88V8 wrote:Haha, yes.
I don't disagree that inflation is going to return. Govts will want it to return to deflate their debts.
And this will depress the prices of FI. But I think Trusts are in a better position than the average private investor to manage this situation. It's not as if we never had inflationary periods before.
So having bought in to NCFY - and Shires SHRS which is another FI play - I'm going to sit tight, or even add.
V8
flyer62 wrote:HDIV seems to be in the same position as NCYF was after the John Baron article.
My guess is the discount will tighten again with HDIV.
airbus330 wrote:John Barons rationale for the selling of NYCF. Nothing very surprising.
" However, during the quarter, the portfolios added more specific insurance by way of INXG – an ETF given there is no investment trust equivalent – courtesy of a reduction in exposure to HDIV and NCYF. Bonds tend not to do well as inflation rises. During the early inflationary stage, higher-yielding corporate bonds can offer better protection than gilts. However, inflation-linked bonds have traditionally acted as a good inflation hedge, regardless of the stage of inflation."
88V8's comment: "I don't disagree that inflation is going to return. Govts will want it to return to deflate their debts.", is very pertinent to me.
I noted that John Baron sold HDIV and NCYF in his April report this year and then bought NCYF in his July report.
see also: viewtopic.php?f=54&t=28856&p=435339#p435339