Following several mistakes that shrinked my portfolio by 20%, I have decided to sell everything apart from a few positions that I believe are worth the risk (BABA, MVST).
I am now holding 60k in Cash and I’m already in a 89%/11% allocation of a global developed markets ETF (IWDA) and Emerging Markets ETF (EMIM) for around 14k. I want to throw the remaining 60k in this allocation. On top of that, I have around 2.5k savings per month to add on.
Research has shown that investing lump sum is a better strategy 75% of the time for an 100% equity portfolio. But when I ask myself “does this feel like we are living somewhere in the top 75percentile of the time with double digit inflation, rising interest rates, ongoing war, threat of another war, insane energy prices”, the answer is no. I might be wrong, but I strongly feel that if anything, we are easily at the bottom 25th percentile of times.
So, unless someone has a strong case against it, I want to slowly DCA the extra 60k. But how long a time horizon should I set to do so?
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