Great advice! Diversification is fundamental. Just to add some more info: In some emerging markets (such Peru), where interest rates are increasing you could find regular savings accounts that pay 4.5 - 6.25% annually in local currency.
Jan 5, 2023·edited Jan 5, 2023Liked by Graham Stephan
Absolutely agree with you. Currency risk must be assessed. But in the case of Peru (Nuevo Sol - PEN) is one most stable currency compared to Turkish Lira, Argentina Peso or even Colombian Peso, Chilean Peso or Brazilian Real. Additionally, Peru is one the few countries in Latam where you could save your money in PEN, US Dollar or even Euros. In my case, I am Peruvian living in Spain and with some money in the US. So, I am proudly diversified. Money in Peru (PEN and US), some euro in Spain and savings accounts and invested in US through Ameritrade and TD Bank. Peru closed 2022 with an inflation of 8.5% (the central bank is one of the few institutions that actually works in Peru) https://www.marketscreener.com/quote/index/MSCI-PERU-GDTR-121752020/news/Peru-s-CPI-rises-0-79-in-December-annual-inflation-reaches-26-year-high-42643628/
My plan for 2023
1. Income is the asset. Continue to build reliable income streams.
2. Double down on Real Estate.
3. Low to Medium Financial Leverage Positions.
4. Increase Partnership Leverages
Ontario, Canada
Number 1 is stellar. Press on!
My Plan:
1: save 1 year of expenses (working as an real estate agent)
2: invest in index fund (MSCI World)
3: buy my first rental property (maybe cash)
good summary Graham
lots of respect for Swenson as I followed him for years
I dodged the 2008 crisis staying in cash when managers were deriding me months prior
Big cash allocation served me well again in 2022.
My 4 children all in West LA and I will buy real estate when recession hits.
I love waking up to some good information mixed with Graham’s humour.
My 2023
Eliminate advisory team paying .8% fees annually.
40% growth stocks dollar cost averaging
40% ETFs
20% fixed income, money market / treasury / bonds
Build home with cash reserves for my family (only money market) not risking in equities, rent out current home.
Great advice! Diversification is fundamental. Just to add some more info: In some emerging markets (such Peru), where interest rates are increasing you could find regular savings accounts that pay 4.5 - 6.25% annually in local currency.
Interesting... Stability of the currency also needs to be taken into account though. That's a risk factor in developing countries.
Absolutely agree with you. Currency risk must be assessed. But in the case of Peru (Nuevo Sol - PEN) is one most stable currency compared to Turkish Lira, Argentina Peso or even Colombian Peso, Chilean Peso or Brazilian Real. Additionally, Peru is one the few countries in Latam where you could save your money in PEN, US Dollar or even Euros. In my case, I am Peruvian living in Spain and with some money in the US. So, I am proudly diversified. Money in Peru (PEN and US), some euro in Spain and savings accounts and invested in US through Ameritrade and TD Bank. Peru closed 2022 with an inflation of 8.5% (the central bank is one of the few institutions that actually works in Peru) https://www.marketscreener.com/quote/index/MSCI-PERU-GDTR-121752020/news/Peru-s-CPI-rises-0-79-in-December-annual-inflation-reaches-26-year-high-42643628/
DCA into an index fund for equities is the least sexy but one of the SMARTEST strategies the average person can implement. Great post as always Graham