US fund "ideas"

Bostonerimus1

aroominyork said:

What's IEA please? All I can find is International Energy Agency...

I can't imagine Trump doing much to harm US large cap but surely, at some stage, they are due some kind of reckoning. Whether that means rebalancing to US mid caps or non-US is an interesting question which, I am sure, we will all answer perfectly with hindsight in a couple of years. Because I am underweight US (around 45%, like masonic) the logical reaction is towards US mid-caps (more for balancing than for the reason I opened this thread).

Institute of Economic Affairs, a free market, neoliberal think tank much loved by Liz Truss and libertarian conservatives in general. The next US administration has many policies that are in line with IEA thinking. I have severe doubts about that economic model particularly when combined with tariffs and an anti-immigration agenda, and so will take some profits and reduce my US exposure over the next year, but it will still be a large part of my portfolio.

PS I notice that the DJI is up another 1% this Monday morning...it's all too much!

InvesterJones

aroominyork said:

I can't imagine Trump doing much to harm US large cap

Depends on the large cap.. there are certain communications companies which he's railed against in the past, and ones in competition with his and Musk's own social medias might not fare too well.

aroominyork

masonic said:

As it happens I bought some SPX4 on Monday. Only 5% to my 45% CSP1 in order to broaden my broadly market cap-weighted US exposure. I had then been meaning to sell some CSP1 to bring my allocation back to 45%, for which the opportunity came today. Lucky timing on both counts for once. I also finally took the opportunity to reintroduce a small holding of global aggregate bonds into my portfolio.

I have been mulling this over because I also limit my US exposure to about 45% of my equity allocation. Of that, about 65% is in index funds and the rest is in Fundsmith Sustainable and PSRW (a value ETF). Ignoring that a small amount of the Fundsmith/PSRW holdings are in the Mag7, that means only about 30% of my equity holdings track the US market, a substantial underweighting to a global index fund. Looking forward (and conscious not to chase underperformance of the last year or two), unweighting the US and having a value, active or small/mid cap allocation doubles the degree to which I am hedging against the Mag7 and the US market more generally. I am tempted to reduce those two plays and move them into index funds.