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Originally Posted by BIRMANBOY
You mean the posting frequency will go down to one per year (if I remember)? Good luck with your new strategy.. I looked at these IFTHA some time ago but already had 3 other IFT so decided no. Not much of a margin???? Swap rates could go lower yet. If you are putting money on a mortgage that's good use of course.
IFTHA are one of the inflation hedge components of my bond portfolio. I haven't bought any over 60c. The yield has been remarkable over the past few years.
I wouldn't like to have bought them at issue, or in the past two years though. . .
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Yes another one of those situations where its WHEN you buy that really matters. I try and point that out to my partner ..."remember how handsome I was when I was younger...just keep that as your focus". Unfortunately she doesn't appreciate that holistic outlook, and seems to prefer the "here and now". Such a waste. BB quote in Confucious style. Whether an investment is a dog or a darling is quite often only revealed by the passage of time and unfortunately there is a lot more of time in front of us than behind us. (although in my case that ratio is unfortunately not true). I see IFTHA is now trading at 6005 and has taken a tumble from 7420 in Feb. I wonder if it will go down to 54 odd. I guess KT is waiting for some bottom trawling. Will you buy in again?
Originally Posted by GTM 3442
IFTHA are one of the inflation hedge components of my bond portfolio. I haven't bought any over 60c. The yield has been remarkable over the past few years.
I wouldn't like to have bought them at issue, or in the past two years though. . .
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I'll be quite happy to pick up some more if they go much lower. I haven't bought for a while due to price, but been happy to sit on what I have as GTM3442 says, the return has been very good if you bought at the right time. Of course selling when they were in the 70's would have been clever too.
I've been buying ASBPB lately........not near as cheaply as in the past, but I'm hoping for a repurchase by ASB in the next few years to give a very healthy overall return.
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I will buy in under 60c, but not many, as I already have almost as many as the plan calls for.
And as I can't see inflation being an issue for the next five years or so (famous last words?) I'm quite happy to wait for the price to fall (under 60c is good, low 50s better).
Selling at 75c would have been nice, but what would I have done with the money? What else was available in the way of inflation-hedged fixed interest to match IFTHA at a sub-60c price?
So selling would have been a 50% profit in the hand at the expense of future profit, and would have left a hole in the asset allocation model.
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[QUOTESo selling would have been a 50% profit in the hand at the expense of future profit, and would have left a hole in the asset allocation model. ][/QUOTE]
I know that many experts place a lot of emphasis on maintaining asset allocations fairly rigidly but I take a much more relaxed attitude to the subject. If something should be sold - or bought - I tend to do so - and hope to sort things out at a later date!
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Originally Posted by macduffy
[QUOTESo selling would have been a 50% profit in the hand at the expense of future profit, and would have left a hole in the asset allocation model. ]
I know that many experts place a lot of emphasis on maintaining asset allocations fairly rigidly but I take a much more relaxed attitude to the subject. If something should be sold - or bought - I tend to do so - and hope to sort things out at a later date!
[/QUOTE]
It was more the question of what would replace those IFTHAs had I sold them.
Asset allocation is a fine tool, to be sure, and I do try to follow my model but, like you, it's a flexible model.
There are, after all, times when tactics do trump strategy.
Last edited by GTM 3442; 03-08-2016 at 05:22 PM.
Reason: Punctuation.
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Member
Anyone think WKSHA is worth another look in current low interest climate.
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I don't know, but I've still got my small holding.
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Member
Still got some too.....Depends on infrastructure spending i suppose....
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Originally Posted by mcdongle
Still got some too.....Depends on infrastructure spending i suppose....
More of an interest-rate play I would think. If you see rates rising in the near/medium future they would be in line for an interest-rate upward re-set. (And vice-versa!)
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