Investment Strategies: Half-and-Half, Three-Part, and Talmud Methods

Economist Hong Chun-wook advocates the three-asset investment strategy for stable returns and reduced risk in volatile markets.

### The Challenges of the Half-and-Half Investment Strategy
The half-and-half investment strategy has struggled during the country's "**lost decades**" in the 1990s and 2010s, making long-term maintenance difficult. Economist Hong Chun-wook and PD Kim Yoo-ri discuss the strategy's concept, which involves investing **50% in KOSPI 200** and **50% in US SOFR or US 10-year futures**. This approach proved profitable in 2022, as US investments surged while stocks experienced a "**significant decline**".

### The Three-Part Investment Method
The stock market has dropped over **20%**, leading to a currency profit from investing in the US. A half-and-half investment strategy in Korean and US stocks has historically provided a **7% average annual return**, but the Korean market's **lost decades** pose challenges. The three-part investment method (3, 3, 3) offers a solution by diversifying investments in **KOSPI 100**, **S&P 500 TR**, and **U.S. Treasury 10-year futures**.

### A Three-Asset Investment Strategy for Stability
The domestic market has shown a stable performance with returns **over 7%** and losses occurring **only once every ten years**. A three-asset investment strategy, with two dollar-denominated assets, is recommended for **resilience during economic downturns**. The Talmud investment method offers diversification through Korean stocks, U.S. Treasury bonds, and U.S. REIT ETFs, aiming for **stable returns and high dividends**.

### Investment Strategies for Rebalancing and Short-Term Cash Needs
A REIT offering a **5% dividend** can provide cash for rebalancing without selling assets. The Talmud investment method is suggested as an alternative for those hesitant to invest **30% in stocks**. For short-term cash needs, an **80-20 strategy** is recommended, with **80% in KOFI** (an ETF investing in MMFs) and the remaining **20% split between gold and stocks**.

### Investment Strategy for Mitigating Losses
Investing with an **80% interest rate** and a **10% principal** can mitigate losses, while stock price increases offer the potential for **higher returns**. Korean stocks can compensate for currency depreciation, making them a **worthwhile investment**. The speaker recommends the **US 70-year Treasury bond ETF** for its **stability**, while also acknowledging the option of a **30-year bond** for those willing to take on **more risk**.

### Investment Strategies: Navigating Market Challenges with Innovative Approaches
* 📉 The half-and-half investment strategy has its drawbacks, particularly due to the historical **"lost decades"** in the Korean stock market during the 1990s and 2010s, which can hinder **long-term maintenance** of this strategy.
* 👨 ‍🏫 Economist Hong Chun-wook, alongside PD Kim Yoo-ri, discusses various investment strategies, focusing on **asset allocation methods that have proven effective over time**.
* 📊 The half-and-half investment strategy involves allocating 50% to KOSPI 200 and 50% to US SOFR or US 10-year futures, which in 2022 yielded **significant profits from US investments** despite a **30-40% drop in Korean stocks**.
* 💡 By maintaining a consistent 50-50 balance, investors can expect an **average annual return of about 7%** over the past 40 years, although prolonged market stagnation can challenge this approach.
* 🔄 To address these challenges, the three-part investment method is introduced, allocating **33% to KOSPI 100**, **33% to S&P 500 TR**, and **33% to US Treasury 10-year futures**, which has shown **stable performance with returns exceeding 7%** since the 2000s.
* 🏠 For those hesitant about heavy stock investment, the Talmud investment method diversifies portfolios by allocating **33% to Korean stocks**, **33% to US Treasury bonds**, and the remainder to **US REIT ETFs**, providing **stable returns and high dividends**.
* 💰 For short-term investments, the 80-20 strategy recommends holding **80% in KOFI (MMF ETF)** and **20% split between gold and stocks**, minimizing risk while allowing for **potential gains exceeding traditional savings interest rates**.
* 📈 Overall, these investment strategies offer various approaches to **manage risks and maximize returns**, catering to different investor preferences and market conditions.

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*비지니스문의 : hong8706@us-all.co.kr
*강연 문의: https://c11.kr/19l7h
