Price increases

[Darcydog]

Originally Posted by mbev51

I’m comfortable and have enough to last me out. It’s the young people I feel sorry for, they have to try and make sense of this mess.

They will manage. Ponder those coming of age 100 years ago - WW1 - the Spanish Flu Pandemic and WW2 to look forward too!

Every generation blames the one before

[mbev51]

My father is almost 100. Each generation should act responsibly.

[Darcydog]

Originally Posted by mbev51

My father is almost 100. Each generation should act responsibly.

I think they do as a whole - but far easier to use the certainty of hindsight to point the finger.

From where I stand now - I don’t see the Debt caused by Covid to be anything like the issue of the debt caused by the Labour Governments of Wilson and Callaghan for example. That debt was due to incompetence - today’s debt is incurred fighting a pandemic - a significant cost was keeping people paid money whilst not actually working.

Back in the 70’s we had BoE base rates at about 11% and inflation hitting 20%. Only when the IMF stepped in did we manage to get things back under control.

Today BoE base rate is 0.1% and the big issue we face is not inflation as you suggest but Deflation or Disinflation.

We have already issued a Gilt with a negative return and it was oversubscribed!!

So why would an invested lend money to the Government knowing they will get back less than they put in?

It was a three year gilt for £3.8billion.

The issue is that prices of certain goods and commodities are falling. This is not unusual and working with negative returns and funding for them is quite common.

So if I wanted to by a new car in three years time and knew it would be cheaper then than now by perhaps 5% then “investing” money where a loss of 1% is certain could still gain me 4%.

The big issue is if this spills out into goods for sale on the High Street. The economy suffers if people don’t buy “stuff” if they think it’s going to be cheaper in the future.

Because our economy is so much stronger, the government can quite happily borrow £billions because the payback sum is NOT rocketing away - and could in fact, be smaller! - plus the fact that the U.K. is in charge of its borrowing - it could simply print more via QE - the debt is not with a third party such as the IMF.

[torque2me]

Originally Posted by SCP440

Its not only building materials, a friend has a new Van on order that was supposed to be delivered several months ago. He has now been told it will be £1500 approx. more when it arrives in another few weeks. He said he would not pay that as they had agreed on a price but they are not worried as there is a shortage of new vans.

They will become much more worried if you go for break of contract (especially if it fits the Small Claims Court criteria). A company cannot represent itself in court and must be appoint a barrister @ £1,000 - £5,000 per day or part off. You could also report them to the local Trading Standards.

Kev

[torque2me]

Originally Posted by Georgies Dad

I agree things have gone up,but so has my pension

We are paying for Brexit and the Pandemic.

I still have never been so well off

My pension fund has decreased...….

Kev

[Darcydog]

Originally Posted by torque2me

They will become much more worried if you go for break of contract (especially if it fits the Small Claims Court criteria). A company cannot represent itself in court and must be appoint a barrister @ £1,000 - £5,000 per day or part off. You could also report them to the local Trading Standards.

Kev

Good advice.

[Darcydog]

Originally Posted by torque2me

My pension fund has decreased...….

Kev

Fund performance is still patchy but mine very much shows a narrow “V” shaped recovery with last 6 month performance well ahead of the same period this time last year. So much so that consolidating the gains and when to do it - is the main item on my agenda.

I do invest more aggressively than most for a variety of reasons - and a certainty do not follow the rule of thumb that says whatever your age is, that should be the percentage you hold in safe, secure, investments. I am quite the opposite.

I tend to use Trustnet as a good info source on the funds. One fund I am VERY pleased with is Aegon’s Technology fund. As of this morning it has achieved 60.7% over the last year, 155.1% over past 3years and 371.9% over the past 5 years. I have to say I am happy with that.

It has benefited from the Covid situation as its two largest holdings are Apple (16.52%) and Microsoft (15.27%) - Visa, PayPal and Adobe are in there as well - as well as Taiwan Semiconductor Manufacturing. So a good spread if a bit over subscribed in Apple and Microsoft - but they are rebalancing this after the strong performance of these two of late.

Even a mundane “boring” Distribution Fund shows the marked “V” shaped recovery - Jupiter Distribution Fund was hit hard by Covid but now shows 10.8% over one year, 12.1% over 3years and 21.4% over 5Years - so you might find yourself pleasantly surprised if you go through your funds and look at the Trustnet data (or FT or Morning Star - it’s only a personal preference for Trustnet) - I wish I could post links - but if you Google the fund name and add Trustnet it takes you to it.

I hope you are as happy as I am with what you find!