Please review my investment strategy Planning

[dancergirl600]

I started investing in January last year I've selected a fixed amount to go towards saving plans each month and once every three months I pick a special stock to invest my money in. This year I especially want to update my savings plan and add specific stocks and REITs.

My current saving plan:

200€ - X(IE)-MSCI WORLD 1C

100€ - AIS-AM.ID.MSCI EM SRI EOC

100€ - Gold

Now for this year, I wanted to add further ETFs and a REIT. These are the positions I came up with so far:

Monthly savings plan:

300€ - X(IE)-MSCI WORLD 1C

200€ - AIS-AM.ID.MSCI EM SRI EOC

100€ - Gold

200€ - iShares Nasdaq 100 UCITS ETF (Acc)

200€ - iShares Global Clean Energy UCITS ETF

100€ - O

The rest of my funds are used to buy specific stocks although here I'm still collection possible picks for due diligence.

 

[o_mlly]

@dancergirl600 First I'm no expert and I'm also learning atm. So I'll just ask some questions of what surprises me

First I don't understand why you invested so much into gold, what are your goals with this portfolio and when do you want to start cashing in? What made you chose gold over bonds?

Also, I believe there is quite an overlap between your world etf and the nasdaq one. What is the logic behind it?

 

[james2333]

@o_mlly No idea why people invest in gold either, he is not the only one I've seen here. I mean generally I know why, safe asset, but so little money and as a long term investment is just a bad choice

 

[asperd]

@james2333 usually the argument is that gold (and in general commodities) have a negative correlation to stocks(stock goes down, gold goes up) and provides better diversification. There are some researches which explains why maybe there is no much reason to actually include it in portfolio

This video explains it quite well

 

[james2333]

@asperd I got this but stocks are up all around the world almost everywhere close to pre-covid levels.

Why would anyone invest in gold now

 

[asperd]

@james2333 as I mentioned before - to reduce your portfolio volatility, gold is usually seen as "safe haven"

but of course there are other ways to reduce it and even better ways

 

[o_mlly]

@james2333 Well we don't know if it's long term here. Also I've heard some people like physical gold because it isn't so easy to resell an thus reduce the chance of panic sell.

 

[somanyblessings]

@james2333 Inflation hedge mostly..

 

[urban_legend]

@james2333 I would dedicate 5% of my portfolio for gold, no more.

Anyway, for now, i don't have gold investments