Richard Murphy says:
December 30 2022 at 4:51 pm
My pension was wholly in cash this year, just for the record
The economic genius is entirely in cash in a year when inflation hits 11.x% (can’t be bothered to look up what CPI hit).
Revealing.
FTSE100 is up 0.91% on the year. Plus a 3.72% yield.
Hmm.
To be fair not being invested in any markets has proved to be a pretty good investment strategy in 2022. Given one of the principles of investing is to avoid the worst outcomes rather than hit the very top of everything, being in cash this time last year has turned out to be a sound move. 2022 has proved to be one of the worst years for investors since the 30s, bonds and stocks have been hammered globally.
Spud may be a stopped clock, but he wasn’t wrong here IMO.
Interesting… So there hasn’t been any changes to his bank account(s) over the entire year, yet he still pays for Stuff?
When Joe Blogg does that at any level, The Taxman Cometh, with a vengeance…
The cvnt rages about tax relief being given for pension contributions invested in what he describes as “unproductive” asset classes, such as quoted equities, then has the brass neck to announce his pension is in cash?
Man’s a shameless fvcking bell3nd.
He was lauding being 100% in gilts not so long ago..so the 100% cash thing is a lie to try and ;look clever or he sold everything in a panic when gilt prices were collapsing
A pension invested 100% in cash is not an entirely unreasonable strategy if you are about to retire. Murphy will be 65 next year. We can but hope.
Sam Jones: IIRC the expected remaining life for a healthy 65 year old is a further 20 years. That’s a pretty long investment horizon to be all cash. As for his retirement – I don’t think his ego will let him.
@Sam Jones – “A pension invested 100% in cash is not an entirely unreasonable strategy if you are about to retire.”
Since a man who is 65 has a life expectancy of another 20 years, and a 10% chance of living to 96 (see https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07 ), 100% cash is not reasonable at all. 100% cash is only resonable if you expect to die so soon that you couldn’t spend it all. Since people no longer buy an annuity as soon as they retire, it makes no sense to structure the investments to make them ready to spend immediately, and commercial pension providers are moving away from pension lifestyling as a result.
Pension? I suspect we’re talking about funeral money tied up in a sock.
If you believed the markets could tank in the near future, being in cash and taking the full inflation hitis not a unreasonable strategy. Will they tank? The only sure way of knowing is hindsight.
Don’t forget under the ‘Green New Deal’ he plans to steal the pension and ISA savings of every private sector worker in the U.K. for himself – I’d imagine he foresees taking a small ‘fee’ for admin purposes of course. All entirely above board.
“My pension was wholly in cash this year, just for the record”
As I always say, what people tell you are just words in a row. The information is derived from the question “Why are they telling me this?”
@AndyF
That’s timing the market – very much a losing strategy.
And even if you really did have information that all shares were going to fall, that doesn’t mean you should hold cash – there’s also gold, art, property, bonds etc.