Hey guys,
With 2022 approaching ever so quickly, I was wondering what your approach to the upcoming year is in terms of asset allocation.
I must admit that 2021 ended with quite a few developments that I would not have expected at all. In spite of supply chain issues, rising inflation, the continuous disruption of economic processes by COVID variants and an approaching end of the Fed’s more than generous support of the US market, most of the large indices are trading at or near their all time highs, with no signs of a short-term slowdown (granted the volatility has been up as of late mostly thanks to Omicron).
I honestly never would have expected markets to keep the course this easily with all the above mentioned uncertainties/headwinds coming at them. With that being said, what are your macro level expectations for 2022 and how does it affect your overall asset allocation?
I for starters am sitting on a relatively big pile of cash waiting to be deployed once markets cool down. My underlying assumption is that we are going to see some sort of major correction in the near to mid future and I’d like to profit from that.
With that being said my current allocation looks something like this:
-37,5% in real estate (as investment, not personal) -23,5% in a 2,8% yielding life insurance -19,5% in stocks -18,5% in cash but intended to be in stocks eventually -1% in other financial assets
So what are you guys’ thoughts going into 2022? Are you intending to modify your allocations once the fed raises the interest rates? And how are you currently allocating your assets?
Looking forward to hearing about your approach to 2022! :)
Submitted December 28, 2021 at 06:47AM by Dense_Beach https://ift.tt/343tXtQ
