Hey,
I'm a bit confused and nervous with the current situation (title).
Currently, I'm DCA-ing MSCI World+EM with the classical 70+30 proportion.
Seeing EUR-USD rate, stock market going down, and the inflation makes me question my investment strategy.
What are the best alternative?
Thoughts, please? What are you guys doing
EDIT: I'm super grateful with all these answers, some of y'all took your time explaining the basics to me.
I'm a bit confused and nervous with the current situation (title).
Currently, I'm DCA-ing MSCI World+EM with the classical 70+30 proportion.
Seeing EUR-USD rate, stock market going down, and the inflation makes me question my investment strategy.
What are the best alternative?
- Buy EUR hedged MSCI (or rather S&P 500): betting that the higher TER+Tax when EUR regains its strength won't eat up the currency gain and S&P return. The stock market is going down though...
- Buy (US?) Bonds now that the Feds and ECB hiked the interest rate: betting stock market wont recover anytime soon, and the YTM won't be eaten by currency risk and the opportunity cost for future stock comeback.
- Buy gold as store of value now that it's cheap: betting it will goes up again when interest rate is going down. Reinvest to usual MSCI World+EM. Currency risk is there though, gold price RN in EUR actually is pretty high, thanks to EUR/USD rate.
- Buy USD: betting EUR will go down further, and buy back EUR when it regains strength, reinvest to usual MSCI World+EM.
- Some/all of them, but at what proportion? I can only DCA €1000 p.m., so my options are limited.
Thoughts, please? What are you guys doing
EDIT: I'm super grateful with all these answers, some of y'all took your time explaining the basics to me.