Obviously if there is a major correction, beside shorting, "Cash is king" but we need to avoid double taxation which leaves Cash ISAs (no good for shifting significant amounts into) or NS&I inflation-linked 3 yr bonds.
Anyone shifting their existing equity ISAs into bond funds?
So far I've spotted New Star's Extra High Yield Bond fund is one of the better performers but still looks like you'd lose money in a full on crash according to the longer term graphs. Just not as much as equities.
These bond funds seem to be a waste of time held outside an ISA as you get taxed on the interest (if 60%+ of fund holdings are bonds) so you may as well hold cash.
Government bond funds offer crummy returns but will protect you better.
As for equity funds Invesco Perpetual High Income is a good defensive equity fund, but could still take a hammering if things go really tits up.
Anyone shifting their existing equity ISAs into bond funds?
So far I've spotted New Star's Extra High Yield Bond fund is one of the better performers but still looks like you'd lose money in a full on crash according to the longer term graphs. Just not as much as equities.
These bond funds seem to be a waste of time held outside an ISA as you get taxed on the interest (if 60%+ of fund holdings are bonds) so you may as well hold cash.
Government bond funds offer crummy returns but will protect you better.
As for equity funds Invesco Perpetual High Income is a good defensive equity fund, but could still take a hammering if things go really tits up.
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