Fortune and Freedom

stuartbanks

Hi,
So recently I signed up for regular emails from ex metals trader and politician, Nigel Farage under the title ‘Fortune and Freedom’ along with his regular contributor Nickolai Hubble, in their weekly discourse, apart from trying to push the appeal of investing in gold, of which I have very little interest in doing, they also discussed the possibility of interest rates rising exponentially and I thought “We’re debt free and own our own home, with money in a savings account earning a pittance at the moment” when I was working (I’m medically retired now) I remember buying my first home, aged 24, back in 1990 at a fixed interest rate of 15% which, at the time, we thought was an absolute steal! At that time if you had 100k in the bank you would make about 10k per annum in interest alone. Work that one out!
So, now at the age of 54, the announcement of possible interest rate rises again I thought would be good news for those in my position. But would it be? Any answers would be gratefully received. 

coyrls

I suppose it makes a difference from all the negative interest rate threads but the risk of interest rates rising exponentially is pretty low on most people's list of worries.  Your sources make such a worry even less credible.

AlanP_2

Inflation would rise dramatically as well so don't think you will be making 6-10% "profit".

As for the source, well personally I'd rather trust my budgie.

bundoran

AlanP_2 said:

Inflation would rise dramatically as well so don't think you will be making 6-10% "profit".

As for the source, well personally I'd rather trust my budgie.

Has your budgie any tips for this afternoon's 1.45 at Haydock?  🤔

garmeg

bundoran said:

AlanP_2 said:

Inflation would rise dramatically as well so don't think you will be making 6-10% "profit".

As for the source, well personally I'd rather trust my budgie.

Has your budgie any tips for this afternoon's 1.45 at Haydock?  🤔

Cleopatra or Peewit the Third?

dunstonh

bundoran said:

AlanP_2 said:

Inflation would rise dramatically as well so don't think you will be making 6-10% "profit".

As for the source, well personally I'd rather trust my budgie.

Has your budgie any tips for this afternoon's 1.45 at Haydock?  🤔

Commanche Falls is highly rated but its a handicap and the ground is heavy.   So, the win rate on top rated is actually not that good on heavy. Ghaith is interesting for win and 4 TBP basis. Multiple winner at 7f and the with it being 6f, the heavy ground may not take its toll as much.     That would be a value choice.    Air Raid hasn't won since 2019 and had some abysmal results since but drops a class and has performed well on softer ground.  Another value option.  Edgewood doesn't really top any rating system but carries good stats across multiple categories. Edgewood is possibly a safer alternative to Commanche Falls.
It's a very open race and you could make a case for half the field.   In pure money-making terms, probably a race to avoid as its lucky dip across 7 or 8 of them.

princeofpounds

Nominal interest rates alone don't mean a great deal. A 10% interest rate in the bank, if those pounds are worth 10% less each year due to inflation, doesn't do anything more for you than a 0% interest rate. 

Furthermore - as to who benefits and who loses from a rate rise - it's complicated. From a cashflow perspective, it would help you; your cash savings would bring more interest income. From a net worth perspective, it would probably hurt you; the value of your house would fall. But given that you are presumably never going to crystallise the value of your house, that's not very important for you in practical terms. 

dunstonh

dunstonh said:

bundoran said:

AlanP_2 said:

Inflation would rise dramatically as well so don't think you will be making 6-10% "profit".

As for the source, well personally I'd rather trust my budgie.

Has your budgie any tips for this afternoon's 1.45 at Haydock?  🤔

Commanche Falls is highly rated but its a handicap and the ground is heavy.   So, the win rate on top rated is actually not that good on heavy. Ghaith is interesting for win and 4 TBP basis. Multiple winner at 7f and the with it being 6f, the heavy ground may not take its toll as much.     That would be a value choice.    Air Raid hasn't won since 2019 and had some abysmal results since but drops a class and has performed well on softer ground.  Another value option.  Edgewood doesn't really top any rating system but carries good stats across multiple categories. Edgewood is possibly a safer alternative to Commanche Falls.
It's a very open race and you could make a case for half the field.   In pure money-making terms, probably a race to avoid as its lucky dip across 7 or 8 of them.

And it was Air Raid who won at a nice 16/1.

Albermarle

Flat racing is  like long term investing - a bit boring !
 Give me the jumpers anyday . Will miss Winter Mondays at Plumpton due to this damn virus .

dunstonh

Albermarle said:

Flat racing is  like long term investing - a bit boring !
 Give me the jumpers anyday . Will miss Winter Mondays at Plumpton due to this damn virus .

I'm missing my Newmarket visits.   One of least tactical tracks. Although still a nice day out.   More money to be made on the non-handicap jumps though.

Ciprico

princeofpounds said:

Nominal interest rates alone don't mean a great deal. A 10% interest rate in the bank, if those pounds are worth 10% less each year due to inflation, doesn't do anything more for you than a 0% interest rate. 

Furthermore - as to who benefits and who loses from a rate rise - it's complicated. From a cashflow perspective, it would help you; your cash savings would bring more interest income. From a net worth perspective, it would probably hurt you; the value of your house would fall. But given that you are presumably never going to crystallise the value of your house, that's not very important for you in practical terms. 

Depending on out-goings (what you spend) and  in-comings (interest), if interest rates and inflation go up in equal measures, to a degree they cancel each other out, but it is not beyond the realms of possibility you would start paying tax on the higher interest earnt, so you would be poorer .
Putting money on a horse is probably a more efficient way to get poorer...