Thanks for you input guys. You mentioned some really good points.
To explain some of my desicions here are some of my view points:
Some thoughts on this:
1) Accurately telling when the next financial crisis will hit is as hard as telling when a stock / crypto has reached a top or bottom. Sure, a lot of people have been waiting for a stock market correction since the last few 2-4 years, then again the markets may very well continue to grow for the next 5-10 years until crisis hits.
2) During times of crisis people tend towards less risky investments. Thus I'm not quite sure whether crypto is a viable safe haven / financial crisis hedge -- yet.
3) Historically BTC has outperformed pretty much every alt out there, keep that in mind when adding alts to your portfolio
1. Yes, I fully agree. The Dow and indices are looking good right now reaching ATHs. But I like to refer to statistics. One thing is sure whether 1 year or 5 year there will be a crash some time.
2. I guess it's arguable if crypto is a safe haven or not. But I'm the kind of person who belives crypto will go up in a crisis.
3. Good point. I always try to have about 80% in BTC and 20% in Alts.
I appreciate your efforts and thinking and the way you are investing while you are still a student. In this period of age no one can afford real estate investment because it needs a huge capital. Precious metals is good choice but in my opinion you have to increase the percentage of your investment in it, because metals price are much stable so there is no chance of loss and it also increases gradually.
The most important thing is don't rely on cryptos too much, 70 to 90 percentage is a huge investment, i will never advice you to do so because cryptos are unpredictable and highly volatile, keep it low about 50% of your total funds.
Well, I like precious metals but I see them as "having money" but not "making money". My investment principle is if you are young take a risk. If you lose money you can earn some again. If you are old don't risk your retirement funts. Therefore I will build a a risky porfolio now and make it saver each year.
I am in a similar position as you right now. But I'm probably going to be investing more into crypto rather than precious metals, I believe there is more potential going forward.
Ultimately there will be a financial crash but the question is when it will happen. I don't know how you are so certain that it will happen in 8-10 years. I don't know either but it may be coming our way sooner than expected. After I will be looking to buy some cheap real estate.
I'm totally feeling you
my goal is real estate first before diversifying into other things. i want to own a house even if it means a small one in some place cheap (but decent neighborhood). and i am already building towards that. although it may be soon for your financial state but keep it in mind.
If it's your dream to own a house go for it! Once I have enough money to buy an apartement I'll rent it though.
Bitcoin is a safe haven alright for the inflation beaten fiat currencies, but I don't understand what hedging effect you see in precious metal. I think you can simply hold the rest percentage of your fund in USD to cushion drawdown in your crypto holdings.
Don't get me wrong I still have fiat maybe I should have metioned it.
But precious metals are simply the safest investment of all asset classes. Every fond manager has at least 5% in their portfolio if I'm not wrong. Fiat currencies come and go but gold and silver were always there. But like I already said pricious metals = having money but not making money.
It's simply the last egg in the nest when everything goes wrong. I will try to have at least 3 pay checks in precious metals and at most 15%-20% but most likely 15%.
The way the financial system is more complicated than just assuming based on past result there is a basis for the future. Before any financial crisis that is to happen, there is always a boom just like the 2008 you made reference to but to the best of my reading, I have not seen any boom to further solidify your argument of any potential crash happening next year. On the issue of diversification, there is need for adequate understanding of the current phenomena rather than relying on historical figures.
Totally agree with you if someone could predict the market making money would be easy. Your investment strategy can be as good as you want at the end all you can do is an educated guess. It's a matter of luck.
Your strategy is fine, it could be a good idea to add some stocks anyway just in case they do fine for more time than you think but for the most part your strategy seems solid however since you are trying to find a safe haven from the next economic crisis then I think it makes more sense to invest more on precious metals, the percentages that you give seems better suited for someone that is an investor.
Maybe I should focus on crypto now and stack up my precious metals over time. Because now it's unlikely that there will be a crisis soon but as years go by the possiblity will be higher.
