Invest before or after the election?

Jonbvn

DiggerUK wrote: »

Because the bond could go belly up at the drop of a hat, and interest rates could go skyward just as you lose your ability to work.

Highly unlikely that the bonds go belly up, given that I have several different flavours. I also have savings accounts paying much more than my mortgage.

As such, it is clear that overpaying a 1%+ mortgage is generally poor advice. If rates rocket or I am unable to work, I can move money from savings/investments into the mortgage at the drop of a hat.

DiggerUK

Jonbvn wrote: »

Highly unlikely that the bonds go belly up......I can move money from savings/investments into the mortgage at the drop of a hat.

Corporate bonds are being pumped at the moment, and have been given a new impetus by the creation of the bond buying arrangements on the London Stock Exchange.

You cannot simply cash in and transfer to your mortgage without being whacked, they are, after all, fixed term bonds. You will get what the market pays. In my opinion these are going to turn into an Icelandic type collapse for many who are sucked in.
The bond funds who pay dividends are only managing about 5% in payments at the moment.

Don't forget it was only as recently as 2007, that banks were in the low risk bracket on the grounds that they would not go belly up.
What short memories some of you have.

Chasing fantasies based on Gordon Gekkos character is just folly of the highest order.

cogito

In my opinion these are going to turn into an Icelandic type collapse for many who are sucked in.

Because ??

Jonbvn

DiggerUK wrote: »

Chasing fantasies based on Gordon Gekkos character is just folly of the highest order.

Furthermore, did I say I was putting everything into bonds??? I will not be lectured by someone as one-eyed as you. This coming from someone who only understands gold, gold, and gold??? Gold only goes up; gold is a no-risk investment. Give me a break!

tt07

Jonbvn - my portfolio is quite diverse so in reality it's probably already robust enough to stand the election and what ever it's results, what this thread has done, which has been good, is tease out some thoughts and that I was looking a bit blinkered and short term at it. The investment is longterm and I don't expect to need the money in the near to medium term.

Diggeruk - I appreaciate the value of shares/bonds/commodities do go up and down, but it depends on your personal goals, but to drive soley to pay off the mortgage is in someways putting all your eggs in one basket and in the same way that shares and bonds can be illiquid and subject to a crash too. I do not think that tying all the equity and wealth into property is a balanced strategy.

I will have a look at my current portfolio diversity and top up those that are more globally and European focused.