Hi LS,
Greece was downgraded this afternoon to junk status.
Interesting to see if the Germans still want to contribute or they force the Greeks out of the Euro(if that is possible).
Portugal also got a downgrade.
Some countries are still lucky.
That said a case could be made to split the Gilt/Cash also in three parts: USD, EURO, YEN.
USD could be exchanged for the CAN$
EURO for the Swiss Franc/ Norway sovereign
YEN for AU$, NZ$ etc (NZ$ is parabolic and in sell territory, lots of Yuans(Renminbi) are escaping China and landing in that part of the world), I would ladder any downunder currency if possible.
The Pound currency is vulnerable now, and if you are not using gold, you need more diversification. In case of a total world blow up...
Also a consideration is to start a virtual ladder with SCV and emerging markets (China breaking down, 10% now this year), maybe use the sequential virtual buy method discussed here lately for volatility capture.
I found a restructuring of the portfolio painful, I still yearn for my old ETF's and stocks. It takes time to be happy again with your new portfolio, so your restructuring effort needs to be as bulletproof as possible.
Kind Regards,K
