Friday, Jan 04, 2013

Not good advertising for Gilts

Torygraph: Bond bubble fears and why I took the biggest bet of my life

Gilts yields just went up over 2%. This guy, has announced he has dumped all of his gilt holdings because they are going to get slaughtered and moved into equities. Also advises readers that as they don't legally have to purchase an annuity any more they shouldn't do so. Hmm. Not exactly what the government debt issuing office wants people to read. Canadian Carney may feel he has misjudged his new position if he is forced to raise interest rates soon after landing at the airport.

Posted by stillthinking @ 02:42 PM (1600 views) Add Comment


1. drewster said...

"I expect bond prices to fall when interest rates rise..."

So when exactly are interest rates going to rise? Most analysts aren't expecting a rise in 2013. Besides, when interest rates rise, everything gets slaughtered: bonds, shares, houses, etc. Even gold suffers. There's no safe place.

I suspect that the safest places for your savings are outside the western world; but I don't know much more than that. Also, UK property offers a half-decent yield: your capital may be at risk in the short term, but if you can hang on long enough then it will eventually recover.

Friday, January 4, 2013 11:52PM Report Comment

2. hpwatcher said...

It won't be UK government or BoE that increases UK interest rates and that's for sure.

Saturday, January 5, 2013 10:13AM Report Comment

3. libertas said...

Of course, in such volatile times, you have to be an insider trader to really ride the stock market. I would personally opt for gold and move into equities after the next stock market correction.

Sunday, January 6, 2013 11:08AM Report Comment

4. libertas said...

Drewster, gold is a global currency. It is outside the UK even when it is in the UK. Since the global economy is just fine and government's everywhere are purchasing, gold should do well.

HP Watcher. Indeed, markets will cause LIBOR to slowly edge up. They can contain it for a while, but in the long run it will drift upwards. The question is when. The answer to that is, when they have us in enough debt. What the establishment want to do is Greece, I mean, Fleece us. They will come in and sell off all the motorways, NHS, local government services, etc. to global corporations. That is the plan. But we aren't in enough debt yet to justify that so they will ramp it up a bit more so that they get optimum stinking rich when they drop the hammer.

Sunday, January 6, 2013 11:12AM Report Comment

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