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Rearmament, debt, gilt and bond funds.
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NPH
Posted: 06 March 2025 16:43:29(UTC)
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With the stock market suffering some jitters, the traditional response would have been to go into bonds.

However, with Germany changing it's debt rules and the UK having no financial headroom, gilts seem. to be all over the place.

I am highly inexpert on bond funds but am very aware of what happened in '22.

So, valid flight to safety or likely just as volatile as equities? Or does it vary by category? NB this relates to funds only, not buying individual gilts.

Be nice, I've admitted my lack of knowledge!
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ANDREW FOSTER on 06/03/2025(UTC), Sara G on 06/03/2025(UTC), AlanT on 06/03/2025(UTC)
Thrugelmir
Posted: 06 March 2025 17:14:26(UTC)
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If you aren't comfortable managing your own portfolio fully. Pass control of a % to a multi asset fund manager. There's no books that can prepare you for volatile markets. Strap yourself in for a roller coaster of a ride. Going to a wild experience.
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ANDREW FOSTER on 06/03/2025(UTC), Tim D on 08/03/2025(UTC)
Sara G
Posted: 06 March 2025 17:17:40(UTC)
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I'm no expert either, but I find I'm less concerned about rising yields for now. I think that the reasons behind debt increasing are key. Reeves borrowing more to fund public sector wages with no improvements to productivity (for example), is quite different from Europe using debt to re-arm itself IMO. I can see the increased debt boosting growth in some sectors, so perhaps equities are preferable for that reason.

NB it looks like yields are fairly stable at the short end, so limiting duration might be a good idea if it's money that you may need in the next few years. As ever, buying individual Gilts provides some certainty in terms of returns, as opposed to a bond fund, although my short duration IL bond fund is doing well at the moment, presumably as a lot of what is going on is likely to be inflationary to some degree, and more so than was previously anticipated.
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3 users thanked Sara G for this post.
Taltunes on 06/03/2025(UTC), Lindisfarne on 06/03/2025(UTC), Guest on 07/03/2025(UTC)
NPH
Posted: 06 March 2025 17:56:59(UTC)
#4

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Sara G;336732 wrote:
I'm no expert either, but I find I'm less concerned about rising yields for now. I think that the reasons behind debt increasing are key. Reeves borrowing more to fund public sector wages with no improvements to productivity (for example), is quite different from Europe using debt to re-arm itself IMO. I can see the increased debt boosting growth in some sectors, so perhaps equities are preferable for that reason.

NB it looks like yields are fairly stable at the short end, so limiting duration might be a good idea if it's money that you may need in the next few years. As ever, buying individual Gilts provides some certainty in terms of returns, as opposed to a bond fund, although my short duration IL bond fund is doing well at the moment, presumably as a lot of what is going on is likely to be inflationary to some degree, and more so than was previously anticipated.


Thanks very much. I have my 'buffer' money in RLMM and RLSTFI so I think these will be fine, but other categories remain a big concern.
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Sara G on 06/03/2025(UTC)
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