SIPP investment choices - VWRL, VRWP or something else?

jamesd

jamesd said:

With the Fed having fairly recently changed its targeting policy to be more flexible on inflation and the BoE having similar flexibility I'm not personally convinced that substantially higher rates are going to be caused by the current temporary bit of inflation, but longer term I do think that QE and low interest rates are going to e gradually undone. Maybe we'll see a symbolic 0.1% increase in Bank Rate at the December BoE meeting and perhaps something similar from the Fed? (shrug They both know the causes are transitory so I doubt either will act strongly.

And the December result: a 0.15% increase, taking Bank Rate to 0.25%. But no change to the Bank's buying of government and corporate bonds.

More in the future if it turns out that the inflation we're seeing at the moment isn't temporary or if it looks safe to do more reversal of fiscal easing methods.

ex-pat_scot

jamesd said:

jamesd said:

With the Fed having fairly recently changed its targeting policy to be more flexible on inflation and the BoE having similar flexibility I'm not personally convinced that substantially higher rates are going to be caused by the current temporary bit of inflation, but longer term I do think that QE and low interest rates are going to e gradually undone. Maybe we'll see a symbolic 0.1% increase in Bank Rate at the December BoE meeting and perhaps something similar from the Fed? (shrug They both know the causes are transitory so I doubt either will act strongly.

And the December result: a 0.15% increase, taking Bank Rate to 0.25%. But no change to the Bank's buying of government and corporate bonds.

More in the future if it turns out that the inflation we're seeing at the moment isn't temporary or if it looks safe to do more reversal of fiscal easing methods.

Good call! 
I don't think there will be any further increases in the immediate future - I expect that they will wait and see how temporary the current spike in inflation will be.

Alexland

ex-pat_scot said:

I don't think there will be any further increases in the immediate future - I expect that they will wait and see how temporary the current spike in inflation will be.

The fed have already given direction to the markets on the next couple of years of US interest rate hikes and the UK will be under some pressure to follow to avoid currency devaluation.

ex-pat_scot

Alexland said:

ex-pat_scot said:

I don't think there will be any further increases in the immediate future - I expect that they will wait and see how temporary the current spike in inflation will be.

The fed have already given direction to the markets on the next couple of years of US interest rate hikes and the UK will be under some pressure to follow to avoid currency devaluation.

Thanks - this "forward guidance" on future direction has largely been priced into the market, so shouldn't really impact prices when it happens.

Alexland

ex-pat_scot said:

Thanks - this "forward guidance" on future direction has largely been priced into the market, so shouldn't really impact prices when it happens.

Yes global stock markets even went up as they confirmed that it will be gentle enough that it's nothing to worry about. Provided you have a fairly grounded expectation on real growth going forward it should be fine.