Hi all, I’m thinking about selling off $25K of U.S. index funds in a 250,000 portfolio to hedge again recessionary factors, fears over tariffs, etc…we’ve seen how the market has performed in the last week. I am not panicking wide-scale, but I have lost about 10% in my overall portfolio and 50k in just the last week alone. I know that is not a lot for some folks, but it is to me and I’m getting a bit more concerned if this trend continues.
With this in mind – again was going to take 25k out of the index funds and place in the following:
11k: **Coca-Cola**, I know it’s a U.S. equity but it seems recession-proof and W. Buffet says it’s a stock he will never sell from his portfolio. Obviously has foreign exposure too. Pays about .50 dividend/qtr.
9k: **DXJ:** Japan ETF which invests in all of the large Japanese CO’s with their associated divi’s. Hedges against instability vs. U.S. dollar as well and other factors. Buffet has also been recently moving $$ into Japan’s market.
5K: **EUAD**: European-defense and Aerospace ETF: holds Rolls-Royce at about 12% which seems to be a darling of the market lately.
I mention the Divi’s only in passing for awareness, performance is more important to and to hedge against U.S. instability at the moment (hopefully not next 3-4 years). Again most of my $$ stays in the U.S. market – I just wanted to see what others thought of this plan.
The 2 ETF’s are rated as 5\* by Morningstar and you can look more into their yearly/historical splits which have been good.
Thanks.