The FTSE

[117 M34]

you definately would not want shares in cash rich company if inflation takes off, the companys with debt will slaughter them in the stock market

The glazers like this

 

[ChicagoBlue]

It will peak at 6% mid year according to some Gov statistician yesterday, who was basing it on a balance of forecasters and their usual success. But that was is for the month rather than rolling year.

Interest rates to go up at least 0.5% by then also.

I don’t have heartburn with any of that, but when people (here) talk about inflation, it is often as a bludgeon with which to beat Biden, which is a joke.

The problem is an economy that is basically strong, and into which the Fed should have ALREADY been raiding rates, but couldn’t because of the liquidity they have been creating to help maintain full employment against the backdrop of the pandemic!

As the pandemic subsides, and the supply chain inflation abates, I think we will settle into a 2023 consensus inflation rate of about 2.5-3.5%. Whether the Fed can live with that, on the high side of their desired rate, I don’t know, but feel like they won’t have a choice!

Once they start raising, they will start paring their balance sheet, which will take significantly longer to unwind than it took to grow.

Accordingly, they may (have to) overshoot on rates a little, in order to have something to take back if the economy finally splutters down the road.

It’s a tightrope walk that many have said has taken too much time to get moving, but all things considered, I think Powell has done a masterful job of creating little to no surprise over Fed policy or movement so as not to spook the markets.

My target is “3 in 3,” after an early-mid 2022 peak annualized rate of 7% gives way to 5% by Q3 and the 3s by 2023.

That’s worth what you paid for it!

 

[M18CTID]

Well my pension fund is now over 40% down on where it was 12 month ago - think I'll be retiring in my 90s at this rate, assuming I live that long ha ha! Everything I'm invested in has taken a hit. My biggest faller is NIO and I'm balls deep in that one so just got to ride it out

 

[DenisLawBackHeel74]

Well my pension fund is now over 40% down on where it was 12 month ago - think I'll be retiring in my 90s at this rate, assuming I live that long ha ha! Everything I'm invested in has taken a hit. My biggest faller is NIO and I'm balls deep in that one so just got to ride it out

It will bounce back.

Nio was $65 a share briefly this time last year.....

 

[mscenterh750]

Well my pension fund is now over 40% down on where it was 12 month ago - think I'll be retiring in my 90s at this rate, assuming I live that long ha ha! Everything I'm invested in has taken a hit. My biggest faller is NIO and I'm balls deep in that one so just got to ride it out

Buy the dip and reap the rewards later.

 

[mscenterh750]

My bailie gifford fund is currently -31.5% but I’m not worried and it means the money I invest each month buys me more shares. I have shares in Vodafone, Airtel Africa, Greencoat and an FTSE 100 fund that are performing pretty well at the min. Ride the storm and all will be fine.

 

[M18CTID]

It will bounce back.

Nio was $65 a share briefly this time last year.....

Yeah, it's not like I can draw on my pension yet so not point in worrying. I've become largely desensitised to the constant daily drops in all my investments.
My average buying price for NIO is just under $43 a share. I got in late after the big rises in 2020, and I guess it was a little overvalued for a while but it appears to have a very bright future

 

[hampshireblue]

Well my pension fund is now over 40% down on where it was 12 month ago - think I'll be retiring in my 90s at this rate, assuming I live that long ha ha! Everything I'm invested in has taken a hit. My biggest faller is NIO and I'm balls deep in that one so just got to ride it out

It will come back,but if you've lost that much it sounds as if you're not properly diversified or you're so far from taking it that you're confident you've got time for it to recover. As a data point I'm down around 5%.

 

[M18CTID]

It will come back,but if you've lost that much it sounds as if you're not properly diversified or you're so far from taking it that you're confident you've got time for it to recover. As a data point I'm down around 5%.

Yeah, you're right. I'm probably not diversified enough in all fairness. I'm about 8-10 years off taking it but depends on how it performs in the meantime. If NIO truly took off, it could be less. On the flip side, it could be more!

 

[hampshireblue]

Yeah, you're right. I'm probably not diversified enough in all fairness. I'm about 8-10 years off taking it but depends on how it performs in the meantime. If NIO truly took off, it could be less. On the flip side, it could be more!

No criticism from me as I'm no expert. I have the likes of NIO in my ISA and is only money I can afford to write off for a few years. My SIPP is totally invested in funds though..and managed by a fellow blue!