Greetings!
I am currently building my Permanent Portfolio. I'm elated and nervous at the same time. Just stepped out of my bank funds - out of fear, given the recent nationalizations and threat hanging over the remaining banks in my country. Bankruptcies are no longer an impossibility and the State is so deep in debt that relying on them for the safety of my savings seems highly hazardous. So I'm reading like hell the last days and the Permanent Portfolio seems like something for me at this stage. I'm not a speculator and I'm not obsessed about big earnings. I just want my capital to survive this economic crisis - a reasonable expectation, I hope
I'm living in Europe, so for the stock part of my portfolio, I'm tempted to commit to some fund following the Euro Stoxx 50 index. But when I look at the companies involved, I see several banks. We all know the threat looming over the European banks in these times of sovereign debts crisis So I'm kind of wondering if following this index is really a good idea.
So I guess, through this thread, I hope to probe your opinions on the appropriate stock component of the Permanent Portfolio in the Euro Zone. Also, should Euro banks be an element of the stock component given their fragility in this period and (in the eyes of many commentators) their imminent collapse?
Thanks a lot and props to this forum!
Danny
European Stock indices
Moderator: Global Moderator
Re: European Stock indices
Hi Clive.
True, 600 seems less dependent on banks.
I read this on Stoxx.com: "With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalisation companies across 18 countries of the European region"
Now I'm wondering what are the consequences of a too large dispersion
But I guess, reflecting on the chances of large, mid and small companies going bankrupt in a time of crisis is a speculative consideration and has no place in the Permanent Portfolio. I mean, diversification is one of the founding principles after all.
Thanks again for the suggestion,
Danny
True, 600 seems less dependent on banks.
I read this on Stoxx.com: "With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalisation companies across 18 countries of the European region"
Now I'm wondering what are the consequences of a too large dispersion
But I guess, reflecting on the chances of large, mid and small companies going bankrupt in a time of crisis is a speculative consideration and has no place in the Permanent Portfolio. I mean, diversification is one of the founding principles after all.
Thanks again for the suggestion,
Danny
Re: European Stock indices
Another option:
iShares EURO STOXX (DE)
https://wertpapiere.ing-diba.de/DE/Show ... 000A0D8Q07
http://de.ishares.com/en/rc/stream/pdf/ ... _DE_en.pdf
I went with that and iShares DAX (I live in Germany).
iShares EURO STOXX (DE)
https://wertpapiere.ing-diba.de/DE/Show ... 000A0D8Q07
http://de.ishares.com/en/rc/stream/pdf/ ... _DE_en.pdf
I went with that and iShares DAX (I live in Germany).