Originally Posted by Brains1983

I'd be holding. stocks set new lows, then new highs.

Warren Buffet has a relevant quote on it;

"To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore."

Originally Posted by DXBtoDOH

I have never sold stock. I've been buying or being gifted stock since the 1990s. Despite the 1998 and 2008 crashes I've come out substantially ahead.

Playing the game of buying / selling on a day to day basis is just a form of gambling. Go for it if you get pleasure out of it. But it's no different than going to Vegas or Monte Carlo.

Originally Posted by Brains1983

I'd be holding. stocks set new lows, then new highs.

Originally Posted by DXBtoDOH

I have never sold stock. I've been buying or being gifted stock since the 1990s. Despite the 1998 and 2008 crashes I've come out substantially ahead.

Playing the game of buying / selling on a day to day basis is just a form of gambling. Go for it if you get pleasure out of it. But it's no different than going to Vegas or Monte Carlo.

Originally Posted by UKCityGent

Create a long term portfolio consisting of:


% Vanguard mixture of indices and bonds (US or UK/EM) plus
% of a commodity (e.g Gold) and
% a small amount of cash (gilt or CD) and maybe a rebalance quarterly your pre-defined % (may people use 33% for each category).

.

Originally Posted by Millhouse

I’ve rebalanced which will be effective from 1st as I was very exposed to US equities - something like 95pct of my equities are US based. Shifted half of it into CPI+3pct bonds which makes sense give that equities look toppy and inflation is rising.

As the other half is around 60pct leveraged I’m going to sell that down and buy back in a couple of months to just manage the volitility a bit - will refinance it with euros next time as those rates are going nowhere.

Originally Posted by Bahtatboy

Which ones?

Originally Posted by Millhouse

I knew someone would pick up on that. It's a product that is only offered to staff - I literally have no idea how they do it. It's a 3% guaranteed return above US inflation. As it's tied to my pension, I cannot access over payments unless I leave the bank otherwise I would borrow like crazy and fund it.

Originally Posted by Millhouse

I knew someone would pick up on that. It's a product that is only offered to staff - I literally have no idea how they do it. It's a 3% guaranteed return above US inflation. As it's tied to my pension, I cannot access over payments unless I leave the bank otherwise I would borrow like crazy and fund it.

Originally Posted by Scamp

If inflation is -1% do you get -4% or +2%?

Originally Posted by Millhouse

It's an addition, so 2%... It's called a 3% real return. I've never bothered before and usually invest in higher risk EMs etc. I re-balanced in 2015 to US equities, done well, and will re-balance again in 6 months. It's ok to sometimes sit on the side and watch.

Originally Posted by Scamp

What if inflation was -5%?

I'm not asking to be a dick, I'm curious.
My money (ha! sounds like I've got loads) is all in equities. Need to diversify and sending monthly money to an offshore current account is completely pointless.

Originally Posted by Millhouse

-5 +3 = -2

if inflation was -5, no doubt interest rates on deposits would be something like -8