Investor traffic light: how to build a portfolio with $500,000 and what drivers to take into account

This year is expected to be marked by transformations and some significant transitions. After a 2023 in which the recovery of stock prices was consolidated, also supported by the positive performance of sovereign bonds, The coming months pose the challenge to preserve a path of real benefits for the investorsin the middle of a inflationary environment that stands as the main obstacle for profitability.

For that reason, Ambit consulted several investor experts who outlined the “financial traffic light” for February with the most important risk factors and those that could drive that investment. With the diversification portfolio as a spearhead, these are the reds, yellows and greens to see To build a winning portfolio with $500,000:

Financial traffic light

As a first measure, the economist Elena Alonso, recommends in dialogue with this medium, define What type of profile does the investor have? and the time for which the money will be placed. The analyst explains that, given that everything indicates that interest rates in the US they are not going to start going down yetit is extremely important to know time during which the investment will be allowed to mature.

For its part, Maximiliano Donzellihead of research at IOL Invertir Online, recommends keeping an eye on the development of macroeconomic variables of the country and “the effect of omnibus law”, as the most relevant risk factors to take into account when putting together the portfolio.

“Change of perspective on Federal Reserve policy, “which now sees the end of restrictive monetary policy a little further away,” warns Donzelli as a factor that is not a risk for investment, but one that should be taken into account when doing so. Thus, for him, this element falls into the yellow light category, that is, to be taken into account as a warning when investing.

While, for Alonso, it is a determining element that requires diversification, which affects the investor’s need for liquidity and the risk associated with each asset that adds to the portfolio. Likewise, he believes that it is key In what currency will the return be received? of that investment to the bank account.

Regarding the last color of the traffic light, the analysts consulted by this means agree that it will always try to add assets that generate a good return, in hard currency and in a long termwhich will allow the investment to mature.

For Alonso, the first guideline is to maintain always investments in dollars, even in situations where it is not possible to directly access this currency. Furthermore, “it is crucialwait for the previously established investment process (in red) and the time period defined for said investments.

“This implies the need to be patient and allow time for investments to mature, even if they experience a temporary decline in value. The key lies in maintaining discipline and long-term visionallowing the performance of investments to develop in accordance with the established objectives,” concludes Alonso.

Meanwhile, Donzelli outlines that the majority of United States companies presented very solid corporate balance sheets, which generated a positive reaction from the market. There, he sees a green light for investors.

What instruments to add to a portfolio with $500,000

That said, Alonso suggests that a $500,000 portfolio could be composed this way: 60% fixed income, 20% variable income and the other 20% between mutual funds and MEP dollar.

From IOl, the recommended portfolio aims maximize the return on investment in the current context of the country, diversifying risk and considering different investment horizons. And they give the following parameters to build a portfolio according to investor profile:

• Investor profile: moderate, seeking a balance between profitability and risk.
• Investment horizon: medium term (3 to 5 years).

Portfolio composition:

Fixed income instruments (45%)

• FCI Premier Short-term income (5%): to obtain liquidity and low volatility.
• Dollar linked bonus – TV24 (15%): inflation protection and maturity in April 2024.
• Global Bonus 2035 (15%): effective yield in dollars of 20.7% and increasing coupon.
• IRSA Negotiable Obligation – IRCFO 2028 (15%): annual return in dollars of 7% and good debt management by the company.

Variable income instruments (55%)

• Dow Jones- DIA (10%): exposure to value companies and low volatility.
• PepsiCo – PEP (10%): stable company with good return on equity.
• S&P500 – SPY (10%): investment in one of the most important stock indices in the United States.
• Pampa Energy (PAMP) (10%): Strong fundamentals and dollar revenue generation.
• Central Port (CEPU) (15%): Potential for improvement in your income due to rate adjustments:

Finally, it is worth remembering that the selection of instruments is based on the analysis of the current economic context, with high inflation and exchange rate volatility, which is why the aim is to diversify the risk by investing in different instruments and sectors.

This is a suggested portfolio example. The composition of it It may vary depending on the investor’s profile and their specific objectives.