Why Think Beyond the MSCI World ETF?
Expert Philipp Vorndran from Flossbach von Storch emphasizes in an interview why investors should think beyond the MSCI World ETF. The ETF is heavily focused on the US dollar and US tech stocks, which poses risks in the event of weaknesses in the US economy. Vorndran recommends minimizing risk through diversification, for example, by switching to an equally weighted ETF.
Alternative Investment Strategies
Gold as a Hedge
The rising gold price signals, according to Vorndran, the declining trust in fiat currencies, making gold a sensible hedge against currency risks in the portfolio.
Diversification Across Different Asset Classes
Investors should also consider other asset classes such as cryptocurrencies or alternative investments to be better positioned.
Young Savers Have Good Chances
Young investors benefit from long-term perspectives and can better weigh risks. Their flexibility allows for adaptation to market changes and new trends.
Loss of Trust and Economic Challenges
A profound loss of trust in governmental institutions could, according to Vorndran, destabilize the bond market. Investors should prepare for turbulent times and show resilience through diversification.
Ultimately, Philipp Vorndran advises a diversification that goes beyond the MSCI World ETF to be ready for economic challenges.