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Post by plaguedbyfoibles on Sept 30, 2022 12:12:08 GMT -5
Intending on opening a Stocks and Shares ISA (effectively the UK equivalent of a Roth IRA used for equity investing, for any Americans out there) with Vanguard, with my first investment being an index fund, pursuing a dollar cost averaging / drip feed strategy.
Given the volatility of sterling right now, should I prioritise a US oriented index fund rather than a FTSE one?
Or should I treat the sterling crisis as short term noise?
My understanding is that the companies listed on the FTSE100 typically have 75% of their earnings denominated in foreign currencies, i.e. not the pound, whereas the companies listed on the FTSE250 index tend to have a 50 - 50 split of income denominated in pound sterling vs income denominated in foreign currencies.
I earn £30,000 per annum at my current employer, have about £60,000 in savings, around £3,500 from my previous workplace pension, and have no debt whatsoever, either short- or long-term (I did not pursue tertiary education).
Am in my late twenties.
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swamp
Community Leader
THEY’RE EATING THE DOGS!!!!!!!
Joined: Dec 19, 2010 16:03:22 GMT -5
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Post by swamp on Sept 30, 2022 12:34:44 GMT -5
Hi, welcome.
Everywhere is getting hammered, so I'm not sure basing your investments is a safe bet.
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djAdvocate
Member Emeritus
only posting when the mood strikes me.
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Post by djAdvocate on Oct 13, 2022 21:28:22 GMT -5
agree with swamp. in fact, if you are fond of the idea of regression to the mean, foreign investments might prove better.
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