Dante Loi
Spain
26d
Edited
🌎 π†πžπ¨π π«πšπ©π‘π’πœπšπ₯ 𝐁𝐫𝐞𝐚𝐀𝐝𝐨𝐰𝐧 πŸ‡ͺπŸ‡Ί Geographical and geopolitical diversification is a cornerstone of my investment strategy. In my opinion, geographical diversification is the only way to reduce volatility without sacrificing performance, unlike many 60/40 equity-bond allocation styles. However, it goes beyond volatility. While volatility might be unpleasant for a novice investor, a seasoned one knows that, in the long run, daily oscillations do not matter at all. The real risks lie elsewhere. For example, the inability to liquidate assets due to sanctions, wars, earthquakes, or pandemics; these are the kinds of events we should be prepared for. All the rest is just noise. That is why I am a strong believer in equally weighted geographical diversification. In my opinion, there is no rational reason to overweight the US or China relative to Europe or other developed and emerging markets. Argentina is a great example; it is considered very risky due to its history, yet the Argentinian market has outperformed the S&P 500 by far lately. We humans are interpolating machines of the first order; we tend to think that tomorrow will continue on the same trajectory as yesterday, but that is often not the case. Past performance is not indicative of future returns, which is why I choose to spread my bets equally across as many regions as I have access to. You may have noticed that my portfolio has a slight bias towards the EU. This is because I live in the EU, and I spend and save in EUR. Therefore, having a small home bias protects the portfolio from currency fluctuations. Very often, I see European investors investing as if they were Americans, following strategies and tips from American YouTubers. I do not think that is a good approach in general. The EU and the US are substantially different economic systems, with different currencies, tax systems, and retirement programs. Therefore, if you are European, you should invest in a way tailored to your needs. My portfolio seeks to offer just that! If you would like to learn more about my diversification across various sectors: πŸ”— etoro.tw/4qifOy5 You can also follow me on 𝕏 and the other platforms: www.x.com/dantesinvesting www.youtube.com/@dantesinvesting www.instagram.com/dantesinvesting www.linkedin.com/in/dantecpp Best, Dante
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