Weekly Roundup, 28th March 2017

Weekly Roundup, 28th March 2017

5 Responses

  1. Hi Mike,

    Great round up as ever, thanks! In terms of Ken Fishers comments – it just shows why you shouldnt try and time the market (I know I dont practice what I preach..) – pound cost averaging each month is the best way to remove the stress. My personal view is with Merryn’s – things are over priced, however this is not stopping my monthly pension and ISA contributions ticking in and buying at whatever price it happened to be on that day!

    As for interest rates, I never thought they would stay this low for this long, but as you say can we imagine a world with interest rates at 14%? Right now no as so many people would go bust (I can honestly say I would struggle with our mortgage at that rate!), but that doesn’t mean it can’t or won’t happen – anyone else remember interest rates of 15%? Fortunately back then I was a kid and saving without any debt, but it hit my parents….

    Cheers,
    FiL

    • Mike Rawson Mike Rawson says:

      Hi FiL,

      You’re right about stress, but pound cost averaging lowers your returns in the end. I just put the money in the market as soon as I have it (which is what you seem to be doing as well).

      I can certainly imagine 14% interest rates because I lived through them back in the early 1990s. I had what was then thought of as a big mortgage (3 x earnings) so I was quite keen to pay it off.

      At the moment I can’t see a rate rise in the UK, but the one certainty in life is change.

      Mike

      • Hi Mike,

        I will be putting it in as soon as I have it on the Go T’ Pub portfolio, but on my active managed one I am not – in fact I am sitting on a larger cash balance than I have for years waiting for a timing!

        I am with you – can’t see much of a change (I doubt it will get above 1%) for another couple of years, but with uncertainties ahead, who knows 🙂 Like you – I would want to clear my mortgage as fast as possible – but also as efficiently, so I have to have some sleepless nights as money goes into ISAs rather than off the mortgage!
        Cheers,
        FiL

        • Mike Rawson Mike Rawson says:

          I would say that paying down debt is the same as investing it. Sitting on cash is the bad habit you don’t want to develop.

          • I am with you I count it as part of my savings rates.
            Yes, cash is not a good store, so I know I should have just thrown it into the market months ago (I’ve now lost out on the quarterly dividends), but I can’t help myself on that one….!

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Weekly Roundup, 28th March 2017

by Mike Rawson time to read: 8 min
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