European PP

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Shaymor
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European PP

Post by Shaymor » Sun Aug 26, 2018 4:10 am

Hi,

I am French and i am beginning an european PP.

What advice could you give me ? Who keep making an european PP ? Results are good ?

Thanks.
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blue_ruin17
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Re: European PP

Post by blue_ruin17 » Sun Aug 26, 2018 1:56 pm

Do you have access to ETFs for French government Bonds and Bills? How do you plan to hold your gold?
"Like a confident pack, a confident portfolio provides both strength in fact, as well as — and this is the part I bet you’re missing right now and the focus of this note — strength in spirit."
Shaymor
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Re: European PP

Post by Shaymor » Sun Aug 26, 2018 2:20 pm

I have access to ETFs for eurozone.

I choose this ETFs :

25% Stock : Amundi index MSCI EMU (12.5%) and Ishares MSCI EMU (12.5%)
25% Bond : Lyxor ultra long Duration euro (12.5%) and Xtrackers Eurozone Government Bond 25+ (12.5%)
25% Cash : french short-term bond
25% Gold : Gold Bullion Securities (5%) and ETFS Physical Gold (5%) and physical gold (15%)
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blue_ruin17
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Re: European PP

Post by blue_ruin17 » Sun Aug 26, 2018 5:11 pm

Looks decent to me, without being familiar with the particulars of those specific ETFs. Good call on holding a good chunk of gold in physical form. If the "Gold Bullion Securities" you are referring to is gold equity, like miners and refiners and such, then that breaks the warranty of the PP ... but honestly, it won't break the portfolio, though be prepared for some tracking error, for better or for worse.
"Like a confident pack, a confident portfolio provides both strength in fact, as well as — and this is the part I bet you’re missing right now and the focus of this note — strength in spirit."
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europeanwizard
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Re: European PP

Post by europeanwizard » Mon Aug 27, 2018 1:27 am

I have a EU PP (coming from The Netherlands) but I'm not happy about the stocks part, atrocious returns last year when compared to the US. I'm thinking about getting a global stocks ETF, instead of European.
Shaymor
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Re: European PP

Post by Shaymor » Mon Aug 27, 2018 3:15 am

Gold Bullion Securities is like ETFS physical gold, it is not a gold equity. Thanks for your return.

Europeanwizard, what's your results with EU PP ?
Shaymor
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Re: European PP

Post by Shaymor » Mon Sep 03, 2018 4:13 am

First month = -0.81%
CAGR = -9.67%

and you ?
tarentola
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Re: European PP

Post by tarentola » Wed Sep 05, 2018 3:21 am

Shaymor

I have been running a European PP for a while, also in France. I cannot say the results are good this year.
For example, year to date:

1. My PP. This contains individual French blue chips and a DAX ETF: -1.3%.
A paper four-ETF PP of CEU, MTH, GBS and C13 (similar to yours) which I follow for comparison: -1.2%

2. My dividend portfolio of mostly US blue chips: +0.71% including dividends.

3. My multi-asset portfolio (like Paul Merriman's ultimate buy and hold) -0.53%.

European stock markets have not gone up in recent years by comparison with the US markets, and the weakness of the dollar has not helped. The best performer YTD of the PP has been long-term bonds MTH with +3%, against all expectation.

The Euro PP does seem to work longer term, as historical performance has been similar to the US PP - see https://portfoliocharts.com/portfolio/p ... folio-ger/ for example.

Your conventional, simple portfolio looks good to me and is certainly beating mine this year. (Mine is a bit complicated for historical reasons: I already held the individual shares before putting the PP together.)
Last edited by tarentola on Mon Oct 01, 2018 8:27 am, edited 1 time in total.
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frugal
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Re: European PP

Post by frugal » Sat Sep 22, 2018 1:34 am

Shaymor wrote:
Sun Aug 26, 2018 2:20 pm
I have access to ETFs for eurozone.

I choose this ETFs :

25% Stock : Amundi index MSCI EMU (12.5%) and Ishares MSCI EMU (12.5%)
25% Bond : Lyxor ultra long Duration euro (12.5%) and Xtrackers Eurozone Government Bond 25+ (12.5%)
25% Cash : french short-term bond
25% Gold : Gold Bullion Securities (5%) and ETFS Physical Gold (5%) and physical gold (15%)
seems cool O0
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frugal
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Re: European PP

Post by frugal » Sat Sep 22, 2018 1:45 am

tarentola wrote:
Wed Sep 05, 2018 3:21 am
Shaymor

I have been running a European PP for a while, also in France. I cannot say the results are good this year.
For example, year to date:

1. My PP. This contains individual French blue chips and a DAX ETF: -1.3%.
A paper four-ETF PP of CEU, MTH, GBS and C13 (similar to yours) which I follow for comparison: +0.56%.

2. My dividend portfolio of mostly US blue chips: +0.71% including dividends.

3. My multi-asset portfolio (like Paul Merriman's ultimate buy and hold) -0.53%.

European stock markets have not gone up in recent years by comparison with the US markets, and the weakness of the dollar has not helped. The best performer YTD of the PP has been long-term bonds MTH with +3%, against all expectation.

The Euro PP does seem to work longer term, as historical performance has been similar to the US PP - see https://portfoliocharts.com/portfolio/p ... folio-ger/ for example.

Your conventional, simple portfolio looks good to me and is certainly beating mine this year. (Mine is a bit complicated for historical reasons: I already held the individual shares before putting the PP together.)
hello,

why do you use so many portfolios?

Why not to stick to EUPP only?

All the best! ^-^
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Andreykash
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Re: European PP

Post by Andreykash » Tue Sep 25, 2018 11:28 pm

Hello All! I have a conceptual question regarding PP for eurozone countries. The question is about gold - it seems to me that price of gold in euro will not be affected by a recession or inflation in one of the countries. If this is true than my proposed solution is to invest in pan-European ETF instead of a national ETF of a single country. The bonds and cash can stay filled with Bunds (long term German federal government bonds) and Bubills (German T-bills) as protection against deflation and recession. Please comment
PP student and investor
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Kbg
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Re: European PP

Post by Kbg » Wed Sep 26, 2018 8:24 am

If it is possible I would try to do some research on gold vs. the Euro/Pound/old DMark and see how they historically performed. If historical performance reasonably matches what gold is supposed to do in a US portfolio then go with gold.

In the US, gold tends to also be negatively correlated with equity bear markets and has high volatility, both are helpful when equities are doing poorly.

All this assumes you want to stay true to the method and rationale of a PP...if you don’t then it really doesn’t matter.

I’ve mentioned many times that I think the PP mix is not good for younger investors in the growth phase of saving. More stock and less of everything else.
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