Defensive portfolio

[NeverBeenNorthOfTheM25]

in my humble opinion, if you think inflation is coming,

then use the 30k as a deposit on a mortgage for a property

following the inflation the mortgage will be deflated down

very nice

what does the congregation think, shirley if inflation is coming, now is the
time to take a mortgage ?

Milan.

Huh? If inflation goes up, the main way the Reserve Bank has to combat this is to raise interest rates.

The higher the interest rates, the more interest you pay .........

[DimPrawn]

It's a very good question.

IMHO the pound has already devalued greatly against the Euro, I would be more tempted to hold USD, where the pound is still relatively strong.

I am looking at US equities that are based around land and property, has land and property prices in the US have taken a massive hammering and look good value.

Eg.

http://www.google.com/finance?client=ob&q=NASDAQ:ALCO
http://www.google.com/finance?q=NYSE%3ATRC

This way, you get benefit of any rise in the US dollar against a sinking pound and are buying companies whose income and price is based on the value of US land and property.


The option is to diversify into some funds that hold a broad range of things in many currencies(e.g. a fund that yields over 8% and invests globally).

http://www.share.com/cgi-bin/oicgi.e...et&param1=7681

Or something like this.

http://www.share.com/cgi-bin/oicgi.e...t&param1=10093


Or perhaps take a punt on a dying pound by putting into a USD denominated account and sit and wait for the collapse.

http://www.citibank.co.uk/personal/b...?merchant=citi

[DimPrawn]

Huh? If inflation goes up, the main way the Reserve Bank has to combat this is to raise interest rates.

The higher the interest rates, the more interest you pay .........

Perhaps MB is suggesting a fixed rate mortgage (BTL) if such a thing exists these days.