I have been investing directly in stocks for about 3 Years now and I’ve made good returns - my portfolio is up by 60% and i’ve been investing almost every month from 2017. I have recently moved to Dubai and the investment options here are immense.
So far I was allocating about 10% of my investment to foreign assests (mainly Motilal Oswal Nasdaq 100 FoF and some ETFs on Vested - started very recently)
With more investment options available here, I was wondering if i should allocation upto 50% to foreign assets - mainly US stocks and ETFs, debt ETFs etc. Investing in US assets can also protect me from rupee devaluation in the future.
Any thoughts on this? Any advice is much appreciated.
US stock market is massively overvalued and anything that you need protection against is USD which is getting devalued like never before after 2007 financial crisis.
I am short US & Indian market. Long China and UK market (Of course you need to pick great stocks) but they do have political and economical risks.
But there are some real good stocks are beaten down you need to Identify them and Invest individually.
I can name few but this is not recommendation of any sort. You MUST do due diligence before buying and do so only if you are convinced of the risks and rewards.
Intel, Facebook from US market, ASOS from UK, BABA and Tencent from China and SAP from Germany are undervalued as of now. They will be highly volatile in the short term due to short term negative sentiments towards them so you need to stomach volatility but in long term you may make good returns because fundamentally they have resilient business models and cash to sail through near term uncertainty.
Thanks for your advice. Will definitely do DD before investing, although i’m more inclined to invest in ETFs rather than direct stocks