By tracking key ETF price ratios (PER and PEG) and forex levels, you can identify good entry points into regions and currencies for long-term investing.
Based on the valuation of equities, but also currencies, the global macro investor will be able to build a diversified portfolio of ETFs.
The environment has become unfavorable for virtually all investments, but the investors should be reluctant to make significant portfolio changes based on uncertain alpha research.
One should be careful with concentrated ETFs as we have seen during this first quarter in case of ETFs focused on Russia, but also on a specific region (Eastern Europe) or on a theme (BRIC).
You can consider investing in markets with abnormally cheap currencies and look more closely at ratios that consider the share prices.
The two pillars will form an annuity that protects you against the risk of longevity but do not overload your second pillar.
Whether this is your first investment, but also if you want to make sure you don’t make a mistake, you need to clarify the following three questions: when, how much and how to invest.
In serious jurisdictions your ETFs are largely protected in case of broker or custodian default, since they will be separated from the bankrupt estate.
A pension plan on an individual basis generally gives better results than the more expensive 3b solutions of banks and insurance companies (managed funds or life insurance).
Consider ETFs as the building blocks of your wealth without forgetting to take into account the price level and your overall portfolio before investing.