Hi guys! I'm looking for some advice / points of view on something. For the last couple of weeks i've been thinking and thinking what i should do with my portfolio / investment strategy. So, I'm from Europe, and i currently have some money invested into the US market + some spare money (I'll show the percentages below). Right know, i have some spare money and i have the possibility to it into some Term deposits with maturity from 1 month, up to 3 years, which i think pays out quite good or just keep DCA into the market.
Ok so first, my portfolio right now is still positive overall and it looks like this: VOO – 25%, QQQ – 18%, NVDA – 12%, AAPL – 11%, MSFT – 10%, GOOGL – 7%, RKLB – 3%, UNH – 3% and the rest 11% split into V, ASTS, MA, HD, AMZN, TGT, DIS, BA and TSLA. For the past year or so, i didn't add anything to individual stocks and just DCA into VOO/QQQ every month.
Now, the banks right now have these interests (i've selected from different banks, the best ones for each maturity period): 1 month – 5.7%, 3 months – 7.3%, 6 months – 7.5%, 1 year – 8.2%, 2 years – 8.45%, 3 years – 8.7%. But before you say holy s**t, these are good returns, right now, here, the inflation rate is at 15% (which in reality i think it's even worse), so it's not that great if you look at it that way.
Looking at the market right now, 7.5% or 8.2% seems pretty good. I know the market average return is around 8% to 9% but I'm not sure the market is gonna have these kind of returns (at least the next few years?). But i could be right, i could be wrong of course. I just don't feel like it's gonna do great next period, that's all.
So now back to my dilemma… As i said, for the past year i just DCA each month into VOO/QQQ. Besides what's already invested, i have some spare cash i would like to deploy right now and i see these scenarios.
– Sell the portfolio, and put it all + spare money + new money each month into term deposits (6 months or 1 year maturity)
– Keep portfolio as it is and put spare money + new money each month into term deposits
– Keep portfolio and put the spare money into it + DCA each month as usual and ignore the term deposits
If i missed something, maybe a better option or some information that i missed and might be really important to take into consideration, please tell me. Right now i'm something like 60/40 into second scenario. Just don't touch the portfolio, but put the rest of the money into these deposits (i was thinking the 1 year one may be the best one ?), until the market stabilizes a bit. Also, im in my twenties, so my investment hold period is long. I don't need the money any time soon (that's 1 of the reason why i think the option to keep DCA into the market may be better because of the compound interest?).
I could really use some advice on this guys. What would you do in this situation? Sorry if some terms are not right or something, as im not from US, some things related to investing may be different and i might wrongly translate them. Thanks a lot guys!
TLDR: You have spare money right now. How you choose to use it? Sell portfolio and put everything into Term deposits (at least for the next couple of years) / Keep portfolio and put rest into Term deposits / Ignore the Term deposits and keep DCA into the market as usual.
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