An estimated €37 trillion is sitting largely idle across the European Union. Why aren't Europeans investing more, and what would it take to unlock that capital? #TheBigQuestion
To me the problem is ideological. If you buy the a world ETF - like WEBG - 60% of the stocks in it are American. You read all the news about those companies being shitty and yet to get the best return on your income you need to invest in them.
There’s also CEUG (EU stocks without “unsustainable” companies, from European company Amundi) but then you balance with other regions and it’s “wrong” to have 100% home bias.
I remember once a night train startup mailed me that they are issuing bonds to help fund opening new connections. That was cool, as opposed to investing in Nvidia. Then again, investing with your heart is not the most minmaxed, so it’s wrong.
An investment strategy is “wrong”, if it just gives lower returns or higher risk. For example, more diversification gives you equivalent returns for less risk, thus not diversifying is wrong.
An investment strategy is “different”, if it lowers financial returns in return for something else. For example, you want to intentionally lower risk or not invest in evil companies. There is nothing wrong about that. You can invest with your heart, just be aware of the lower returns.
Donations can be considered a “different” investment where the financial returns are zero. In return you “save the world” a little.
31% of webn is tech. It’s a good ride so far but too sketchy to me. There is stoxx 600 which is still gives good ROI, European and has only 8% of tech.
To me the problem is ideological. If you buy the a world ETF - like WEBG - 60% of the stocks in it are American. You read all the news about those companies being shitty and yet to get the best return on your income you need to invest in them.
There’s also CEUG (EU stocks without “unsustainable” companies, from European company Amundi) but then you balance with other regions and it’s “wrong” to have 100% home bias.
I remember once a night train startup mailed me that they are issuing bonds to help fund opening new connections. That was cool, as opposed to investing in Nvidia. Then again, investing with your heart is not the most minmaxed, so it’s wrong.
There is “wrong” and there is “different”.
An investment strategy is “wrong”, if it just gives lower returns or higher risk. For example, more diversification gives you equivalent returns for less risk, thus not diversifying is wrong.
An investment strategy is “different”, if it lowers financial returns in return for something else. For example, you want to intentionally lower risk or not invest in evil companies. There is nothing wrong about that. You can invest with your heart, just be aware of the lower returns.
Donations can be considered a “different” investment where the financial returns are zero. In return you “save the world” a little.
31% of webn is tech. It’s a good ride so far but too sketchy to me. There is stoxx 600 which is still gives good ROI, European and has only 8% of tech.