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Yes cash is most definitely not king at the moment. I've been moving cash into my stocks and shares ISA. I also put quite a lot into my Funding Circle ISA just before lockdown, which was probably not a good idea, but returns seem to be holding up OK at the moment (about 5.6% tax free) of course that may all collapse when the government funny-money stops being paid to businesses.

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On 08/06/2020 at 23:56, Popuplights said:

Just transferred both mine and the wife's cash ISAS out of ns&i I to the stocks and shares ISAs. Cheers for the 0.9%.  cuntz.

Yep, I can see a lot of BSs having to come with a `begging bowl` to savers when the government `cash cow teat` eventually dries up; a BS without new money to lend is going nowhere...I (and many) will be remembering those who dropped their rates more than the rates actually dropped...that or we would have moved on/becomed conditioned to `greener financial pastures`'

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Been draining my ISA down as it is pointless when you pay no tax on on the pitiful interest anyway and using it to pay off as much credit debt as I can.

So its a double whammy for the bank, they lose my savings and lose their interest.

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Cash hasn't been King since 2008.

It's rather the person who sorts through the King's dung heap hoping to find something they can sell.

uk-base-rates-inflation.png

 

Ironically I am on the point of maxxing out my premium bonds; not because I find that 1.4% tax free return unbelievably attractive but because I want to hold some cash for upcoming expenses and it's either there earning something or in my current account earning nothing.

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11 hours ago, Frank Hovis said:

Cash hasn't been King since 2008.

It's rather the person who sorts through the King's dung heap hoping to find something they can sell.

uk-base-rates-inflation.png

 

Ironically I am on the point of maxxing out my premium bonds; not because I find that 1.4% tax free return unbelievably attractive but because I want to hold some cash for upcoming expenses and it's either there earning something or in my current account earning nothing.

It's sad, what the hell else can you do though?

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On 10/06/2020 at 21:46, Popuplights said:

It's sad, what the hell else can you do though?

I know it looks like despair but don't underestimate the tax free status of an ISA...ok, cash ISAs are pretty pointless at the moment but if you transfer them into S&S isa any gains that you make (avg 6%) and divis are tax free.

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1 minute ago, MrXxxx said:

I know it looks like despair but don't underestimate the tax free status of an ISA...ok, cash ISAs are pretty pointless at the moment but if you transfer them into S&S isa any gains that you make (avg 6%) and divis are tax free.

Yep, it's s/s all the way now. 😄

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13 minutes ago, Popuplights said:

Yep, it's s/s all the way now.

I always have this graph at the back of my mind (recessions greyed).

If you were in the market in 1929 and stayed in till 1932 on average you didn't get your money back (inflation adjusted) until 1959.

Tread carefully.

One of the reasons everywhere was falling to bits until the swinging 60s.

 

97607923_Screenshotfrom2020-06-1221-00-06.png.792128be8b3d843e34204e9271a3ba3f.png

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1 minute ago, Chewing Grass said:

I always have this graph at the back of my mind (recessions greyed).

If you were in the market in 1929 and stayed in till 1932 on average you didn't get your money back (inflation adjusted) until 1959.

Tread carefully.

One of the reasons everywhere was falling to bits until the swinging 60s.

 

97607923_Screenshotfrom2020-06-1221-00-06.png.792128be8b3d843e34204e9271a3ba3f.png

Cheers, don't worry, I'm not all in....I reckon there is another crash coming later in the year. Stock markets at the top, economy in tatters. Does not compute.

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On 12/06/2020 at 21:09, Popuplights said:

Cheers, don't worry, I'm not all in....I reckon there is another crash coming later in the year. Stock markets at the top, economy in tatters. Does not compute.

I'm no expert, but my guess would be the stock market is booming because everybody is pumping cash into it over fears of inflation. A wall of capital is therefore enabling mutton to be dressed as lamb, with junk valued at higher than it should be. When the recession begins to bite in autumn many businesses will fail, the junk will be exposed and market prices will fall.

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1 hour ago, Austin Allegro said:

I'm no expert, but my guess would be the stock market is booming because everybody is pumping cash into it over fears of inflation. A wall of capital is therefore enabling mutton to be dressed as lamb, with junk valued at higher than it should be. When the recession begins to bite in autumn many businesses will fail, the junk will be exposed and market prices will fall.

I'm only basing this upon what I've read about the US but the Fed seems absolutely determined to keep the Dow up through buying any bonds that they issue.

When the money is that cheap companies can issue new bonds and buy out older higher cost debt.

That will significantly boost their net profit.

There may well be a reckoning at some point but if the Fed successfully manages to devalue the dollar and the BoE the pound then if you're sitting in currency it will be a pyrrhic victory because your cash will be worth peanuts.

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16 minutes ago, Popuplights said:

It's a bit of a fucking dilemma!!

Yes.

Anyone who says they know what will happen is telling porkies.

I am in (fairly) defensive mode as I have enough cash for the next five years held as cash; ironically that's more cash than I have held for ages at a time when I think cash is going to be devalued.  It's there to allow me to ride out the wilder market swings and wait for the dust to settle without having to sell anything.

Despite all that you hear of "buy gold" I note that Chards has secondary market sovereigns in stock for the first time for months.

Why would this be?  It suggests that people want cash at the moment - either to cover loss of income from CV19 or like me because they want to have the money in hand to fund the next few years' expenses.

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On 26/06/2020 at 15:31, Frank Hovis said:

Yes.

Anyone who says they know what will happen is telling porkies.

I am in (fairly) defensive mode as I have enough cash for the next five years held as cash; ironically that's more cash than I have held for ages at a time when I think cash is going to be devalued.  It's there to allow me to ride out the wilder market swings and wait for the dust to settle without having to sell anything.

Despite all that you hear of "buy gold" I note that Chards has secondary market sovereigns in stock for the first time for months.

Why would this be?  It suggests that people want cash at the moment - either to cover loss of income from CV19 or like me because they want to have the money in hand to fund the next few years' expenses.

It could be that someone has died and the family wanted rid of the Sovereigns.

A few years ago my local Auction sold off someones coin collection which consisted of a couple of hundred Sovereigns and Half Sovereigns as well as other Gold coins,the beneficiaries must have paid a fortune in auction fees. 

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