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.
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).
If interest rates rise in the US in 2023 and in Europe in 2024, a decline in equity returns is likely in the medium term for developed countries and US large caps.
In order to avoid the overpriced European big caps, some ETFs covering Germany, England or broader capitalization seem more attractive.
While stocks suffer in the event of extreme inflation, they still offer acceptable protection in the event of limited inflation. Make minor adjustments but do not deviate from your investment objectives.
Buying a “developed world” ETF today means gaining massive exposure to highly valued growth stocks.
The demand for real assets, especially real estate, is enormous in Europe. Unless interest rates rise sharply or the economy slows down, this situation does not seem to be easing.
Various forecasters have changed their view of the dollar and now expect a robust development rather than weakness due to a possible rise in interest rates.
Passive investment funds such as ETFs are effectively managing a growing share of the corporate world. Vanguard and BlackRock should further develop their charter of good corporate governance practices.