Strategic allocation will determine the bulk of returns

The level of risk exposure depends on 1) your investment horizon and 2) your tolerance for short-term losses.

We suggest balancing the weightings of stock markets in the global index with the weighting of their respective economies in global GDP in a ratio of 50% market capitalization to 50% GDP, with a bias in favor of the eurozone to reduce currency risk.

Currency risk is not remunerated over the long term and can generate significant volatility in the short term. Diversification effects and offsetting mechanisms mean that currency risk hedging is not necessary for equities over the long term. This is not true for bonds.

Government bonds 50% Corporate bonds 50% in EUR