I currently have 7 shares of CSPX.L and 150 shares of IWDG.L. I believe these to be sound investments but this is a belief backed up by little financial understanding. I think these ETFs are good because they diversify my portfolio geographically and by sector but, as I understand, are vested entirely in equities.
I was thinking of buying £1000 worth of an ETF in government bonds (IGLT specifically). I did a bit of research and I've heard of them described as an "insurance policy" against equities leading me to believe that generally when stocks go up, bonds go down and vice versa. Is this the most economical use of my cash? Can I expect the two to be somewhat inversely proportional to each other?
Based on a comment I'm adding more information. I would say I have a slightly above average tolerance for risk. On a scale of 1-10 (ten being riskiest) I would be a 6.
In terms of investment goals I don't have any specific target. I just have some money that I want to put to better use other than an ISA. I may withdraw it in 5 years, 10 years or 40 years.