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23rd April 2021, 14:22 | #21 | |
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Every generation blames the one before |
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24th April 2021, 06:59 | #22 |
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My father is almost 100. Each generation should act responsibly.
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24th April 2021, 08:06 | #23 |
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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. |
27th April 2021, 20:12 | #24 | |
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Kev Last edited by torque2me; 27th April 2021 at 20:16.. Reason: spelling |
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27th April 2021, 20:13 | #25 |
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28th April 2021, 05:52 | #26 | |
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28th April 2021, 06:14 | #27 |
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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! Last edited by Darcydog; 28th April 2021 at 06:20.. Reason: Typo |
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