Key insights
- The author expresses concern about potential US market drawdown given a high equity exposure (VOO, MTUM) and seeks diversification strategies. Suggestions include increasing VXUS (international equities) and AGG (bonds) allocation, and considering gold. The post reflects individual investor sentiment and risk aversion, but has limited direct market impact.
Hiya.
Here is how I am investing:
401k - not maxing out. But still putting a decent sum to optimise for pretax
The rest of my investment is in brokerage. Every month, I put money in these 4.
voo - 50%
vxus - 20%
mtum - 20% (momentum index)
agg - 10% (ishares bond etf)
I currently have more than 90% exposure to equities. And since there is a high correlation between my 401k, voo and mtum, I feel like I am not diversified enough.
How would you hedge against the drawdown of the US market, which I fear is imminent, would you increase the percentage in vxus and agg, and maybe invest in gold as well? Is gold a good diversification strategy?