Soldato
get a room
Trading the stockmarket (NO Referrals)
- Thread starter mcast123
- Start date
Bitcoin or flip a car right.
Soldato
- Joined
- 24 Sep 2007
- Posts
- 4,800
I'm just interested to know what the total return is you expect from this investment?
Also, as I think interest rates are going to go up, I believe this means the price of gilts will go down, making them a worse investment.
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I just told you the annualised yields. You'd have to pick an individual gilt and do the sums to go deeper. They redeem at £100 whatever happens to the price so even if prices fall your yield is locked in. Its not an either or situation, you can do both stocks and bonds in a portfolio.
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Soldato
- Joined
- 24 Sep 2007
- Posts
- 4,800
Well I should say that I am answering from my own perspective. I wouldn't buy any gilts because I am confident I could beat the return available.
If the OP is looking for a low risk investment with a modest return, for the low risk portion of their portfolio, then OK it's an option. There aren't currently that many other options for such a requirement.
However, unlike the OP I don't think interest rates will be falling in the short to medium term.
As I have already said, I very much doubt they will beat real inflation though.
If the OP is looking for a low risk investment with a modest return, for the low risk portion of their portfolio, then OK it's an option. There aren't currently that many other options for such a requirement.
However, unlike the OP I don't think interest rates will be falling in the short to medium term.
As I have already said, I very much doubt they will beat real inflation though.
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Soldato
Various investing is not for everyone, 200sols has mentioned previously that, we are all guessing here. So a short dated bond held to maturity on a low coupon yield which is CGT exempt is, certain.
Edit i should say: money into short term bonds will be a coin flip in terms of returns. If however you are always in bonds, you will certainly underperform
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Soldato
- Joined
- 24 Sep 2007
- Posts
- 4,800
I'm now wondering if the guy asking the question is trying to drum up business for the gilts market. I know it's under pressure.
Soldato
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Soldato
US inflation was lower than expected today. It hit 3.2%. They’ll have to start reducing their base rate soon otherwise it could overshoot. The markets are responding very positively.
Yeah I assumed it was this and checked my finance calendar.
Looks like they were expecting 3.3 and it was 3.2.
Probably getting near last chance for good stocks hard hit by rates now.
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Soldato
Oh my reit is in the green after months of it being in the red, but it is ex-div day in two days time so we see what happens then.
my royal mail shares are going up, even thou they was fined yesterday for missing deilvery targets. Goes to show that the market has a ZFG approach to the real world.
Yeah it's ridiculous really.
3.3 expected vs 3.2 and it pops.
You can guarantee if it was 3.0 would have been same. But 3.4 and would have been a sea of red.
The expected rate is already priced in. If it over or undershoots expectations then the markets react accordingly. What is ridiculous about it that you struggle to understand?
Repricing, it happens all the time. But don't worry once the fed pivots stocks will go down. Reits etc just got oversold and the bounce seems big.
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A reaction of 10pc on many many stocks due to a difference in rate of 0.1pc seems a little Overblown to me
Soldato
my reit is for the uk properties only... 6.2% up today, no signs of any dips..
EDIT: QQ how does the personal savings allowance work in terms of tax?
someone at work just told me that they have 35k locked away for 3 years at 5.15% that's like 1.8k in interest per year! will they get hit back tax every near on the amount over 1k (I believe they are on the 20% bracket) or will they get hit by tax at the end of the three days? what happens if you move the intreast amount straight into a sipp, am I correct to assume that they will get the 20% top up from the goverment and basically claim some of their tax back?
EDIT: QQ how does the personal savings allowance work in terms of tax?
someone at work just told me that they have 35k locked away for 3 years at 5.15% that's like 1.8k in interest per year! will they get hit back tax every near on the amount over 1k (I believe they are on the 20% bracket) or will they get hit by tax at the end of the three days? what happens if you move the intreast amount straight into a sipp, am I correct to assume that they will get the 20% top up from the goverment and basically claim some of their tax back?
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