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Investing in UK Bond ETFs - -GLTL and 3GIL

Interest-Rates / Investing 2023 Oct 09, 2023 - 09:54 PM GMT

By: Nadeem_Walayat

Interest-Rates

GLTL.L - £39 - UK Gilts 15+Yr

UK bonds have been obliterated, portfolios built up in bond funds over the past 10 years have been wiped out! Now you know why I have avoided bonds. Pittance in return during their bull market followed by a spectacular collapse, all whilst the lemmings encouraged stock investors to seek safety in bonds! This bond fund has COLLAPSED BY 60% off its high of £82! Imagine those who had parked the bulk of their cash in such funds by following the advice of FA's! Only discovering the catastrophe when they get their annual statements, A lot of TV's will have had remotes thrown at them! This is why there is no FREE LUNCH! It is YOUR MONEY it is upto YOU to DO THE WORK and understand what you are invested in else PAY THE PRICE of a 60% wipeout in what is supposed to be an ultra safe low volatility asset! When the exact opposite is true! If you lost similar on UK bonds then it's your fault for being LAZY! DO THE WORK!


Anyway bond market collapse breeds opportunity and I have been accumulating sub £40, yes it could spike lower, it could revisit £35 or even go lower, but we will only know for sure in hindsight, without which I am focused on accumulating under £40 with limit orders ranging down to £30. Upside potential is first £60 and then £65 for a potential 55% to 65% return over 2-4 years.

3GIL.L - £72.5 - 10 Year X3 Leveraged

The higher risk component for this mini bonds portfolio, one that is suited to scaling in and out (trimming), Already accumulating at £68 and trimming at £78 has yielded a 15% return which is my strategy for this leveraged bond fund, accumulate during the dips that could potentially trade down to £60 for distributing during the rallies that target £100, that's a 66% spread! Where even a fraction of which could deliver 30%. For buy and hold the target would be £100 for 42% off £70 and £133 for 90%. In terms of percent of this mini bond portfolio I would not go over about 15%, even though I am personally tempted to do so, it is levered so higher risk.

This article is excerpted from my extensive analysis Inflation Bond Fire of the Vanities Breeds Opportunity that was first made available to Patrons who support my work. So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $5 per month, lock it in now at $5 as this will soon rise to $7 per month for new sign-ups. https://www.patreon.com/Nadeem_Walayat.

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S&P

Targeting 4600 Mid Summer 2023 Top followed by correction to below 4150 into October 2023.

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Your trimmed the FOMO to buy the Dip analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2023 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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