Totally agreed. I have already an account with competitor with more ETF choices, funnelled extra money to that account.
Customers can have so much patients after months and months of their ETF requests are ignored.
I wonder if it is so complicated adding ETF to the system though that makes them takes so longā¦most of those ETFs are listed in LSE.
The trouble with the Gold standard is that with a growing population and growing economies a fixed money supply is inherently deflationary. This stifles the economy as people want to hoard the gold rather than spending it.
If bitcoin works as intended it would have exactly the same problem
Some thoughts on the gold standard from Ben Bernanke:
Youāre not wrong.
As time goes by though, the financial instruments available to BTC are slowly evolving to reflect what can be done with fiat currencies. There wonāt be much difference within a few years, except BTC wonāt be under the control of any government, instead it will be controlled by some very powerful individuals.
This is what is so terrifying about Bitcoin though. Interest is a very specific form of payment. What is actually being done is people lend their Bitcoins to gamblers to earn a speculative return. This is not similar to fiat currency and the risk profile is so different.
The people/companies who are well over borrowed on thin air or multiples of earnings will simply loose out.
Those that have been careful and have not overstretched themselves and have cash will simply buy gold - the gold price will rise - to a point where some may release some in order to purchase other things - the next holder will do the same
So you would back this new regime with a free floating gold priceā¦ this just shifts the risk onto something other than the currency itself without solving the underlying issues.
We only need to stimulate an economy in order for governments to be able to repay the bonds - when This doesnāt happen the bonds are worthless, people stop buying the bonds and the economy crashes at the realisation that everything has been built on sand.
We need to stimulate the economy to ensure that we continue to live the incredibly long and comfortable lives we have become accustomed to.
Thinking if high inflation really does happen, stock prices will raise because corporate revenues raises along with it. So what is the worry then?
I agree but letās remember - That some in the UK have have not been used to this and things may be about to get extremely tough for them.
If mass unemployment happens that will NOT stimulate the economy and will make problems worse if they create mass inflation as the divide between rich and poor will swell leaving a HUGE burden on the government on top of the already HUGE debt they have!
Eventually these bonds will be worthless.
As always I presume most of us are fortunate on here to be able to diversify ourselves to hedge against conflicting theories.
There comes a point when a government must decide weather the well being of people is more important than the constant desire for growth and greed.
Look at some African countries where the governments have been so greedy and deceitful that they have starved their nations to satisfy their own greed and desires of a very small minority.
Depends how high and depends what kind of company. Some corporates may see their profit eroded as their cost base rises. Inflation is not uniform.
That is different to what I am proposing though. I am not advocating for a society for the elites but one which sees money flow to more people than just those who hold cash.
The UK government can stimulate the economy and help drag us out of this though? The bonds arenāt worthless as long as there is tax revenue.
But thatās the point though !
If there are limited jobs there is no tax revenue
But there are jobs and wealth is still being created? This platform is a good example of this. Most people owe more than 100% of their annual income in mortgage debt so the UK government can easily cope.
And when they loose that job how will they repay their debts!
The whole world is way to over borrowed because thatās the message from the government thatās itās good - they can issue more money.
An individual CANNOT and if their income is cut without being replaced eventually they will bankrupt.
Same for companies.
In that case, if one invested in broadly diversified index fund such as VWRL, the value will raise according to the inflation rate.
Also there are also inflation linked bond fund such as INXG.
So those two should protect one from future inflation however high/low it may be, isnāt it?
FreeTrade should recognise there are a large amount of etf focussed investors on here that want to benefit from sector performance and to ādabbleā in individual shares.
Say I want to log into FreeTrade and place three trades for a 6-12 month mindset (if not longer):
ā¢ Ā£1250 in Semiconductor etf
ā¢ Ā£1250 Cyber Security etf
ā¢ Ā£1250 Healthcare etf
This strategy is currently not possible. Sector plays are my investment strategy. Next year I might want to rebalance and put the gains into the travel sector and leave the above three etfās alone for a whileā¦ All of which is not possible. It leaves me at the conclusion to just buy a single developed world etf because the only other strategy I want to perform, can not be done on here and my strategy is an obvious one, to use ETFās 90% of the time for long term gains.
No because part of the pricing of equities is based on the risk free rate. If inflation were to rise so would this rate and this would change the way discounting worked and the value a DCF model would produce. Stocks would not necessarily keep up.
Agreed that TIPS for example would keep their value Bette rebut again it depends on what happens to interest rates. As rates rise prices fall and so you could still see tour bond holdings lose value even as the coupons rise in line with inflation.