Haircut fears

AnotherJoe

islandannie wrote: »

In the present climate I don`t believe anyone Amateur or Professional can predict the markets performance.

The present situation with the volatility of the Brexit effect leads me to think that we may be heading towards a haircut scenario.

You say no one can predict it and in literally the next sentence you predict it !!

islandannie wrote: »

I may be way off in my fears but I`m very tempted to go for the shoebox under the bed option until things settle down..

It`s tempting to keep what I have worked for many years away from the clutches of the incompetent financial authorities.

In what way and whom are you expecting them to "clutch it"?

islandannie wrote: »

I`m sorry if I come across as paranoid,but I planned for my retirement so carefully that I feel cheated to be left with so much uncertainty.

You sound more like someone petrified by Project Fear. Apart from the pound falling, most shares are where they were a couple weeks ago, with the exceptions of property and banks. Many of my shares and funds are higher than they were 2 weeks ago.

There's always uncertainty in the markets even if you dont realise it. If you wanted certainty you should have bought an annuity or moved into cash / bonds / gilts years back (unless you are not a year or two off retirement as you imply but many more years off)
If you keep it in a shoe box you are certainly guaranteed to take a haircut due to inflation, that looks like it will jump to 2 or 3% this year, more the year after. So you you should at least put any money into high interest account(s) though whether thats possible depends where it is now (is it in a S&S ISA, a pension, or what?)

dunstonh

The UK relies on financial services for a great chunk of its revenue. One of the reasons is the stability of the UK. You would see other things hit long before they even consider hitting any financial areas. The most obvious thing to hit is benefits as they are still far too high.

Don't forget that Sterling has just been devalued.

Carrieanne

The OP is fearful of a capital levy (a so-called bail-in), or more correctly: government stealing his/her money by direct confiscation. You, it seems, are imagining a hyperinflation scenario. In 2013 many Cypriot depositors with excess of €100k suffered a 47.5% capital levy on every euro they had above that threshold. If instead they had kept the excess in a shoebox under the bed then those euros would have held the same value as all other euros in existence. The Cypriot government did float the idea of imposing a capital levy on all depositors but soon backed off when people took to the streets. Italy imposed a capital levy on all depositors in the early 1990s.

Governments much prefer to rob their citizens by more stealthy means; inflation is their favourite method. That's why all of them, with the exception of China (hint: there's good reason why they're buying precious metals hand over fist) love fiat money and absolutely hate the real stuff - gold and silver - because they cannot create any physical metal, never mind infinite amounts, with a few keystrokes. The pound has depreciated more versus gold and silver than it has versus the US dollar since June 23rd.

Keep_pedalling

You face a far greater chance of a 100% haircut when some theiving toerag finds your shoebox

Glen_Clark

dunstonh wrote: »

The most obvious thing to hit is benefits as they are still far too high.

I quite agree. I don't mind the unemployed getting REASONABLE benefits, but the Royal Family are just taking the p*ss. :mad:

Glen_Clark

This is why the yield on safe bonds has gone negative.

redmalc

Benefits must be sorted and especially this ridiculous situation with kids having kids and getting accommodation so they can watch tv,smoke and have sex all day with their mates.

Pincher

Don't forget QE.

If Cyrus had its own currency, they could have used QE to dilute the currency.

We can water the gin as much as we want with sterling.

So, no hair cut please, we're British.

atush

Personally, I am NOT worried about a haircut.

If that came to pass here in the UK, our situation would be that I would be laying in canned goods and ammo. And storing water. Putting in a wind turbine etc.

Pincher

atush wrote: »

Personally, I am NOT worried about a haircut.

If that came to pass here in the UK, our situation would be that I would be laying in canned goods and ammo. And storing water. Putting in a wind turbine etc.

http://www.forbes.com/sites/jimdobson/2015/06/12/billionaire-bunkers-exclusive-look-inside-the-worlds-largest-planned-doomsday-escape/#64cca9365afb

http://terravivos.com/secure/vivoseuropaone.htm

Not too sure about the body guards. Obviously the hedge fund managers will invite supermodels to join them, but in the absence of law and order, and money has no meaning, surely the guards would just shoot the residents, and enjoy the ladies and the food?

Still, lots of ideas for the next round of home improvement.