Ishr � Ind-link Discussion Threads

[brugen] 10/1/2013 21:48

The reason for the jump is that the ONS decided not to change the technical measure of how CPI was calculated. RPI measure was flawed in that it did not balance increases with decreases. If inflation went up 5% and the same price volume went down by the same amount then ROI only went down 2% (I'm simplifying the numbers).

Statistically it was wrong but had it been changed the effect on INXG holders would have been lower yields and therefore lower prices.

The market was expecting the change to happen. It didn't so the price spiked.

Regards

brugen.

[badtime] 10/1/2013 12:12

Bought back in yesterday ..but why the sudden jump

[hazelton] 17/10/2012 20:12

Would anyone say that this is back to its longer term trend ?

[mctmct] 30/12/2011 11:07

I wish all my holdings performed like this one. Happy New Year everyone!

[brugen] 02/12/2011 19:48

we're too busy counting our blessings

[mctmct] 02/12/2011 15:56

A good looking chart and a usefully defensive holding in these uncertain times.

Quiet BB, though!

[badtime] 04/8/2011 20:18

lol...i bought more first up

[pixi] 04/8/2011 17:33

12.6 - Oh, my missus will be pleased that I've kept her out of stocks and shares!

[pixi] 02/8/2011 18:18

serratia

Thank you for the Bank of England Pension Fund Report. I figure that if I follow what they do, then I cannot go too far wrong and the missus will also be happy.

The long-term chart is looking very good at over 12.4 and the nearest support looks to be 12.

I suspect that QE3 is on the way.

[jonwig] 04/4/2011 17:37

Indeed!

I wrote to my MP about that last year, and got a reply from the Treasury minister himself.

My main gripe was that you could transfer from a cash ISA to a shares ISA but not vice-versa and, equivalently, that you couldn't buy short-term bonds (under 5 years) in a shares ISA.

His reply was the usual stuff, but at least he admitted that the govt couldn't afford to implement the changes I suggested.

[mctmct] 04/4/2011 17:31

Thanks. The interest rates on cash in ISAs is a scandal.

[jonwig] 04/4/2011 16:52

mct - in the two ISAs I have, I don't get any cash interest, but would rather get zero than risk capital in stuff for the sake of it.

That said, there are a couple of issues which I think are worthwhile, Provident Financial 7.5% 2016 and Lloyds Banking 5.5% 2016 bonds. The dates are well-chosen for current and coming year contributions. With equities and longer-term bonds, I'm feeling there's too much risk at these levels to be adding, though the run has been amazing!

This one, INXG, has been fine for me, and maybe should stay in my portfolio even if inflation fails to take off.

[mctmct] 04/4/2011 11:42

Jonwig

Where do you put cash from share sales that you don't want to withdraw but want to get a percent or two interest rather than just leave it in the sharedealing account? Is there a suitable fixed interest ETF with negligible spread?

mct

[jonwig] 15/3/2011 10:53

These ought to be a good hold at this level - interest rates probably on hold for longer, QE in Japan, etc.

A agree that actually valuing this ETF is a problem: you can do calculations on individual linkers but this is harder.

[skyship] 15/3/2011 09:30

Don't know what price these should be - so sold out @ £11.84 on the spike up first thing this AM.

A profit is a profit, however small; and was certainly a better turn than that receivable from the cash on deposit.

[jonwig] 16/2/2011 18:16

It's a hard one to fathom, isn't it!

The sweet outcome for INXG (and for lots of equity sectors) is that the wrong kind of inflation (the sort we have now) continues but the BoE dare no raise rates much for fear of demolishing the economy - we need higher mortgage rates like a hole in the head, as someone said on Radio4 recently.

The only thing which would generate meaningful rate rises would be for UK wage inflation to gain any traction. But just how could that happen to any meaningful degree? Not in the public sector.

I have to say I thought INXG would have been higher now. Over 1200. I suppose the market says interest rates will rise, and does believe CPI will fall back as per forecast. Holding this can only be as a hedge against the other scenario.

[mctmct] 16/2/2011 11:43

jonwig: From King's announcement today it would seem that the BoE now expects inflation to run ahead of its previous forecasts.

[skyship] 16/2/2011 11:20

Boatbum - sorry for the long delay answering your Christmas Eve email! Obvously not an active thread and I don't ususally come here.

Seems as though Jonwig's analysis of the situation may be right - so my idea of a temporary parking place for cash + an inevitable small rise is/was incorrect. I read inflation UP and assumed this would follow headline CPI or RPI. Seems not to be the case.

Will look to sell.

[jonwig] 13/1/2011 14:20

babylon - much as I'd love to believe you, I don't.

ILGilts discount future inflation expectations, they don't respond to events.

The balance of expectations would seem to be that current inflation is *deflationary* to the UK economy - in other words, it will depress spending and not lead to higher wage demands. In that case, inflation will fall off once the commodity and VAT price shocks have worn off. And that is why the BoE has held rates today.

All this could be a wrong analysis, and being open-minded and cautious I have a position in INXG which will hedge against an outcome where the BoE has misread events. If the BoE is proven right, my INXG will have been a bit of a flat investment at best, but the rest of my portfolio should have benefited.

[babylon3] 11/1/2011 13:34

When inflation takes off then this should fly!

[boatbum] 24/12/2010 12:25

Interesting to see you've bought into these Skyship. What's your long term take on linkers? Do you see them as a safe option in 2011, or is this a temporary parking place? Hope you have a happy Christmas in SW France!!

[jonwig] 23/12/2010 16:05

E G - maybe you've misunderstood what these are for?

[eric gardener] 23/12/2010 14:32

wow a high of 11.64 and a low of 11.58, jeeze what a rollercoaster of a ride this is I can hardly contain myself from pressing the buy button.

Just looking at the chart makes me want to max out on ibuprofen.