Zurich Growth Fund

Hawkey99 · Post by **Hawkey99** » 12 Aug 2016, 08:34

The fund seems to have gone up hugely in the last 4 months.

Seems very strange especially with Brexit having occurred.

Just wondered if anyone had any thoughts why this might be

Thanks

Post by **RobertT** » 12 Aug 2016, 11:34

The FTSE did drop immediately after Brexit but that fall only lasted a few days, it has risen sharply since. So as the Growth fund is mainly invested in British stock it has also gone up.

The 3 month graph here tells the story: http://www.londonstockexchange.com/exch ... ?index=UKX" onclick="window.open(this.href);return false;

jetblack · Post by **jetblack** » 12 Aug 2016, 11:46

Brexit -> big injection of QE (money) by Bank of England. Also BofE cut interest rate to 0.25%. Both positive for stocks.

Hawkey99 · Post by **Hawkey99** » 12 Aug 2016, 21:26

Thanks for both of your explanations, however the rises seem to be much more than than the explanations you have mentioned.

Just wondered if anyone else checks their investments and if they agree or disagree that the increase % over the last 3-4 months looks very high.

Thanks as always for your replys.....

jetblack · Post by **jetblack** » 12 Aug 2016, 21:46

Hawkey99 wrote:Thanks for both of your explanations, however the rises seem to be much more than than the explanations you have mentioned.

Just wondered if anyone else checks their investments and if they agree or disagree that the increase % over the last 3-4 months looks very high.

Thanks as always for your replys.....

Its been like this before - and yes I do follow the growth funds value. I was on here not too long back complaining about its dire performance.

I wouldn't get too caught up in its recent growth - thing go up, thing go down, in the words of Seasick Steve.

Asset inflation - don't undersestimate the effect that £70 billion new money injected into the economy can have on the FTSE. Its meant to stimulate the economy and make credit more available to business - but it mostly finds its way into pumping up property and the stock market - the prospect/promise of QE (and more of the same) as much as anything else. It looks great at the minute - but I, personally, am hedging on gold and bitcoin

ie. real value that can't be just magic'd into existence.

It won't, I will guarantee you, last. If only - I'd be retired in a couple of years

heapsy · Post by **heapsy** » 25 Aug 2016, 22:05

Hawkey99 wrote:The fund seems to have gone up hugely in the last 4 months.

Seems very strange especially with Brexit having occurred.

Just wondered if anyone had any thoughts why this might be

Thanks

Maybe, as I believe, the remainers were just talking s**t? If you look at what's happened since the vote, FTSE UP. Inflation only just up to 0.6% Unemployment DOWN. The pound DOWN which has had a massive positive effect on exports. Oh, and there's a queue as long as your arm of countries we count as friends and allies who cam't wait to negotiate trade deals with us. Yes it really IS very strange. Oh nearly forgot. Opel of Germany are making 5000 redundant due to BREXIT. Which tells me that the Germans really do want, and actually need to trade with us, something that the remainers said wouldn't be happening.