Nasty Mr Inflation and join our Army!
By Mike Narouei, Content Producer at Boring Money
25 June, 2021
Over in Rivendell this week, the Bank of England meeting kept interest rates at all-time lows of 0.1% whilst flagging that inflation is expected to rise to over 3% this summer.
In a display of rude health this week, both the tech-heavy ‘Nasdaq’ index and the mainstream S&P 500 index in the UK reached record-high levels during the day on Thursday. Amazon, Apple, Facebook and Microsoft have all had a good 6 months and Tesla has been accelerating up again this month. It seems that many commentators think this extraordinary tech-driven growth spurt is not over yet.
Panasonic Corp have banked a tidy wee profit, reportedly selling its entire stake in Tesla in March for about $4 billion. They bought the shares back in 2010 when they were worth about $21.15 each – the March low was about $560 each 😭😭😭. Hands up who else bought Tesla shares in 2010 – and take a bow and come and write this blog. Readers I, sadly, did not.
Nonetheless, undeterred, I soldier on to my next potential for untold riches – The Boring Money Fund. Subscribers who were with us in December last year may remember that we asked you to help us create a fund for 2021 – you told us which sectors we should prioritise, in what proportions, as well as cherry-picking some more spicy esoteric investments.
Boring Money Fund Winners – a sneak preview
Next week I will be reporting back on the 6 monthly performance, but based on this extremely short timeframe we are not going to be up for any prizes!! We made up our portfolio of low-cost ETFs or passive funds where available, and it’s a diverse collection of regions and styles. Here are the top 3 year to date:
HSBC American Index fund – up 11%
L&G Future World ESG UL Index fund – up 10.5%
Invesco S&P500 ESG ETF – up 7.3%
That’s the good news. In less good news, our worst performer is down 24.5% over 6 months – I shall leave you to try and guess what that might have been and report back next week. A week’s a long time in markets!? Gulp…..
Nasty Mr Inflation is creeping back into town
“It cannot be seen, cannot be felt,
Cannot be heard, cannot be smelt,
It lies behind stars and under hills,
And empty holes it fills,
It comes first and follows after,
Ends life, kills laughter.”
This is Gollum, explaining inflation to Frodo. Over in Rivendell this week, the Bank of England meeting kept interest rates at all-time lows of 0.1% whilst flagging that inflation is expected to rise to over 3% this summer. Yowzers. In a nutshell, this means cash savings have gone from not at all Precious to really not at all Precious.
It really is the time to question having any long-term savings in cash. Yes, sure it remains King if you have some money you need to keep in an accessible pot for short-to-mid-term reasons. But for anything you are saving for with a 5+ year timeframe it is worth just thinking about any alternatives. Not all investing has to be hardcore 100% in shares – maybe research some of the lower % ‘equity’ portfolios out there in so-called multi-asset funds (https://www.boringmoney.co.uk/learn/investing-guides/product-guides/multi-asset-funds-explained/?utm_campaign=880750_Hollys%20Blog%20B2C%2025%2F06%2F2021&utm_medium=email&utm_source=Boring%20Money%20Ltd&dm_t=0,0,0,0,0) or robo advisers (https://emailboringmoney.co.uk/t/4QZH-IVLA-4DBFEK-FIZWV-1/c.aspx)?
Join the Boring Money Army
Finally, compadres, fancy a side hustle? Something to help make finance better? Like having a say? Would you join our research panel aka The Boring Money Army?
We love our Army. Since we set it up some 4 years ago, you have helped us to fight for clearer pricing, push back against factsheets which need to be better, and told fund managers what you like about them and what you don’t. We’ve tested new robo adviser journeys and asked you what you think are fair prices for advice.
We’re on a recruitment drive for more – and yes we’ll pay you for your time too. As a member, you will be periodically contacted by us and asked to take part in research projects – surveys, interviews and online focus groups. We always offer some very unboring wonga as an incentive for taking part in projects as a thank you for your time. If you are interested in helping then could you complete this form (https://emailboringmoney.co.uk/t/4QZH-IVLA-4DBFEK-FIZWW-1/c.aspx) and we will be in touch?
Have a good weekend everyone. It is Day 14 of the bloody ‘Rona. I’m now on the codeine for the headaches which gave me the small window to write this. Swig pills. Wince. Write! I pray I will be leaping around like a wild thing again next week. Or maybe let’s just start with eating something which isn’t a banana and getting out of bed for more than 5 minutes!? That would be nice!
P.S. I will be better by Wednesday because I have a deadline. I am hosting our first webinar – this one’s on investing and it’s for women aged in their 40s – 70s. We have about 750 of you lovely lot signed up – still space for a few more if you’re tempted (https://boringmoney.webinarninja.com/live-webinars/4809436/register?utm_campaign=880750_Hollys%20Blog%20B2C%2025%2F06%2F2021&utm_medium=email&utm_source=Boring%20Money%20Ltd&dm_t=0,0,0,0,0). I will try my best to do you proud.