We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Thoughts on Bonds versus Stocks & Shares
Options
Comments
-
noclaf said:incus432 said:. I also now hold short dated bond funds IGLS and GLT5 (0-5 year and 1-5 yr respectively) as well as some longer term VGOV (9.3 yr). for money I might need to access.No very well thought out reason but I watned short term UK gilt funds - these seem to perform slightly differently to each other and are cheap so I'm hedging my bets.ABGP appears to be longer effective duration so is more volatile. It is mostly non UK with big chunks of Chinese bonds which I do not want
1 -
Interestingly, Bloomberg notes of UK Gov. 15 year bonds: "The £8.5 billion ($10.4 billion) offering of debt due in 2040 drew excess of £119 billion of demand on Tuesday, beating the previous record for the securities originally sold in September."
Bonds very popular at the moment, seemingly.0 -
incus432 said:It is mostly non UK with big chinks of Chinese bonds which I do not want4
-
ha! corrected
1 -
aldershot said:Further to my post above regarding concentration risk in global equity funds, here are a couple of new observations curtesy of Charlie Bilello who writes a weekly chart blog (US centric but worth following).....Apple, Nvidia, and Microsoft now each have a higher weighting in the global equity market than every country outside the US except for Japan.
The 18.6% combined weighting of the Magnificent Seven in the global equity market is more than the entire weighting of Japan, the UK, China, Canada and India … combined
I think global equity funds that follow the MSCI or FTSE global are carrying higher and higher risk that is not really being discussed. It makes me think of "safe" bond funds when interest rates were near zero. They weren't safe at all and lost around 30% in 2022 when rates returned to more normal levels. They're much safer now (at current prices and yields) and should have a place in your portfolio (just my opinion of course!).0 -
Interesting chart, but I have two observations:
1) tiny stock markets are bound to have higher concentration into a few leading companies. Saudi is a complete outlier as it only does one thing.
2) if the top 3 companies in Cyprus or Romania lose half their value, I lose 0.01% (or something) of my portfolio and the rest of the world won't care. If the top 3 companies in the US lose half their value, I lose 5% of my portfolio immediately and even worse, they'll certainly drag the rest of the market and the world with them.1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards