My portfolio is listed below and is in multiple buckets. I have also put various key stock market indices to benchmark future performance.

I do not expect to outperform a number of the markets as my objective is generate a compounded annual return above inflation with a 4% annual draw down on a 3 year cumulative basis.

Unlike my previous globalstockinvestingtoday site, I am not putting in my original purchase price as some of the stocks in the portfolio have been held for quite some time but rather the price of the stock as of 11th February 2020 and how much the stock has become as as part of the net asset value of the portfolio.

As mentioned before, my advice would be to dollar cost average into the US’s S&P 500 index ETF such as Vanguard’s ETF over three years ; tie such capital up for a further similar time frame thereby mitigating somewhat the risk of permanent capital loss.

The S&P 500 has proven over history to yield better returns than actively managed equity funds when converted to US dollars.

With respect to the key risks of putting one’s money in stock markets in emerging markets are 1) lack of liquidity of both the respective markets and currencies which can rapidly lead to material capital loss if unable to be held for a considerable period of time and 2) lack of proper corporate governance both within the institutions overseeing companies as well as within the companies themselves, offering little protection to shareholders.

If one wishes to have exposure to the economic growth of such emerging economies, one really has to look at the management of the companies and the track record that they have demonstrated with respect to corporate governance, how strong their economic moat is in their industry, how disciplined they are with respect to their balance sheet and with capital allocation. A tracker fund of the local market would mitigate risk of permanent capital loss from fraudulent or reckless companies.

Investing purely in mature economies such as those in UK and Europe will be handicapped by stagnant/slow growth and structural issues which will take many years to resolve.