chiangmai
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Post by chiangmai on Apr 7, 2020 0:29:20 GMT 7
We recently had a discussion here about the benefits of planning for different scenarios, I wonder if anyone planned for this one currently - having read the thread now I see they did, well done. I seem to be down 11% overall on last June, add to that another 10% for July/March so circa 21%, WTH, its only numbers. Too be honest CM, no one saw this coming, I have seen currency crashes, housing market crashes and stock market crashes, this is like a perfect storm. For me personally, three things will happen, 1, no trip to the UK this year, the only lucky thing for me is, this happened now, and not after my intented trip back to blighty. 2, no new car this year, cash reserves being used elsewhere. 3, I wont be reinvesting my dividends, they will be used to rebuild my cash reserves. One thing I learned a long time ago was to ask myself, what would happen if i lost this job tomorrow? I cant give any answers, its horses for courses, our circumstances are different (I dont mean you personally). I've probably reached the end of my new car buying days although like you, it seems as though my UK trip this year is a non-starter. The only other impact on me really is to reassess my GBP/THB balance, I was 50/50 but last year I started to burn Baht and will have to think hard about the level I might be prepared to swap Pounds for Baht once again in order to maintain the local currency supply....42 is my magic number.
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AyG
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Post by AyG on Apr 7, 2020 6:58:12 GMT 7
1, no trip to the UK this year, the only lucky thing for me is, this happened now, and not after my intented trip back to blighty. 2, no new car this year, cash reserves being used elsewhere. 3, I wont be reinvesting my dividends, they will be used to rebuild my cash reserves. 1. I wonder whether we'll even be able to make a return visit next year. Thailand may well keep in place awkward restrictions such as recent proof of being virus free and a stupid amount of health insurance. 2. Ditto. Fortunately, after 15 years it's still running well. 3. I won't be reinvesting dividends, but rather living off them. I'll also need to sell my remaining index linked gilts and US TIPS (both of which are in positive territory) to tide me over. I just hope it'll buy me enough time until my equity investments are no longer at a loss.
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chiangmai
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Post by chiangmai on Apr 7, 2020 8:45:18 GMT 7
1, no trip to the UK this year, the only lucky thing for me is, this happened now, and not after my intented trip back to blighty. 2, no new car this year, cash reserves being used elsewhere. 3, I wont be reinvesting my dividends, they will be used to rebuild my cash reserves. 1. I wonder whether we'll even be able to make a return visit next year. Thailand may well keep in place awkward restrictions such as recent proof of being virus free and a stupid amount of health insurance. 2. Ditto. Fortunately, after 15 years it's still running well. 3. I won't be reinvesting dividends, but rather living off them. I'll also need to sell my remaining index linked gilts and US TIPS (both of which are in positive territory) to tide me over. I just hope it'll buy me enough time until my equity investments are no longer at a loss. I'm holding a BKK/LHR for May which BA will let me trade for a voucher that's valid for 12 months, no cash refunds to be had. I agree that even a year from now seems risky.....grrr.
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AyG
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Post by AyG on Apr 7, 2020 8:57:08 GMT 7
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GavinK
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Post by GavinK on Apr 8, 2020 16:34:57 GMT 7
Or just wait for BA to cancel the flight then they have to refund you in the same way you paid within 7 days. You have until 48 hours before wheels up to cancel, so it's a waiting game to see who moves first...
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Post by rgs2001uk on Apr 16, 2020 21:06:42 GMT 7
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chiangmai
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Post by chiangmai on Apr 17, 2020 5:21:27 GMT 7
I'm now less than 6% down on mid-year 2019 which was when I reformulated my portfolio, that's not bad at all by my reckoning and far better than I had imagined. Will I do things differently when it all recovers? Probably not much at all, some tweaking perhaps but the idea of global hold and wait seems to be the one to follow.
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Post by rgs2001uk on Apr 17, 2020 20:48:43 GMT 7
I'm now less than 6% down on mid-year 2019 which was when I reformulated my portfolio, that's not bad at all by my reckoning and far better than I had imagined. Will I do things differently when it all recovers? Probably not much at all, some tweaking perhaps but the idea of global hold and wait seems to be the one to follow. Good man, you may well be up for big mango investor of the year award, alliance trust i am down 16%, stockbroker account down 13%, overall down 14%, its almost as if last years gains never happened. No money lost current values still more than cost price. I concur with Global Its and hold. Where else is there to put my money I ask myself, nothing more than a blip.
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chiangmai
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Post by chiangmai on Apr 18, 2020 8:44:43 GMT 7
Too funny...5% to do with me, 95% to do with you guys, especially Fletch.
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chiangmai
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Post by chiangmai on May 8, 2020 16:03:00 GMT 7
Royal London Sterling Extra Yield, a long-standing favourite and one of the most trusted bond funds......-12%! Pundits tell us this is the end of the 40 year old bond bull market, are they right? I suppose that with so much debt out there, growing at such a rapid rate, they may be right.
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AyG
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Post by AyG on May 8, 2020 16:36:56 GMT 7
one of the most trusted bond funds And yet it invests in highly speculative investments such as Amedeo Air Four Plus (down well over 50% YTD). The quality of its investments is very low. No AAA or AA bonds (at least according to Morningstar), and only 2.7% A. 31.3% of bonds are of such poor quality as not to be rated. I'm not sure who considers it "one of the most trusted bond fund", but it was (and is) fully packed with dubious junk. It was both predictable and inevitable that it would be hit hard in a major downturn. Broadly speaking, the lower the quality of the bonds, the more equity-like the return. Frankly, you'd have been better off with a passive, index fund focssing on quality such as: - iShares Over 15 Years Gilts Index Fund (UK) X Acc (YTD return 17.3%) - Vanguard U.K. Long Duration Gilt Index Fund A GBP Gross Income (YTD return 18.4%)
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chiangmai
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Post by chiangmai on May 9, 2020 13:28:10 GMT 7
"Much loved" by retirees for stable consistent income over more than a decade, by IFA's looking to reduce risk and balance an equities portfolio and by platform providers trying to offer up funds that perform well. I for one have held that fund for eleven years and have benefited from the above average dividends during that time.
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AyG
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Post by AyG on May 9, 2020 13:59:21 GMT 7
^^^ Any source for that quotation? Google didn't help me.
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chiangmai
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Post by chiangmai on May 9, 2020 14:36:16 GMT 7
^^^ Any source for that quotation? Google didn't help me. Que? My words, no quote involved.
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Post by rgs2001uk on May 9, 2020 20:44:39 GMT 7
one of the most trusted bond funds And yet it invests in highly speculative investments such as Amedeo Air Four Plus (down well over 50% YTD). The quality of its investments is very low. No AAA or AA bonds (at least according to Morningstar), and only 2.7% A. 31.3% of bonds are of such poor quality as not to be rated. I'm not sure who considers it "one of the most trusted bond fund", but it was (and is) fully packed with dubious junk. It was both predictable and inevitable that it would be hit hard in a major downturn. Broadly speaking, the lower the quality of the bonds, the more equity-like the return. Frankly, you'd have been better off with a passive, index fund focssing on quality such as: - iShares Over 15 Years Gilts Index Fund (UK) X Acc (YTD return 17.3%) - Vanguard U.K. Long Duration Gilt Index Fund A GBP Gross Income (YTD return 18.4%) I dont invest in bonds, know nothing about them, scroll down for an insight. www.investorschronicle.co.uk/funds-etfs/2020/05/06/don-t-discount-bonds-as-a-source-of-income/
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