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SIPP investment choices - VWRL, VRWP or something else?

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  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 17 December 2021 at 1:03AM
    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.
  • 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
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    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.

  • Alexland 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
    Alexland Posts: 10,183 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 17 December 2021 at 12:54PM
    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.
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