Reply With Quotehttps://twitter.com/CNBCJou/status/1...LOkX3MJXQ&s=19Originally Posted by Raffe
Seems to be some value out there in the UK at least
Thursday is like next year for me....
Someone who lies about the little things will lie about the big things too.
https://twitter.com/CNBCJou/status/1...LOkX3MJXQ&s=19
Seems to be some value out there in the UK at least
Silly me.
There is an article about this in the Money Week magazine. The Next CEO was encouraged to convert his company scheme to LDIs and refused as he foresaw the current predicament and it states he wrote to the BoE on the matter in 2017 so they can’t say they weren’t forewarned. No crystal ball required.
Last edited by Montello; 12th October 2022 at 14:09. Reason: Correction on the year
Lol, ok
Sent from my XQ-CQ54 using Tapatalk
Fair enough, interesting article
Sent from my XQ-CQ54 using Tapatalk
Eh?
Point is this was for seen and I don’t really see why “we” should be propping up the market. Looks like they have decided to stop, then we will see …
Last edited by Montello; 12th October 2022 at 14:08.
I’ve been wondering this too.
It seems that governments currently only exist to facilitate the transfer of taxpayers money to large risk-taking financial institutions
I’m not an expert (obviously) nor aware of everything that’s at play here, no doubt some on here are, but that’s how it appears to an outsider like me
I don't pretend to understand all the complexities of the LDIs but I think it all boils down to creating leverage.
Seems it would have probably been OK for the fully funded DB schemes but it appears some underfunded schemes used LDIs to try and close the gap on their underfunding ... i'e they took risk ... when that risk doesn't work out I don't see why anyone else but those in the scheme and their administrators should carry the cost ...
Bitcoin fixes this, apparently. Best hedge against inflation, ever.
Someone who lies about the little things will lie about the big things too.
Of course ... why did they bother with those government and corporate bonds when they could have gone all in on Bitcoin ...fools.
Absolutely. The balance is weighted heavily in favour of those running the institutions- take risk and win, and they can pay out the pensions as agreed, and extract high fees and salaries. If the risk doesn’t pay off, they turn to taxpayers?
I don’t see how pension companies speculating on markets is the best means to save for ones retirement. I’m not sure what the answer is, just that that ain’t it. In my humble view of course.
But I expect it’s more complex than my simplistic view. My accountant advises me every year about adding surplus company funds to a pension, and the tax advantages of it, and every year he gets a polite no
We'll try and save half your salary every month then, get some interest from an ISA or anything safe
or 8% and use a pension to invest it for you
Easy choice really isn't it
Sent from my XQ-CQ54 using Tapatalk
I have had a sceptical view of the pensions industry for years and as such have made my own arrangements.
I'm not happy when the tax payer bails out these institutions ... fair enough the pensioners should be protected(within limits) but the institutions that have let their customers down should take the hit not the tax payer. The pensioners should have to endure some level of "hair cut" IMHO as they chose these people to run their funds for them ... they could have done it themselves.
The people who are running these schemes are facing a margin call and they should have to dip in their own pockets (or those of their shareholders) rather than the BoE go on a buying spree to prop up the market to reduce their margin call ...
Well, if you can afford to make your own arrangements you are in a minority, well done anyway. Most people though require a pension fund to do the heavy lifting
Sent from my XQ-CQ54 using Tapatalk
It’s not about affording to be able to do it it’s a matter of choosing.
Instead of piling contributions at source into a pension scheme I opted to pay tax and receive the income and then invest the money in ISAs and property.
This has some tax disadvantages but it does save fees and give me complete control. Plus I’m not exposed to an institution failing.
If people choose to outsource their retirement investment to an institution that’s fine but if they mess up I don’t see why the government should bail them out.
Tell that to someone on 11 quid an hour
Sent from my XQ-CQ54 using Tapatalk
That’s a different discussion… what we are talking about here is institutions taking risk and getting bailed out by all when it goes wrong.
Not just institutions, several million people living on pensions .
Sent from my XQ-CQ54 using Tapatalk
Hear, Hear...every point.
Indeed, the pensions should have some level of protection, but I’m not seeing the institutions or shareholders taking any of the hit …
Same also applies to the housing market and the government should not intervene with policies to prop up house prices.
Agreed, every time they meddle it just makes matters worse, the Stamp Duty holiday in Covid was meant to make property more affordable, what happened it just fuelled more price inflation.
Messing with markets never seems to work.
The average UK pension fund has been bearish on UK gilts (meaning they were underexposed to the long end of the curve) and their asset/liability ratio looks best in years after the recent rout.
The FT has looked beyond the headlines and has some interesting information.
Full article here.
Someone who lies about the little things will lie about the big things too.
I’m not fully following that article as they have increased their bond holdings yet that is described as bearish?The average UK pension fund has been bearish on UK gilts (meaning they were underexposed to the long end of the curve) and their asset/liability ratio looks best in years after the recent rout.
The FT has looked beyond the headlines and has some interesting information.
Full article here.
It also acknowledges the leverage is too high in an attempt to close the funding gap.
I don’t really care how the manage these schemes as long as the don’t expect us, the BoE, to bail them out.
What's the thought on the FTSE 250 which is down -30% YTD? Too early to go back in? (FTSE 100 is down only 9% YTD).
Seems like there is little currency risk with the FTSE 250, like there is with overseas ETFs and even the multinationals in the FTSE 100. Significant risk if the £ does ever strengthen.
Anyone else feel like a good option to start drip feeding into the FTSE 250 starting in the next couple of months?
They must match liabilities with investments, that's a hard requirements from the regulator. But the have some freedom to implement their market views, and the piece shows how successful they were: liabilities and assets matched during ZIRP, while the have gained a substantial advantage in the run-up of yields. That doesn't change the fact that asset values have dropped, but the BoE interventions weren't aimed at propping up the market value of assets but to keep markets orderly.
And again, there is no reason to believe that the tax payers will be left with costs, so far the BoE sists on a healthy mark-to-market profit on their interventions and the cash flow effect between long term interest income and short term expense is massive.
Someone who lies about the little things will lie about the big things too.
So why have the BoE been buying up these gilts? If everything is rosy why not just step away and leave the market to find its own level?
Everything isn't rosy. Not by a long way.
Sent from my XQ-CQ54 using Tapatalk
The answer is in the post that you quoted.
Someone who lies about the little things will lie about the big things too.
Buying back my Tesla, first time in weeks I am not massively short. Only keeping some OTM put options.
Trade of the year.
Someone who lies about the little things will lie about the big things too.
Why is everyone so buoyant?
Sent from my XQ-CQ54 using Tapatalk
US stocks shot higher and Treasuries rallied on Thursday after October’s closely watched inflation data came in cooler than expected, setting the stage for lower Federal Reserve rate rises. Wall Street’s benchmark S&P 500 added 4.3 per cent in afternoon trading in New York, while the tech-heavy Nasdaq Composite jumped 5.8 per cent. In government bond markets, the yield on the two-year Treasury, which is particularly sensitive to interest rate moves, slipped 0.3 percentage points to 4.32 per cent. The yield on the 10-year Treasury fell 0.28 percentage points to 3.86 per cent. Yields fall when prices rise. The bounce in markets came after the US consumer price index reading for October came in at 7.7 per cent, marking the smallest 12-month increase since January and a sharp drop in the annual rate of inflation of 8.2 per cent in September. Economists had forecast an 8 per cent rise.
FT
Quite honestly, I think it's B/S - whether the basket is 7.7% or 8% more expensive is noise, the Fed has made clear that they will keep raising until inflation moves back into their corridor of comfort. What we have seen today is an explosive relief rally after a couple of days of selling in low-quality names. Don't think this is a new trend, more a dead cat bounce. I still expect lower before we see a bottom.
Someone who lies about the little things will lie about the big things too.
Thanks, appreciate your time
Sent from my XQ-CQ54 using Tapatalk
“Inflation is actually negative already…..”
https://youtu.be/WqyN3D2pDGQ
That will be good news for MSTR, TIGR and OUST. Time to average down, me thinks.
Someone who lies about the little things will lie about the big things too.
I’ve been out of cash for months now. I averaged down as far as possible already. I broke all the rules in the “Investing 101” book. You know that already, Ralf.That will be good news for MSTR, TIGR and OUST. Time to average down, me thinks.
(I know your post wasn’t serious and was meant as a sarcastic poke. I’m all out of humour just now)
I know and it was meant as a gentle reminder that risk management does serve a purpose. Some lessons are really painful, and don't think for a minute I haven't suffered plenty of those (and still continue to do). The most important is that we are making sure we learn from our mistakes and keep improving our process with every single one of them.I’ve been out of cash for months now. I averaged down as far as possible already. I broke all the rules in the “Investing 101” book. You know that already, Ralf.
(I know your post wasn’t serious and was meant as a sarcastic poke. I’m all out of humour just now
Someone who lies about the little things will lie about the big things too.
Morning All
any "tips" on Bonds that can be included in a SIPP
I need more diversification from Equities
Hah TIGR, pffft, I sure timed that one wrong, oh well never mind lesson learned.
Last edited by Passenger; 11th November 2022 at 18:12.
some bond funds:
https://www.ii.co.uk/ii-super-60#s60
Madness everywhere
https://twitter.com/Gareth_Davies09/...wN970SvIQ&s=19
Sent from my XQ-CQ54 using Tapatalk
Decent no risk rates here but depending on your tax status or income, might be subject to the personal savings allowance.
https://www.utbank.co.uk/deposits/personal/
Musk has gone over the edge
Sent from my XQ-CQ54 using Tapatalk
I thought this was fascinating but am not adept enough to figure out if the guy is talking doo doo or not
https://themarket.ch/interview/russe...x-boom-ld.7606
Tesla not having fun right now
Sent from my XQ-CQ54 using Tapatalk
On my work EV salary sacrifice scheme provided by Zenith, the Tesla model 3 is in stock and available for almost immediate delivery.
I don’t know if that says anything.
VW ID range is nearly on a year waiting list.
?
It's up versus yesterday's close.
Someone who lies about the little things will lie about the big things too.
Ah was looking at yesterday
Sent from my XQ-CQ54 using Tapatalk
They might have bulk ordered
Sent from my XQ-CQ54 using Tapatalk
Posting Permissions
