I have a fair amount of money in USD stocks and ISAs. Just about to sell most of them. Although the values have gone down, with the GBP/USD ROE, I've actually made a profit in sterling. Time to take some of this currency profit and maybe reinvest when markets are more stable.
Good decision or bad?
Never a bad thing to take profits. Whether now is the time to cash in & sit on the sidelines no-one can answer.
He's just made a bit more, assuming he didn't sell last week.
I have a fair amount of money in USD stocks and ISAs. Just about to sell most of them. Although the values have gone down, with the GBP/USD ROE, I've actually made a profit in sterling. Time to take some of this currency profit and maybe reinvest when markets are more stable.
Good decision or bad?
The big question is what would you do with the money in the meantime. Keep in cash? invest in UK or Europe equities? And when would you go back in. Always a danger of missing a stock market pickup if you're out of the market. I personally never try and time markets but certainly a case here.
I have a fair amount of money in USD stocks and ISAs. Just about to sell most of them. Although the values have gone down, with the GBP/USD ROE, I've actually made a profit in sterling. Time to take some of this currency profit and maybe reinvest when markets are more stable.
Good decision or bad?
The big question is what would you do with the money in the meantime. Keep in cash? invest in UK or Europe equities? And when would you go back in. Always a danger of missing a stock market pickup if you're out of the market. I personally never try and time markets but certainly a case here.
Very true.
I'm putting into the GBP section of my account, ready to invest in GBP equities when the time is right. Not just yet, unless anyone has some great tips!
I have a fair amount of money in USD stocks and ISAs. Just about to sell most of them. Although the values have gone down, with the GBP/USD ROE, I've actually made a profit in sterling. Time to take some of this currency profit and maybe reinvest when markets are more stable.
Good decision or bad?
The big question is what would you do with the money in the meantime. Keep in cash? invest in UK or Europe equities? And when would you go back in. Always a danger of missing a stock market pickup if you're out of the market. I personally never try and time markets but certainly a case here.
Very true.
I'm putting into the GBP section of my account, ready to invest in GBP equities when the time is right. Not just yet, unless anyone has some great tips!
Actually totally changed my mind when I went into the account and for now it'll go into a UK savings account when it arrives. Just done the transaction. I have enough GBP in equity markets already!
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
That's not a bad performance all things considered!
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
Mine's down 12.5%. It peaked at down 7% on the day I had my Zoom review. You couldn't script it.
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
That's not a bad performance all things considered!
Yeah, I know. There will always be times like this over a long-term investment. It’s just timing that means it’s happened at the start for me (and CE too). Fees aren’t exactly cheap and I’ve a few questions about recent strategy changes - 15 out of 20 investments (includes 24% in various bonds across globe) down, but I’ve had one change to a UK equity fund recommendation while no commentary on why others performing worse should stay. Will see what they say tomorrow.
Not quite in the realms of Black Wednesday (which spookily enough is just 10 days past the 30th anniversary) but the panic in the markets over Sterling has had major repercussions for those looking for a mortgage/remortgage. 2 big lenders today (Halifax and Virgin) have pulled ALL their products to new customers due to re-pricing issues and have said that they hope to be able to offer new products later in the week.
Heard it said that the BOE might have to raise the base rate to 3.75% this week and see it go to 5%+ by the end of the year. Strange that the Governor of the BOE said earlier that a special sitting of the Rate Committee that was going to meet today was cancelled & the next interest rate review is not scheduled until November.
Somehow I think the markets will have other ideas & may well force their hand sooner rather than later.
Not quite in the realms of Black Wednesday (which spookily enough is just 10 days past the 30th anniversary) but the panic in the markets over Sterling has had major repercussions for those looking for a mortgage/remortgage. 2 big lenders today (Halifax and Virgin) have pulled ALL their products to new customers due to re-pricing issues and have said that they hope to be able to offer new products later in the week.
Heard it said that the BOE might have to raise the base rate to 3.75% this week and see it go to 5%+ by the end of the year. Strange that the Governor of the BOE said earlier that a special sitting of the Rate Committee that was going to meet today was cancelled & the next interest rate review is not scheduled until November.
Somehow I think the markets will have other ideas & may well force their hand sooner rather than later.
Agree, I can't seem them holding out for a month.
The markets seem to be pricing in at least 6% for next year, I wouldn't be surprised to see an emergency meeting and rates go to the 3.5% area and then up again in November. How high will in part depend on how the previous increases go.
Will be interesting to see how savings rates move if there are substantial base rate increases.
My pension is holding up so far, mostly due to a large US proportion, but some funds still look a bit painful!
Not quite in the realms of Black Wednesday (which spookily enough is just 10 days past the 30th anniversary) but the panic in the markets over Sterling has had major repercussions for those looking for a mortgage/remortgage. 2 big lenders today (Halifax and Virgin) have pulled ALL their products to new customers due to re-pricing issues and have said that they hope to be able to offer new products later in the week.
Heard it said that the BOE might have to raise the base rate to 3.75% this week and see it go to 5%+ by the end of the year. Strange that the Governor of the BOE said earlier that a special sitting of the Rate Committee that was going to meet today was cancelled & the next interest rate review is not scheduled until November.
Somehow I think the markets will have other ideas & may well force their hand sooner rather than later.
Agree, I can't seem them holding out for a month.
The markets seem to be pricing in at least 6% for next year, I wouldn't be surprised to see an emergency meeting and rates go to the 3.5% area and then up again in November. How high will in part depend on how the previous increases go.
Will be interesting to see how savings rates move if there are substantial base rate increases.
My pension is holding up so far, mostly due to a large US proportion, but some funds still look a bit painful!
Those mortgage lenders pulling lending and the 6% rates are because the PRA issued a set of new stress tests around lunchtime yesterday for the banger banks with scenarios like 30% or so fall in residential property prices, 40% or so on commercial property, base rate around 6% iI think and a few other scenarios. The PRA didn’t say these scenarios will happen, only that banks had to stress their books. I’m surprised they all didn’t pull their lending just to make sure they could cope with the test scenarios.
Not quite in the realms of Black Wednesday (which spookily enough is just 10 days past the 30th anniversary) but the panic in the markets over Sterling has had major repercussions for those looking for a mortgage/remortgage. 2 big lenders today (Halifax and Virgin) have pulled ALL their products to new customers due to re-pricing issues and have said that they hope to be able to offer new products later in the week.
Heard it said that the BOE might have to raise the base rate to 3.75% this week and see it go to 5%+ by the end of the year. Strange that the Governor of the BOE said earlier that a special sitting of the Rate Committee that was going to meet today was cancelled & the next interest rate review is not scheduled until November.
Somehow I think the markets will have other ideas & may well force their hand sooner rather than later.
Agree, I can't seem them holding out for a month.
The markets seem to be pricing in at least 6% for next year, I wouldn't be surprised to see an emergency meeting and rates go to the 3.5% area and then up again in November. How high will in part depend on how the previous increases go.
Will be interesting to see how savings rates move if there are substantial base rate increases.
My pension is holding up so far, mostly due to a large US proportion, but some funds still look a bit painful!
Those mortgage lenders pulling lending and the 6% rates are because the PRA issued a set of new stress tests around lunchtime yesterday for the banger banks with scenarios like 30% or so fall in residential property prices, 40% or so on commercial property, base rate around 6% iI think and a few other scenarios. The PRA didn’t say these scenarios will happen, only that banks had to stress their books. I’m surprised they all didn’t pull their lending just to make sure they could cope with the test scenarios.
Most seem to have pulled anything with 10% or less deposit/equity.
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.
Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying. Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%. Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home. No doubt we'll soon see the mortgage providers affordability criteria as the sham it is. And don't even get me started on the buy-to-let ticking time bomb
Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying. Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%. Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home. No doubt we'll soon see the mortgage providers affordability criteria as the sham it is. And don't even get me started on the buy-to-let ticking time bomb
I have been warning this is coming for some months!
Far too many people have borrowed based on the very low interest rates. Those of us old enough can remember when high single digit % interest rates were the norm. Work for a bank and you got a really decent 5% fix which until now seemed ridiculous for the past 10 years.
BTL professionals will weather it, but those who kept one or two flats etc will be in trouble. Although if it does go as pear shaped as I think it can then it may push rents up even further.
We bought our first house in 1993 and fixed the mortgage for 2 years at 7.99%, which was reasonable at the time. Every subsequent fix and a bit of shopping around meant that the rate only ever decreased until the last bit was at 1.29%, which felt like a bargain given the historical rate profile. To the many who have only ever known low interest rates in their property owning stage of life, rises from such a low base are going to be horrific. In the past, a rise from 5% to 7% might well have been manageable if you could already afford the 5%, but from 2% to 4% or more it will be a disaster, especially in the early stages of a repayment mortgage when interest is such a large part of the monthly payment.
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.
As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.
Very fearful that the bed of sand that the property market has called a solid base for the past 20 odd years is about to sink in on itself.
Listening to James OB this morning and many of the situations people have got themselves into is terrifying. Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%. Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home. No doubt we'll soon see the mortgage providers affordability criteria as the sham it is. And don't even get me started on the buy-to-let ticking time bomb
If rates go to 6% it will only be temporally as once inflation is back to 5% or less, and the inept chancellor/Government are sent packing then rates should be back down to around 3%-3.5%.
Meeting my pension advisor in person for the first time tomorrow, having started with them 15 months ago. Investment is down 8.58% since opening on 30 June 2021, so I’ll be ordering some very nice wine with the lunch that she’s paying for!! 😉
A further drop to 9.29% down today…I hope she’s got a good limit on her credit card!!! 🤦🏻♂️
I'm not an IFA so maybe take this with a pinch of salt. However if you're invested in funds 20 seems way too many. 5 or 6 should be plenty to give decent diversification. If it's direct investments I would wonder whether that's right from the limited amount you say or whether some funds might be better, particularly if you are worried about the downside.
As an IFA I disagree. I would usually recommended somewhere between 12 & 15 funds in a portfolio ; a couple of US equity funds, 3 UK equity funds, a European equity fund, an Asia pacific fund (maybe inc Japan but of not then a separate Japanese fund) a commercial property fund & then 4 bond funds. That is for a 60/40 moderate risk portfolio.
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.
Fair enough. In this context is a multi asset fund a mixture of equities, bonds, property, but with the manager changing the balance within the fund as he sees fit?
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Blooming heck. That is going to cause a good few some pain.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Ouch! 4.2% more than mine in December.
Can't help but think the usual suspects are actually trying to price themselves out of the market.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock! Out of interest what is their variable rate?
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
wow. My daughters fixed is due next month. Currently at 1.24%. She is in for a nasty shock! Out of interest what is their variable rate?
Their variable rate (SVR) is 5.24%
Their rate switch/product transfer for those coming to the end of a fixed are slightly different to the above rates and do differ depending on LTV. Their 2 &3 fixed on a rate switch is 4.84% or 4.89% depending on LTV. 5 year is 4.44% or 4.59% depending on LTV.
Or you can gamble & go for their tracker rates which have no early redemption penalties, in case you think that this could all be over in 12 months or so & don't want to be tied into 5% rates for some time. Only do a 2 year tracker - ranging from 0.94% above base (60% LTV) to 1.34% above base for 85% LTV.
Interesting thoughts on the property market. I’m coming up to selling my property but we have yet to sign contracts. Worrying times as we are very close to the finishing line but they could of course pull the plug due to the increase in interest rates. However, I clutch to the idea that the couple buying my property are high income earners and that the reduced taxation on their income will compensate for the increase in interest. Is this a valid counter argument to property buying, even though it’s only short term?
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59% 5 year - 5.19% 10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Comments
Still my S&P 500 is looking great
I'm putting into the GBP section of my account, ready to invest in GBP equities when the time is right. Not just yet, unless anyone has some great tips!
It peaked at down 7% on the day I had my Zoom review.
You couldn't script it.
Heard it said that the BOE might have to raise the base rate to 3.75% this week and see it go to 5%+ by the end of the year. Strange that the Governor of the BOE said earlier that a special sitting of the Rate Committee that was going to meet today was cancelled & the next interest rate review is not scheduled until November.
Somehow I think the markets will have other ideas & may well force their hand sooner rather than later.
The markets seem to be pricing in at least 6% for next year, I wouldn't be surprised to see an emergency meeting and rates go to the 3.5% area and then up again in November. How high will in part depend on how the previous increases go.
Will be interesting to see how savings rates move if there are substantial base rate increases.
My pension is holding up so far, mostly due to a large US proportion, but some funds still look a bit painful!
Listening to James OB this morning and many of the situations people have got themselves into is terrifying.
Can't help but think that a fair bit of dangerous naivety is also part of the mix. One fella said that this 'wasn't supposed to happen' when asked about a possible interest rate of 6%.
Many just don't appear to factor in 'average' interest rates when they mortgage themselves up to the hilt to afford their dream home.
No doubt we'll soon see the mortgage providers affordability criteria as the sham it is.
And don't even get me started on the buy-to-let ticking time bomb
Far too many people have borrowed based on the very low interest rates. Those of us old enough can remember when high single digit % interest rates were the norm. Work for a bank and you got a really decent 5% fix which until now seemed ridiculous for the past 10 years.
BTL professionals will weather it, but those who kept one or two flats etc will be in trouble. Although if it does go as pear shaped as I think it can then it may push rents up even further.
But I'm in the minority as the advisor market seems to be going down the route of multi-asset funds. But even if I do this I would usually recommend 2 or 3 multi asset funds, maybe 4 depending on the amount being invested.
As from tomorrow their fixed rates for a House Purchase are as follows (all with a £999 product fee)-
2 & 3 year - 5.59%
5 year - 5.19%
10 year - 4.89%
The interesting thing (apart from the fact these are around 3.5%-4% more than 12 months ago) is that these are for ALL LTV's up to 85%. So makes no difference if you are putting down a 15% or 50% deposit.
Can't help but think the usual suspects are actually trying to price themselves out of the market.
Out of interest what is their variable rate?
Luckily my youngest is 2 years into a 5 year fix at 1.6% (or thereabouts) and my eldest took out another 2 years fixed a few months ago at around 2%.
This is going to make the cost of energy look like small fry in comparison.
Their rate switch/product transfer for those coming to the end of a fixed are slightly different to the above rates and do differ depending on LTV. Their 2 &3 fixed on a rate switch is 4.84% or 4.89% depending on LTV. 5 year is 4.44% or 4.59% depending on LTV.
Or you can gamble & go for their tracker rates which have no early redemption penalties, in case you think that this could all be over in 12 months or so & don't want to be tied into 5% rates for some time. Only do a 2 year tracker - ranging from 0.94% above base (60% LTV) to 1.34% above base for 85% LTV.