Bond funds still working

MX5huggy

There’s been much debate on the death of bonds as a safe haven, my bond investment returned to profit overnight. Shall cash out my 9p profit now? 

GeoffTF

Vanguard still believes in bonds:

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/bond-investing-myths-avoid-interest-rates-rise

The ETF versions VAGP and VAGS have lower costs but hold fewer bonds. The accumulation version VAGS has a wider market spread.

masonic

And reinvest the proceeds in what?

MX5huggy

masonic said:

And reinvest the proceeds in what?

A large McFlurry, I’m up £1.59. 

masonic

MX5huggy said:

masonic said:

And reinvest the proceeds in what?

A large McFlurry, I’m up £1.59. 

Yes, treat yourself, I think you've earned it.

Alexland

MX5huggy said:

A large McFlurry, I’m up £1.59. 

Smarties ones are best value - have one every week while waiting for our eldest to complete his karate lesson and tapping away on my phone posting here. Maybe I should buy exactly enough of an income fund to pay for that regular night out?

Thrugelmir

Government Bonds will continue to remain a safe haven. One just needs to understand the mechanics and the potential returns. 

GeoffTF

Thrugelmir said:

Government Bonds will continue to remain a safe haven. One just needs to understand the mechanics and the potential returns. 

We know what the returns will be: miserable. Conventional gilts could give a big real return if there is massive deflation. Index linked gilts could give a big nominal return if there is massive inflation. Neither would be a happy outcome. Bond returns will be miserable, but equity returns could be a great deal worse.

Thrugelmir

GeoffTF said:

Thrugelmir said:

Government Bonds will continue to remain a safe haven. One just needs to understand the mechanics and the potential returns. 

We know what the returns will be: miserable. Conventional gilts could give a big real return if there is massive deflation. Index linked gilts could give a big nominal return if there is massive inflation. Neither would be a happy outcome. Bond returns will be miserable, but equity returns could be a great deal worse.

After an exceptional period of returns. Would be no surprise for investing to become dull and boring for a while.