the price was "stable" or lower than the peak for 10 years (2001 untill it finally reached the same level in 2011).  As I said above, if you had invested 10k in an ETF following the S&P 500 at the height of the value of 2001, you would still have made 40% profit after inflation in 2011 because of dividends received.  If you had invested 10k in total, with 100 euro increments every month, you would have 20k by 2011, still a very nice 80% profit if you take inflation into account.

If you buy a large sum at any given point and hold it over 20 years, you will always make a profit.  If you buy in small increments and hold, you will make profit after a much shorter period.  This is mathematics and a well accepted way of investing in the world.  Again: time in the market is much more important than market timing.  Buy small amounts every month and you will make profit.  If you don't after 10+ years, it won't matter anyway as the system will have crashed and your money has no value anyway.
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Re: ETFS suggestion(maybe market correction)
« Reply #9 on: May 07, 2020, 01:56:21 AM »
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Buying ETF's strongly depends on the country you live in and your personal circumstances as well as the total time you want to hold the investment.  The main reason you buy an ETF is, you want to avoid exposure to 1 single stock and therefore buy an ETF so you have a large number of stocks in your portfolio automatically without being subject to individual stock crashes.

If you are looking long term (10+ years), it's best to simply buy a broad market exposure ETF that follows 1 of the main indexes like the S&P 500 or one that has exposure to US stocks, developing markets and European markets as well. Also, look for one that has a very low annual cost (like below 0.1%/year).  This should give you the lowest risk compared to the lowest cost and it would be very unlikely you lose money that way.

Depending on the country you live in and whether or not you are taxed on dividends, you would have to choose between an ETF that distributes the dividends (so you get the dividends from all the companies that ETF invests in) or one that accumulates.  Accumulating ETF's automatically reïnvest all received dividends so you are not taxed on it, instead the value of the ETF goes up when dividends are distributed.  If you buy ETF's based in Ireland or Luxembourg, the dividend accumulation is not taxed.  In other countries, it's taxed at the source.

You should also have a balanced portfolio, depending on your age.  If you are young, that means under 40 and have a long time to go till retirement, it's generally best to have as much invested in stock as possible.  This however can cause bigger swings.  If you are less risk averse, you should get some ETF's that invest only in bonds as well.  Generally, when stocks go up, bonds remain flat but when stocks go down bonds go up so having 10-20% of your portfolio in bond ETF's will cause less violent swings and offsets some of the market drops.

The stock market, long term, always goes up.  This is inherent in our sociëty.  Capitalism is based on growth.  When there is no more growth, eventually everything will collapse together with our financial system.  You do not want that to happen as life as we know it would end, savings would be wiped out and currencies would have collapsed.  Having gold or silver will not help you in this case, having some land, seeds and probably weapons would.  Do not believe doomsday thinkers, the financial system is very robust and there are many checks and balances to avoid a total crash of the system.

Gold or silver are not great investements, they hold value but rarely increase more than the inflation does long term so it's something you can hold in your portfolio to offset drops and decrease swings, but it should not be a large proportion of your portfolio.

The best way to invest long term into the stock market is to buy small amounts of certain ETF's every month.  You should not care whether or not the market is up or down at the time. If you had bought 10 000€ of a broad ETF at the height of the dot-com bubble in 2001, 15 years later you would still almost have doubled your money if you had reïnvested the dividends.  10 years later you would have been 40% in profit.  That is with 2 big crashes (2002 and 2008).  If you had invested 100€ every month for 100 months, starting in 2001 at the height of the bubble, you would have had 20 000 in 2011, only 10 years after starting and only 1.5 years after having invested your last 100€.

The best advice: Time in the market is more important than market timing. So holding ETF's longer is better than trying to time the market lows and only buying then.

Some ETF's I can suggest, all with very low annual costs and accumulating dividends:

IE00B5BMR087: follows the S&P500, 0.07% annual cost.  Reïnvests dividends.
IE00BYX8XD24: same ETF, slightly higher costs at 0.25% annual but with less volatility as it's weighed toward the low volatility index.
IE00B4L5Y983: tracks 23 indexes from developed countries worldwide, 0.2% annual cost. Reïnvests dividends.
LU1287023268: European bond etf (goverment bonds over 15 years), 0.17% annual cost. Reïnvests payouts.

I personnally buy an amount of these every month and do 50% IE00B5BMR087, 35% IE00B4L5Y983 and 15% LU1287023268.

Alfa1234 thanks a lot my friend for answering.You always provide quality information.

For the reason i prefer ETFS
Yes the main reason i bought ETFS is that i do now want to avoid exposure to 1 single stock (as you said).I think that Etfs are much better because you actually buy all the market.The above ETFS mainly tracks Nasdaq,Spy and DownJones.If the last 3 decrease then all etfs will aslo decrease(almost same lines).

Balanced portoflio-age
Actually i am young(below 30) so my purpose is:
1)Invest to ETFS 

2)Also buy stocks and hold for really a long time(10-20 years).I bought some of ETFS from the the list of my first post and also bought stocks of top companies.
Also i invest to stocks that decrease a lot due to covid-19 but they are kings in their area.
Hilton,Booking,Ryanair,Starbucks,UAL,AAL,Lufthansa,Exxon Mobil,Shell are some of my recent investments.

3)I will take point to the bonds.Do you have something to suggest?

Gold or silver are not great investements
I agree here,gold and silver is not the best investment.But i think there should be diversification.So i will invest some but again a very small proportion of my portofolio.Again

 Having gold or silver will not help you in this case, having some land, seeds and probably weapons would
I think this show that in every investment there should be diversfication.You invest 60/100 of capital in stocks,20/100 real estate opportunites,20/100 land.This is a great thinking and i completely agree with you(numbers are in luck).Actually with a list of capital investments i will begin a thread in the future.It will be a very productive discussion.

The best way to invest long term into the stock market is to buy small amounts of certain ETF's every month.
I will try to do as much as possible.I know that money that is not invested is losing value due to inflation.So i try to invest every profit as much possible.Stocks and etfs mainly.

The best advice: Time in the market is more important than market timing.
So you agree with me that long hold stocks and etfs will give you a lot of profit in the longrun.But the question is?
Which is better for the longrun?Stocks,etfs or indexes?
In your post you say that for longrun is better to invest in stocks than etfs(if you are young).But again you said that in general stocks are more riskier.

Some ETFS that you suggest
IE00B5BMR087,IE00BYX8XD24,IE00B4L5Y983,LU1287023268

In your list you have 4 etfs.A reason that you prefer the four above etfs is that they increase a lot in the longrun.Here are my questions.

In the above etfs you do not pay taxes,because most of these are based in Ireland-Luxembourg?Me personally i am from a country of Europe.So i think you suggest the above because you do not pay taxes to your profit right?

Alfa1234 i have seen in the past that you used Flatex.In which platforms i would found these etfs?I check Interactive brokers and i saw that they offer your 4 etfs.But again i am not sure if they let you trade,because there are trading restrictions due to geolocation.I will check it.


Here is my list of etfs
1)SPY2)VOO3)QQQ4)IVV5)VTV6)SCHD
7)USMV8)VOO9)IWF10)AGG
11)GLD12)VTI13)VUG 14)DIA

The question is that you strongly believe that your list is better than mine.This is because of tax avoidance due to Ireland-Luxembourg?Or that your etfs are more stable than the above list?Because i think that the my list has better roi than yours in the last years.

What is your opinion about index funds?Does it worth a try?Are better than your etfs?

Vanguard 500 Index Fund Admiral Shares (VFIAX)
Schwab S&P 500 Index Fund (SWPPX) ...
Fidelity 500 Index Fund (FXAIX) ...
Fidelity ZERO Large Cap Index (FNILX) ...
Vanguard S&P 500 ETF (VOO) ...
SPDR S&P 500 ETF Trust (SPY) ...
iShares Core S&P 500 ETF (IVV)
NASDAQ-100(NDX)

I have bought 4 of the above and especially NASDAQ-100.

Also we can invest in some general index like Dax30 or France but again very very small amounts,beacuse they do not have a lot of profit.

I think the list above is excellent.But again why you do not suggest any of the above indexes or etfs(due to profit from tax avoidance?).Actually with the above 8 indexes and the above 14 etfs you buy a very big amount of market.

With your own list i do not think that you own a big amount of total market(total top companies).As we said diversification has a major role for the longterm profit.

Again Alfa1234 you do a great post here,and i am really happy to see that this forum have members like you, that are willing to discuss about stocks and in general about investments.

I am waiting your answer...













« Last Edit: May 07, 2020, 02:30:21 AM by gamblehappier » Logged

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Re: ETFS suggestion(maybe market correction)
« Reply #10 on: May 07, 2020, 08:44:06 AM »
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I saw an interview of a fund manager in realvision in which they have make a backtest with 100 years of market data. They wanted to find the best allocation in order to have wealth preservation and appreciation in every environment. They found that the best allocation is to have: 24% stocks, 19% gold, 21% long vol,18% fixed income(bonds), 21% commodity trend(commodities). Also, they found that every 10 years +- there is a trend change in global mindset/sentiment. I cannot recommend ETFs because i haven't search for them much. Just be careful with the % of the holding that they hold in a market cap weighted index. For example, in the QQQ etf, the 33.21% of the allocation on the fund, goes to 3 stocks( Microsoft, Apple, Amazon). Check if you are OK with it before you invest.
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Re: ETFS suggestion(maybe market correction)
« Reply #11 on: May 08, 2020, 12:09:39 AM »
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I saw an interview of a fund manager in realvision in which they have make a backtest with 100 years of market data. They wanted to find the best allocation in order to have wealth preservation and appreciation in every environment. They found that the best allocation is to have: 24% stocks, 19% gold, 21% long vol,18% fixed income(bonds), 21% commodity trend(commodities). Also, they found that every 10 years +- there is a trend change in global mindset/sentiment. I cannot recommend ETFs because i haven't search for them much. Just be careful with the % of the holding that they hold in a market cap weighted index. For example, in the QQQ etf, the 33.21% of the allocation on the fund, goes to 3 stocks( Microsoft, Apple, Amazon). Check if you are OK with it before you invest.

Ilovethisforum i think that indexes and etfs are good because they are less risky.But again we should buy as you said stocks,bonds etc.Of course is important to know what you buy.And for me is good to mix percentages of companies and different type of markets.

I found a site(etf.com) that explains in a great detail which stocks are included to an etf.

I have a question.Do you know if the only factor on the etf stock line is whether the  stocks contained in each etf will increase / decrease?
What i want to say is what will happen if people start selling QQQ ,but the prices of Amazon,Apple ,Microsoft will continue to increase?The sudden human selling will not affect the price?

I think that the only factor of the price of the QQQ is the increase/decrease of the percentage of stocks,right?
I do not believe that Human sudden buying and selling,does not play any role.


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Re: ETFS suggestion(maybe market correction)
« Reply #12 on: May 08, 2020, 06:50:48 AM »
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I saw an interview of a fund manager in realvision in which they have make a backtest with 100 years of market data. They wanted to find the best allocation in order to have wealth preservation and appreciation in every environment. They found that the best allocation is to have: 24% stocks, 19% gold, 21% long vol,18% fixed income(bonds), 21% commodity trend(commodities). Also, they found that every 10 years +- there is a trend change in global mindset/sentiment. I cannot recommend ETFs because i haven't search for them much. Just be careful with the % of the holding that they hold in a market cap weighted index. For example, in the QQQ etf, the 33.21% of the allocation on the fund, goes to 3 stocks( Microsoft, Apple, Amazon). Check if you are OK with it before you invest.

Ilovethisforum i think that indexes and etfs are good because they are less risky.But again we should buy as you said stocks,bonds etc.Of course is important to know what you buy.And for me is good to mix percentages of companies and different type of markets.

I found a site(etf.com) that explains in a great detail which stocks are included to an etf.

I have a question.Do you know if the only factor on the etf stock line is whether the  stocks contained in each etf will increase / decrease?
What i want to say is what will happen if people start selling QQQ ,but the prices of Amazon,Apple ,Microsoft will continue to increase?The sudden human selling will not affect the price?

I think that the only factor of the price of the QQQ is the increase/decrease of the percentage of stocks,right?
I do not believe that Human sudden buying and selling,does not play any role.

The biggest buyer and seller in the market are ETFs. The way you are thinking (buy ETFs) is the way that the majority of the participants are thinking. That is why the Amazon or Apple most of the time will increase if the inflows to QQQ are positive and reverse. So if someone sells QQQ with big volume, most of the time Amazon and Apple will decrease in value.
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Re: ETFS suggestion(maybe market correction)
« Reply #13 on: May 10, 2020, 12:35:55 AM »
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I saw an interview of a fund manager in realvision in which they have make a backtest with 100 years of market data. They wanted to find the best allocation in order to have wealth preservation and appreciation in every environment. They found that the best allocation is to have: 24% stocks, 19% gold, 21% long vol,18% fixed income(bonds), 21% commodity trend(commodities). Also, they found that every 10 years +- there is a trend change in global mindset/sentiment. I cannot recommend ETFs because i haven't search for them much. Just be careful with the % of the holding that they hold in a market cap weighted index. For example, in the QQQ etf, the 33.21% of the allocation on the fund, goes to 3 stocks( Microsoft, Apple, Amazon). Check if you are OK with it before you invest.

Ilovethisforum i think that indexes and etfs are good because they are less risky.But again we should buy as you said stocks,bonds etc.Of course is important to know what you buy.And for me is good to mix percentages of companies and different type of markets.

I found a site(etf.com) that explains in a great detail which stocks are included to an etf.

I have a question.Do you know if the only factor on the etf stock line is whether the  stocks contained in each etf will increase / decrease?
What i want to say is what will happen if people start selling QQQ ,but the prices of Amazon,Apple ,Microsoft will continue to increase?The sudden human selling will not affect the price?

I think that the only factor of the price of the QQQ is the increase/decrease of the percentage of stocks,right?
I do not believe that Human sudden buying and selling,does not play any role.

The biggest buyer and seller in the market are ETFs. The way you are thinking (buy ETFs) is the way that the majority of the participants are thinking. That is why the Amazon or Apple most of the time will increase if the inflows to QQQ are positive and reverse. So if someone sells QQQ with big volume, most of the time Amazon and Apple will decrease in value.

Thanks i lovethisforum.As i understand banks plays the major role as they have capital.If banks sells big amount of Amazon,Apple,QQQ price will decrease,because company that has QQQ etf will also sell QQQ,in order to track the prices.
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