[Nicola Mclaughlin]

Thank you, that has helped clear my thinking quite a lot. As soon as the new tax year starts I will move my shares into my ISA.

By the way, I’m reading a lot right now about how the markets are undergoing a huge fundamental shift as we move from a low / zero interest rate environment back to one of rising interest rates and possibly high inflation. The bond market seems to be firmly established in a bear market right now due to rising Interest Rates and that as bond yields continue to rise I’m reading opinion pieces that suggest that it is possibly going to negatively effect the stock market (in a stronger bearish move than we’ve already seen recently…possibly leading to the stock market moving into a steady and long decline after years and years of bullish rises).

If all of that proves to be the case, there doesn’t seem to be much that the average retail investor can do to protect themselves…though the income stream from HYP will be a bonus that other investors not buying high dividend shares may miss out on.

Do you anticipate HYP investors finding the next few years tough going? My thoughts are that we are quite well placed because the companies we are investing in usually have lower levels of debt and so are less vulnerable to the rising interest rate environment…but I’m interested to know your views. Particularly about protecting ourselves from inflation???

Even though HYP investors hold their shares indeterminably and so the overall value of the portfolio should matter less to the HYPer than the dividend yield and the income stream, I imagine it’s going to be pretty tough for some investors to watch their portfolio value “shrink” even if it doesn’t reduce in income stream??

Thank you for your thoughts…
Best wishes
Nicola

[Nicola Mclaughlin]

Thank you. I hadn’t realised the difference! It all makes sense now!

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