What's Happening with StashAway? (2022 Re-optimization)

Описание: In this video, we talk about what's going on with StashAway since their 2022 re-optimization.

Want to invest with StashAway? Use this link to support this channel:

👉 http://themillennialfinance.com/stash​

In recent times, lots of people have started to see some losses on their StashAway portfolios or see their gains diminish.

This happened to me as well, for the first time since I started my portfolio actually turned negative.

I’ve been constantly DCA’ing every single week so its not even a market timing issue.

As of the time we’re recording this video, i did manage to flip back into positive territory but you can see that my total returns have started to dwindle ever since 2021.

2022 MARKET CONDITIONS

First, we have to acknowledge that markets just aren’t too hot atm
This is not 2020 anymore, and investors are starting to see that investing isn’t so easy.

There will be ups and downs, and right now markets are just in a downtrend.

Despite the recent rebound, the NASDAQ is still 11% off its all time highs while the S&P500 is doing slightly better at 6%.

At the lowest, the S&P500 was down 15% and the QQQ retraced 22% which puts it in bear market territory.

Because of this, all investments are just down in general so it is to be expected that StashAway’s would fare the same.

STASHAWAY THEMATIC PORTFOLIO IN 2022

As far as i know, there aren’t any changes here at all.

The technology enablers are future of consumer tech are down pretty badly for me, but again this is in line with markets as a whole.

Specifically for these 2, tech has just taken a massive hit which includes the likes of ARK invest.

So, nothing wrong with these portfolios at this point and I’ll just continue adding to them.

While doing the research for this video, I also realized that the healthcare portfolio was down pretty bad since healthcare and biotech stocks just aren’t doing too hot at the moment.

The only things that are actually doing good are oil and miner stocks which is because of macroeconomic conditions propping up commodity prices.

STASHAWAY MAIN PORTFOLIO IN 2022

A few weeks back, it seems like StashAway did sort of a stealth re-optimization.

I’m not sure why, but I didn’t get any notifications or emails about this change unlike previous re-optimizations.

Even though it turned out to be a relatively minor change, it would’ve been good to be given a heads up.

I didn’t even know it happened till some of you hit us up on Instagram, so thanks for that.

Going into the app, I also couldn’t find out what exactly the changes were which is again unlike previous times.

So, i spoke to the team and watched through an AMA to get some details. Long story short, the big change is that StashAway got itself out of China tech or the KWEB ETF.

This was a manual decision by them, and it marks the first time that they intervened in the ERAA.

In the AMA, the co-founder of SA Michele admitted that as a client, he was disappointed by the returns which is an honorable thing to do.

So lets talk about this decision...

First of all, I hate to say I told you so but I did bring up my concerns on KWEB right when they made the change.

It was a bold decision to make and I didn’t agree with it. But then again, no one really agrees with each other in the investing world.

Unfortunately for the team, it just didn’t pan out for them.

To make matters worse, the stance of China in the Russia-Ukraine conflict was the final straw.

In just under a month, KWEB fell by nearly 50% and from my understanding, that's right about where StashAway decided to exit their position.

Their reasoning for it was that this whole conflict just brought about too much geopolitical risks and there were a lot of unknown unknowns.

Because of that, they wanted to close this chapter and not have portfolios be so volatile and reliant on what china decides to do.

So I completely agree with this decision, but my only question is why did this decision only come now?

Even prior to the Russia/Ukraine conflict, the geopolitical risk was just way too high in my opinion.

On a more broad scope, they’ve shifted their investing style slightly from being too focused on value stocks because they’ve been value trapped too hard.

I believe that they’re making the right decisions but they’ve just come a bit late at this point.

Hey! Thanks for reading the description. We can't fit everything in here, so make sure to watch the whole video to find out more :)

⌚ Timecodes:

00:00 - What's Happening with StashAway? (2022 Re-optimization)
0:51 - 2022 market conditions
1:42 - StashAway Thematic Portfolios in 2022
3:24 - StashAway Main Portfolios in 2022
9:22 - My opinion on StashAway in 2022

Follow us on Instagram:   / themillennialfinance_  

Tell us in the comments if you liked this video and what other kinds of videos you would like to see.

Disclaimers: https://themillennialfinance.com/disc...

Music: Bensound.com

#TheMillennialFinance