CFDs

A lot of angst seems to be kicking around about this, but on the plus side for CFDs signing up to something which is tied to CPI is not (in my view) a dud long-term strategy. Thinking CPI is going to remain in the 2% target range is a bit of a triumph of hope over experience in the UK economy, so if we have, say, 5% instead that would double our payments in just over every 14 years, a decent hedge against the cost of electricity. If electricity shoots through the roof a small element of that will feed into the CPI, so again a bit of a hedge.

I don't know how I'll vote as a member of both Kirk Hill and Derill Water Co-ops: the gambler in me says stay as we are, the more cautious part of me says go CFD and hope for windy Scottish winters and sunny English summers.

Whatever, I'd suggest not many of us joined thinking the Ukraine-driven spike in energy prices was going to feed through into longer term stellar returns like Craig Fatha had last year. We're just fortunate we can afford a bit of cash investment in an alternative approach to saving as opposed to be in the said Ukraine with Russian missiles raining down on the energy infrastucture there.

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