Panorama 21/10/19

thickasabrick

negative yield bonds
"kind of hard to get your mind around why someone would want a negative yield" article from Morningstar.

40% by value of fixed income securities in VLS60 consisting mostly of this index which is about 19.24 %
"Vanguard Global Bond Index Fund GBP Hedged Accumulation"

I don't know enough to delve into whether that will include negative yielding stuff and what effect it will have on performance. Hence sticking with it until I have enough info to make an informed decision.

Doesn't help when I come across a bit of light entertainment in the form of Max Keiser with some interesting discussion on "forced inflation" [KR1424] Keiser Report: Can US Rates Go Negative?

Thrugelmir wrote: »

Your statements appear to contradict themselves. Given the weighting to bonds in VLS60.

Intrigued to know what you consider to be "strange things". When bonds are some of the most transparent instruments one can invest in.

bostonerimus

Malthusian wrote: »

No. Advice is a personalised recommendation. A list of 50 funds is not a recommendation.

I don't know, putting 50 funds on a "Wealth List" feels like a recommendation to me.

bostonerimus

itwasntme001 wrote: »

Why would you want to own any bonds at current yields over a 30 year time horizon?


Your strategy at this point in time seems a bit gung-ho tbh. Record low yields and a stock market that is at its highs with projections for forward returns forecast to be very low. Just does not feel right to be invested like this at this stage.

Just following the historical efficient frontier. Right now is only a fraction of the investment timescale and I have no idea what will happen in the next 30 years...geronimo.

Sailtheworld

Thrugelmir wrote: »

Understanding why you have had the best 10 years in your investing life. Will put the current "rubbish" rates on Government bonds into perspective. Are you banking gains (into cash) or still sitting on paper profits.

I've just ridden the markets and had a few skillful / lucky trades along the way. As gains have been crystallised I've taken the opportunity to increase UK government bonds and world trackers to reduce individual stock risk and overall portfolio risk.

It would be a bit pointless to bank gains into cash because I won't need to spend the cash for at least another 15 years and they wouldn't be covered by government protection schemes so, yes, I'm afraid I'm in the awful position of sitting on substantial paper profits.

Please feel free to organise a whip round.

itwasntme001

bostonerimus wrote: »

Just following the historical efficient frontier. Right now is only a fraction of the investment timescale and I have no idea what will happen in the next 30 years...geronimo.

Efficient frontier is based on historical returns of stocks and bonds. We have had bull markets in both. The efficient frontier 30 years from now is likely to look very different to what we have today.

[Deleted User]

I have sympathy for those who have lost money but it is a reminder why I personally, will not put more than 5% of my portfolio is any one fund.

Zola.

Is it worth a watch or is everything we know covered in these threads?

eskbanker

Zola. wrote: »

Is it worth a watch or is everything we know covered in these threads?

I think it's fair to say that there won't be many surprises to readers of this thread and the main Woodford one, but they did also go after another fund manager, Mark Denning, on conflict of interest grounds, claiming victory at https://www.bbc.co.uk/news/business-50089887

Malthusian

Thrugelmir wrote: »

To the uninformed. I read that list as recommendations if I received a newsletter in the post. Seems as if the hardwork has been done for you to narrow down the options.

I shouldn't have elided the word "personalised" the second time. Apologies for being unclear.

Regulated advice is a personalised recommendation and a list of 50 funds is not a personalised recommendation.

bostonerimus

itwasntme001 wrote: »

Efficient frontier is based on historical returns of stocks and bonds. We have had bull markets in both. The efficient frontier 30 years from now is likely to look very different to what we have today.

There's many bulls and bears in the models. I'm sure the investing landscape will change over the next 30 years, but I'll stick with broad index trackers and won't worry about the future because it's futile.