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Vanguard Life Strategy
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Well I have been looking all night for answers and most have been 50/50 some saying It won't effect it much and some saying it will.
What was interesting is that I come across a video that showed the correlation between a rise in interest rates and the stock market. As stocks started to rise, interest rates tend to follow and also when interest rates fell, as did stocks but then started to recover again.
So personally for me, I am not worried should interest rates rise. It was also mentioned, that interest rates below 5% did not really have any effect on the market but anything above, it started to fall.
I probably haven't explained this very well, but I tried
:j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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What do you think will happen to the VLS fund price if interest rates rise GadgetMind?
Of course in your own opinion my friend!!!
Am I wrong in my thinking?0 -
All apart from the 100% VLS fund?
Can't make up my mind which one to go for?
20% = Not enough exposure to Equities
40% = Possibility
60% = Possibility
80% = Might ( I know everyone hates the word might) be to much equity exposure
100% = Too much equity exposure
I have been researching and thinking what to do for sometime now?
Either way it will need sorting before end of March as going in this years S & S ISA with H & L?
Thanks0 -
What do you think will happen to the VLS fund price if interest rates rise GadgetMind?
Interest rates will rise at some point but it will be years before there is anything other than a token rise and perhaps decades before we get back to normal. Looking at bond yield curves shows what the market expects.
Anything other than exceptionally high interest rates doesn't trouble equities too much. Fixed interest OTOH does suffer when rates rise but how much is down to the duration of the debt and the yield.
Lots of smart people are using complex software to try and model the value (to them) of various kinds of debt given various future scenarios and their consensus is reflected in the current prices. The LS trackers buy a spectrum of this debt and trust the market that the price is right!
I finally decided that the gilt market has currently been distorted well away from being efficient so added active fixed interest alongside my trackers. Only time will tell ...I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
There has been some great advice since this has opened, if you haven't already done so, you should go through it.
I went for the 80 with the intention of having it until I am at least 41, 23 now. I will have a full military pension and hopefully be on the property market with not much of a mortgage left to pay. Looking back, if I was starting out again, I would have gone for the 100.
Who knows if this will happen, I like to be positive!:j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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For what it's worth (debatably not much!) this is the strategic bond fund that I've tended to use as my default.
http://citywire.co.uk/money/pound-faces-quiet-crash-warns-cowley/a658769
As I say, only time will tell, but this fund has always chugged away, never shooting out the lights, and never dropping like a stone. This is how I like my fixed interest allocation!
In more ordinary times for gilts, I'd just use the LS 80% and be done with it.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Why is it so hard for me to pick one of the VLS funds?
Keep researching / looking at them and come out with different answer each time?
20% = No
40% = Maybe
60% = Maybe
80% = Maybe
100% = No
So I have three choices?
Ohh it's a tough one!!!
Thanks :-)0 -
It's all down to your investment timescale and how likely you are to wig out if/when the value of your holding suddenly drops by x%.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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