When Intermediate Core Plus Bond Funds become an option

[fasaad]

At what point in this investing cycle/climate might you venture back into Intermediate Core-Plus funds? Some are down 5-to-nearly-10% (as of 3.14.2022).

If the Russian war in Ukraine persists, combined with the sell in May (equities) crowd, and central banks start, but ease up on aggressive rate hikes, when might Intermediate Core Plus be better than cash or Stable Value (in 401k)?

At some point, if equities tank, and the Fed does gradual hikes, (some) people, especially near/at retirement age, will need some sort of ballast.

I own WAPSX Western Asset Core Plus Bond Fund, which makes up a whopping 1.5% of my 401k right now. Stable Value is at more than 60%.

[steadyeddy]

Mar 14, 2022 18:45:39 GMT fasaad said:

At what point in this investing cycle/climate might you venture back into Intermediate Core-Plus funds? Some are down 5-to-nearly-10% (as of 3.14.2022).

If the Russian war in Ukraine persists, combined with the sell in May (equities) crowd, and central banks start, but ease up on aggressive rate hikes, when might Intermediate Core Plus be better than cash or Stable Value (in 401k)?

At some point, if equities tank, and the Fed does gradual hikes, (some) people, especially near/at retirement age, will need some sort of ballast.

I own WAPSX Western Asset Core Plus Bond Fund, which makes up a whopping 1.5% of my 401k right now. Stable Value is at more than 60%.

Stable Value is a great option. I use it to the fullest extent in my 401(K). Outside I am a buyer of Intermediate bond funds such as IUSB (which is a core plus), and VCIT (which is corporate).

My view is that the Fed would not be able to raise rates as much as they want to.

[Chahta]

In my opinion core/core plus may become worth buying once rates stabilize. I read a Seeking Alpha article that stated once the Fed starts raising short term rates it will allow longer term rates to stabilize (I am paraphrasing). I will be watching the next few weeks to see how all bond funds react. The following link was posted by FD1000 elsewhere. Even though the article talks about CEFs the idea should apply to OEFs as well.
redirect.viglink.com/?key=71fe2139a887ad501313cd8cce3053c5&subId=7191902&u=https%3A//seekingalpha.com/article/4492450-a-history-of-rising-rates-and-cefs%3Fmailingid%3D26907800%26messageid%3D2850%26serial%3D26907800.1581%26utm_campaign%3Drta-author-article%26utm_medium%3Demail%26utm_source%3Dseeking_alpha%26utm_term%3D26907800.1581