My uncle has advised me to sell all my shares and reinvest in bonds/gilts

bostonerimus

Your uncle is being foolish. Selling shares and going into bonds/glits right now has a high probability of producing capital losses over the next 5 to 10 years as interest rates are almost certain to rise. Of course I could be just a wrong in that analysis as your uncle might be in his. So play the percentages and keep yourself diversified across asset classes....you are being sensible with your VLSxx investment.

Lois_and_CK

No, he's not a financial advisor - he's an engineer

Thanks for all your posts. I feel very reassured now in that my instinct when he said this was that I should stay with what I've got. Maybe I should trust my own fount of knowledge

Thrugelmir

Lois_and_CK wrote: »

Maybe I should trust my own fount of knowledge

I would suggest not. Instead listen to a variety of views , opinions and analysis. As the wind can change direction at any time. The more informed you are, the better you'll weather the storm which it finally arrives.

Flobberchops

Stay diversified. If a crash comes, buy the dip. Don't worry, be happy.

BLB53

Maybe I should trust my own fount of knowledge

Listen to others but then develop your own strategy and trust your judgment.

Glen_Clark

jimjames wrote: »

From my understanding one of the best value markets is the UK at the moment.

I think thats because the market is anticipating severe damage from Brexit?
The market may be right - or wrong in which case the UK market is great value..
Since I don't know whether they are right or wrong, I just diversify (World Tracker mainly) and chill

John_Jones

Lois_and_CK wrote: »

He has predicted an imminent stock market crash. His prediction is based on the LIBOR rating.

Do you know what he means by LIBOR rating?

Did you buy any BTPs? If not, they are an awful lot cheaper tonight...

bowlhead99

John_Jones wrote: »

Do you know what he means by LIBOR rating?

And does he?!

Did you buy any BTPs? If not, they are an awful lot cheaper tonight...

Yes, the Italian political turmoil isn't helping Italian government bonds command a high price, especially if a new election essentially becomes a referendum on keeping the Euro.

By contrast, if you had recently bought some US or German treasuries you'd have seen them go up a bit yesterday (despite the expectation of about 4 US rate rises this year) just on the grounds of their "safe haven" status as people dive out of Italian and Spanish paper into the debt from more robust economies.

[Deleted User]

libor going up means that there is increasing uncertainty in the financial markets. It has gone up since 3 months ago so OP`s dad is speaking sense tbh but really people should not be relying on other people`s opinions, that would make the follower into simply `a sheep`

Glen_Clark

Sounds like one of those cases where a little knowlege can be a bad thing.
Understands Libor but mising other factors.
Reminds me of people who come into the garage who have learned that increasing tyre pressures reduces fuel consumption, so over inflate their tyres,
But to take that to its logical conclusion we would all be driving around on solid steel wheels that would shake us and our vehicles to bits,
You need to take other factors into account.