I’m living in Switzerland for the foreseable future highly unlikely at the moment that I wil be returning the US anytime soon (+10 years perhaps if I do return)
Since 2018, PRIIPS regulations disallow European investors to invest in U.S. Funds. These regulations only allow investment in funds with a Key Investor Document (KID). And U.S. funds and ETFs do not provide this KID
The Financial Services Acct (FinSA) and the Financial Institutions Act (FinIA) are the Swiss equivalents of the MiFID laws from the European Union. These laws will enter into effect in January 2020, but will only affect foreign brokers in 2022. And effectively, they should prevent Swiss investors to invest in U.S. funds.
Further reading on this issue
Platforms like Degiro have already stopped US based ETFs and IB will do the same in 2021/2.
1) I have a US address I can use to open an account with Vanguard/Schwab (which do you reccomend btw). But what are the implications of using this workaround while living in CH for the foreseeable future.
2) If I can start investing from abroad, what is the best way regarding funding the account as I’ll be paid in swiss francs but buying USD etfs?
Thank you so much in advance.
Discussion on the best education to be a better investor
First of all, I know that college will not teach you to be a good investor and that the best investors come from different backgrounds, but if you look at it, there are several patterns.
Carl Icahn, George Soros, Peter Lynch, Peter Thiel, Bill Miller, Jim Rogers, and Guo Guangchang studied philosophy at the university. Icahn says that studying philosophy of the XXI prepares you for acquisitions; Peter Lynch in One Up on Wall Street assures that history and philosophy are the best preparations for investment than mathematics and statistics, and that his courses in logic and philosophy were the ones that helped him the most; Jim Rogers recommends studying history and philosophy in college; Dan Loeb says that to be a good investor you have to be a bit of a philosopher.
David Abrams, Terry Smith, James Anderson, and Nick Train majored in history. Paul Singer and Leon Levy studied psychology. Steinhardt specialized in sociology. Stanley Druckenmiller studied English. Bill Ackman studied Social Sciences. David Einhorn and Stephen Mandel studied Government.
There appears to be a pattern of lean towards the social sciences and the liberal arts. I personally want to pursue asset management professionally, and after reading the advice and suggestions of those I admire, I plan to study philosophy at university.
So my question is: What do you think is the best college preparation for the investment world or what would you have studied to be a better investor?
Are Permabears Delusional?
Especially the ones on Seeking Alpha – I’ve seen guys bearish on AMZN for over a decade (look up Edward J. Roche) and they still won’t admit they’re wrong LOL.
Here’s one from Aug. 22, 2017: “The FANG stocks and others like TSLA have been over-hyped and overbought for a long time. The unwinding of the Fed’s balance sheet announced for this Fall along with rising interest rates are the harbingers of the contraction of the money supply by the central bank. As the money supply contracts, asset prices will contract with it. Since one of the biggest assets is the 20 trillion dollars in the stock market, it is inevitable that we will see a big contraction in stock prices. As this becomes apparent, prices will snowball in a downward direction, perhaps similar to 2008.. GLTA”
FB: Up 107% since that comment
AMZN: Up 280% since that comment
AAPL: Up 271% since that comment
NFLX: Up 219% since that comment
GOOGL: Up 168% since that comment
TSLA: Up 866% since that comment
SPY: Up 89% since that comment
As Jesse Livermore once said, “Markets are never wrong, opinions often are.”