Hi there, I’m early 30s Brit. Living abroad in France.
I have £41,000 in a ISA in S&P500 ETF. I’m very seriously cashing out of it this month, given geopolitical events.
Two basic arguments for it.
Cold blooded - I know many were predicting S&P will have a bullish year. (I think Deutchbank predicted 17percent rise). But there is a serious risk of decoupling if anything happens on Greenland. Massive instability and losses. Ofc counter to that is you ride it out. Moreover, if America coughs, your cash ain’t safe anywhere as we all catch a cold, etc.
Emotional take - I know we should not be emotionally investing, but I’m horrified by events on other side of Atlantic and rather sick of us Europeans pouring all our excess cash into an increasingly alien country.
I’m feel a strong urge to cash out of this ETF and put money to use elsewhere, perhaps more into Europe, the UK, Emerging markets or property. Wouldn’t be the worst thing in the world. I’ve made very solid profit on that S&P ETF the last year. Something in the region of 20 percent. Sure, I’d need to pay some cash to the French government on ISA profits as they’re not protected here but heyho. Think of it as cash going towards rearming Europe.
Would be keen to hear others thoughts and reasoning on this.
Context on other investments:
75,000 euros in a French PEA (their version of an ISA) Mainly in European ETF, Euro Defence stock, a solid 20,000 in PEA-eligible China, India ETFs.
26,000 pounds in SIPP in All world ETF (again highly America focused)