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Re: None

Wednesday, 03/21/2012 6:32:42 PM

Wednesday, March 21, 2012 6:32:42 PM

Post# of 47132
Has anyone come up with a V-Wave equivalent for bond funds? A way of establishing the currently advised cash proportion when starting bond fund AIM accounts would be useful.

Could yield be a basis? E.g. in the UK the 10-year gilt yield is in the bottom percentile, going back to 1985 (whereas the FTSE All-Share Index yield is in its 78th percentile). This suggests a currently very high level of risk for UK government bonds.

Allowing for inflation, the gilt yield is in its 2nd percentile and the equities yield is in its 48th percentile.

However, the gilt yield minus the cash yield is in its 78th percentile - the depressed cash yield has pushed money into bonds of course.

Daisy.

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