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Market crash portfolio?

Z

Zaiga

BANNED MEMBER
Jul 24, 2022
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Continental Europe
#1
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Hey guys!

I am pretty conservatively investing into ETFs (World etc.).
But one could also use a couple of global acting companies with a global exposure to "imitate" a world portfolio.

It would be interesting to see such a portfolio and to pick the stocks which lost the most during the recent crash.
Focusing on the "crash titles" could bring high returns when the market will switch.

Any ideas on this "stock picking" suggestion?

Greetings
 
#2
Zaiga said:
It would be interesting to see such a portfolio and to pick the stocks which lost the most during the recent crash.
Focusing on the "crash titles" could bring high returns when the market will switch.
Click to expand...

Do you not think there is a reason why they crashed the most? Or you feel the market and every professional investor has got it wrong on these stocks?

Zaiga said:
Any ideas on this "stock picking" suggestion?
Click to expand...

Buy a global index and sleep well at night. I wouldnt bother with such a strategy unless its play money your using. A portfolios performance comes via its diversification not the concentration.
 
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#3
Martin Everson said:
Do you not think there is a reason why they crashed the most? Or you feel the market and every professional investor has got it wrong on these stocks?



Buy a global index and sleep well at night. I wouldnt bother with such a strategy unless its play money your using. A portfolios performance comes via its diversification not the concentration.
Click to expand...

Like I've written, I own a global index portfolio. But I like individual stocks, as they eliminate the ETF in between. Just wanted to know if anyone has a global portfolio without an index ETF
 
#4
Zaiga said:
Like I've written, I own a global index portfolio. But I like individual stocks, as they eliminate the ETF in between. Just wanted to know if anyone has a global portfolio without an index ETF
Click to expand...
Well, we discussed it a few weeks ago.
Check
Of course, these are not crash-stocks. However, the mentioned companies cover the globe, are more efficient than an ETF by simply avoiding the "lame ducks" every index contains and will be around for the next 100 years or so.
Going bottom fishing by looking for crash stocks is too dangerous. It's not investing, it's casino gambling!
In the current environment you have to find a balance between risk and reward. Stick with large globally operating companies who pay high dividends.
 
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#5
backpacker said:
Well, we discussed it a few weeks ago.
Check
Of course, these are not crash-stocks. However, the mentioned companies cover the globe, are more efficient than an ETF by simply avoiding the "lame ducks" every index contains and will be around for the next 100 years or so.
Going bottom fishing by looking for crash stocks is too dangerous. It's not investing, it's casino gambling!
In the current environment you have to find a balance between risk and reward. Stick with large globally operating companies who pay high dividends.
Click to expand...
Thank you for your reply.
You mentioned a couple of companies like "Unilever, Nestlé, P&G, perhaps even BAT", but do you've also full "portfolio of 20+ companies" ?
I would be very interested to see such a stock portfolio.

Greetings!
 
#6
Zaiga said:
Thank you for your reply.
You mentioned a couple of companies like "Unilever, Nestlé, P&G, perhaps even BAT", but do you've also full "portfolio of 20+ companies" ?
I would be very interested to see such a stock portfolio.

Greetings!
Click to expand...
No, not 20+. I consider this too many for an individual investor. In that case you are indeed better off with an ETF.
See, the point of investing in large globally operating companies with high dividends is to achieve -with a handful of individual stocks- a slightly better result than with an index-ETF. Mainly through dividends, not capital gains. Time horizon: 10 years.
 
#8
369 said:
germand and uk high energy/gas consuming companies
Click to expand...
Why? Do you expect the energy situation (gas in particular) in these two countries to normalize anytime soon??
Germany + UK both have no commodities and are now forced to buy expensive from "friendly nations" :rolleyes: at very unfavorable conditions. I think high energy/gas consuming companies in these two countries will be at a permanent disadvantage compared to its competition in other parts of the world.
 
#9
backpacker said:
Why? Do you expect the energy situation (gas in particular) in these two countries to normalize anytime soon??
Germany + UK both have no commodities and are now forced to buy expensive from "friendly nations" :rolleyes: at very unfavorable conditions. I think high energy/gas consuming companies in these two countries will be at a permanent disadvantage compared to its competition in other parts of the world.
Click to expand...
Correct i meant to short them.Thats a secure bet
 
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#10
Martin Everson said:
Buy a global index and sleep well at night. I wouldnt bother with such a strategy unless its play money your using. A portfolios performance comes via its diversification not the concentration.
Click to expand...
100% that.

I would also add that your strategy will only work if these companies survive.

The lower these stocks crash, the more attractive they are to scavengers (private equity) that will just buy them out. Some of them definitely will go bankrupt or will just be taken private at a very low valuation and will never recover to their prior highs.

TL;DR: don't waste your time, even if you beat the market (which you won't) it will be at a higher volatility and your extra performance won't compensate you for that
 
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backpacker said:
Biden did that almost three weeks ago. Today's crash has nothing to do with it. It is just because of Xi and his diffuse geopolitical and economic policies + COVID craze. Personality cult is never good for financial markets.
Click to expand...
Xi or anybody else would not change anything.
Don't get fooled that china and US are not coworking in implementing total control mechanism to ALL citizens.
The hard drop is about the semiconductors and forcast of a big conflict with China which both sides planned together to suck out peoples wealth
 
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#19
369 said:
Xi or anybody else would not change anything.
Don't get fooled that china and US are not coworking in implementing total control mechanism to ALL citizens.
The hard drop is about the semiconductors and forcast of a big conflict with China which both sides planned together to suck out peoples wealth
Click to expand...
Ever thought about self-referral?
 
#20
Martin Everson said:
Buy a global index and sleep well at night. I wouldnt bother with such a strategy unless its play money your using. A portfolios performance comes via its diversification not the concentration.
Click to expand...
As usually the Wise words from Martin, following his advise is never wrong... almost never ;)
 
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