|
Post by chang on Dec 11, 2022 14:12:24 GMT
6 month Treasury auction just announced in the last hour yielding 4.556%. I can’t see any reason not to move some MM into these. Just for the record, the auction closes tomorrow and the expected yield now shows at 4.637%. I had planned to buy, but will wait until next week, after the expected rate increase (of 0.5%). Seems worth waiting one week for that. There will also be a new 5-year TIPS note. I will be interested to see the yield on that.
|
|
|
Post by yogibearbull on Dec 11, 2022 14:31:13 GMT
chang, don't trust the quotes when the markets are not trading. For Treasuries, some brokers even deactivate secondary click for Treasuries over the weekend. Auction prices (or yields) are hard to guess. Everybody knows that rates are rising on Wednesday, so that may be factored already in auctions bids for tomorrow's 13-wk and 26-wk, but you won't know that until the post-auction data. T-Bills have weekly auctions except for 52-wk that has monthly auctions. www.treasurydirect.gov/auctions/general-auction-timing/
|
|
|
Post by FD1000 on Dec 11, 2022 14:35:58 GMT
fishingrod Thanks, you’re not beating a dead horse at all, this is excellent analysis. You’re saying that when I buy VGSH, I’m buying older bonds with lower coupons, but I’m paying lower prices than they originally sold for, so I’m getting today’s yield. Makes perfect sense. Only question is: if rates continue to rise (which they will), if I buy a $1,000 6-month T-bill today, its value on the secondary market will fall BUT I will get my stated yield AND my $1,000 back in six months. If I buy VGSH instead, the NAV will fall, and I won’t get that back in six months. Eh….? I want to give a SHOUT-OUT to fishingrod ( fishingrod ,) who is stating restating (his past posts) well. The total return includes the rise in eventual price of the discounted bonds in the fund portfolio. FD keeps harking on one small time period VGSH was not optimal. Several good buy times have occurred since. I am not losing on VGSH. But also have huge gains in VGIT and TLT. Also I have money in MM Funds awaiting further deployment. Yes, bond funds as time marches on may have rates go up or down...doesn't matter if you bought. I will repeat for umpteenth time the BOND RULE OF THUMB is in play...always. That is, you get the starting total yield for that day, if held to duration, regardless of the direction of interest rates. Buy a five year treasury bond fund at 4%, hold for 5 years, you get approx 4% annualized regardless of rate changes. And if rates continue up, your bond fund manager will continue to take, as a minimum, maturing bonds at par, and reinvest the monies into the new higher rates, so your distributional income keeps pace...keeps rising. The reason I am in treasuries now, and not corporates, is that I consider the yield spread not great enough--if we get a recession, I suspect corporate bond yields will rise further, and treasury bonds, with flight to quality, will fall in yields, giving a cap gain...(happened last 30 days ??). If we get a couple high profile bankruptcies as headlines, expect corp bonds to fall more in price. Yes, if one wants to lock in a corp bond at 1% more in yield, go ahead. I'm simply trying to maximize here, use historical knowledge, and reduce risk. BTW many bond gurus are also saying 5 year treasuries is currently the sweet spot. David Geroux (TRP) says his fund has never owned a treasury bond...but does now! R48 Here is the problem with the above. You are trying to rewrite the history You should make decisions based on current market. If you know at any moment that one security is better than the other, why would you invest in the "bad" one. See the chart below as a reference it 1) In 03/23/2022, you posted about VGSH. I said stay away, use MM. 2) In 05/2022, you bought your first bucket, I still said to stay away, use MM. You still lost money after 7 months while, MM made money. 3) In 06/2022, you bought your second bucket. I said buy CD/treasury and they are still ahead of your second bucket. BTW, you bought this bucket lower than the first, where is pyrup?4) In 11/2022, bond had a huge turn around, VGSH was not the right choice for traders or if you understand bond markets. If you wanted to stay ST, SHM(ST muni), made more than double than VGSH. From this point after 9 months, it doesn't matter what VGSH will do, because the options above were much better. MM/CD/Treasury were guaranteed without risk, while VGSH fell 5% peak to trough. Bottom line: The rule of thumb maybe correct in 2 years but along the way, you could make much better choices of better performance + lower SD.=========== To the question of corp vs treasury. Your analysis is too simplistic. Why would you look at only "pure" indexes. Let's look at DODIX, high-rated bonds(a mix of Gov,Corp,securitized) + PIGIX corp bonds, funds many know. One month performance ( link) shows PIGIX made 5.9%...DODIX made 5.1% while VGIT made only 2.9. Making 2.2-3% more in just one month in bondland is huge.I can't emphasize it enough, yield should never lead your decisions, no matter what, it's always about TR. Attachments:
|
|
|
Post by yogibearbull on Dec 11, 2022 14:37:57 GMT
|
|
|
Post by retiredat48 on Dec 11, 2022 14:48:54 GMT
FD, I'm not going to comment, as you keep posting the same thing.
You cherry pick the VGSH initial purchases and ignore the rest. Instead of "one fund (VGSH)" if we label this "My 2022 Treasury Bond Allocation/Purchases" then I am way ahead of your Money Market stuff.
Then you compare treasury bond fund purchases with corp bonds, citing Dodix + PIGIX one could have done better. Or worse. There are over 15000 mutual funds; easy to go back and select one that may have done better to ones investment. I don't care. I'm talking about treasury bond purchases...not corporates, and have discussed rationale elsewhere.
And you never have to "re-write history" as you don't post trades in real time, only stating such about three weeks later...so your history is always spectacular!
Lastly, Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. OK to buy at lower and lower prices. I have stated this a thousand times also.
R48
|
|
|
Post by richardsok on Dec 11, 2022 16:10:41 GMT
FD, I'm not going to comment, as you keep posting the same thing. You cherry pick the VGSH initial purchases and ignore the rest. Instead of "one fund (VGSH)" if we label this "My 2022 Treasury Bond Allocation/Purchases" then I am way ahead of your Money Market stuff. Then you compare treasury bond fund purchases with corp bonds, citing Dodix + PIGIX one could have done better. Or worse. There are over 15000 mutual funds; easy to go back and select one that may have done better to ones investment. I don't care. I'm talking about treasury bond purchases...not corporates, and have discussed rationale elsewhere. And you never have to "re-write history" as you don't post trades in real time, only stating such about three weeks later...so your history is always spectacular! Lastly, Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. OK to buy at lower and lower prices. I have stated this a thousand times also. R48 "Lastly, Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. OK to buy at lower and lower prices. I have stated this a thousand times also."I'm glad you added that last sentence, R. I had always been a little fuzzy on how P-U applied to bond funds. My understanding of it had seemed a little problematic, even counter-intuitive. Confusing b/c I figured one COULD P-U bond funds if further rate drops were anticipated. Good clarification.
|
|
|
Post by FD1000 on Dec 11, 2022 16:47:07 GMT
FD, I'm not going to comment, as you keep posting the same thing. You cherry pick the VGSH initial purchases and ignore the rest. Instead of "one fund (VGSH)" if we label this "My 2022 Treasury Bond Allocation/Purchases" then I am way ahead of your Money Market stuff. Then you compare treasury bond fund purchases with corp bonds, citing Dodix + PIGIX one could have done better. Or worse. There are over 15000 mutual funds; easy to go back and select one that may have done better to ones investment. I don't care. I'm talking about treasury bond purchases...not corporates, and have discussed rationale elsewhere. And you never have to "re-write history" as you don't post trades in real time, only stating such about three weeks later...so your history is always spectacular! Lastly, Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. OK to buy at lower and lower prices. I have stated this a thousand times also. R48 And I will say again that... 1) A generic poster who invested one time in 03,04,05 of 2022 in VGSH, lost money as of today, after 8-9 months while MM/CD/Tre made money with zero risk. 2) If you are a trader, which is what you're doing, then why would I use VGSH based on the rule, and wait 2 years for that? This is why posters(Mozart and habsui) who trade probably didn't use VGSH. So, either you are a trader or not.3) Why wouldn't I use well known MANAGED funds instead of index funds when it's obvious we had a turning point. I didn't look at 15K funds. Believe me, I can do better. I didn't even mention HY Muni which I bought. How about another easy one BOND(chart)? It made almost 2% more, too.4) My trades have nothing to do with this. My comments are generic. I mentioned CD/Treasu for months now, never owned them. I mentioned MM since early 2022, and I owned plenty of it until 11/2022. BTW, the purpose of this thread is to make more money in bond OEFs with reasonable risk/SD. Anyone who hold for years, no need to follow. If you want to make smaller/bigger adjustment, this is where to find it. You still have to do your own due diligence. Remember, when you trade something, you are the one who enter it. The idea is to discuss reasonable options and why. Bottom line: 1) I would not select VGSH any time in 2022. We need to move away from VGSH...please...we already discussed it on the other thread at 19 pages.2) I would not select VGIT as my goto fund several weeks ago or NOW, when I know about choices such as DODIX,BOND and better ones. R48: "bond funds, which are not growth instruments but contractual instruments" FD: I can debate the above too. PIMIX performance over 7-8 years was better than allocation funds and EM stock funds. FAGIX performance over several years is another proof. Look at a chart of MAINX for one month ( link). Myths can be broken with the right funds.
|
|
|
Post by habsui on Dec 11, 2022 19:38:03 GMT
FD, I'm not going to comment, as you keep posting the same thing. You cherry pick the VGSH initial purchases and ignore the rest. Instead of "one fund (VGSH)" if we label this "My 2022 Treasury Bond Allocation/Purchases" then I am way ahead of your Money Market stuff. Then you compare treasury bond fund purchases with corp bonds, citing Dodix + PIGIX one could have done better. Or worse. There are over 15000 mutual funds; easy to go back and select one that may have done better to ones investment. I don't care. I'm talking about treasury bond purchases...not corporates, and have discussed rationale elsewhere. And you never have to "re-write history" as you don't post trades in real time, only stating such about three weeks later...so your history is always spectacular! Lastly, Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. OK to buy at lower and lower prices. I have stated this a thousand times also. R48 And I will say again that... 1) A generic poster who invested one time in 03,04,05 of 2022 in VGSH, lost money as of today, after 8-9 months while MM/CD/Tre made money with zero risk. 2) If you are a trader, which is what you're doing, then why would I use VGSH based on the rule, and wait 2 years for that? This is why posters(Mozart and habsui) who trade probably didn't use VGSH. So, either you are a trader or not.3) Why wouldn't I use well known MANAGED funds instead of index funds when it's obvious we had a turning point. I didn't look at 15K funds. Believe me, I can do better. I didn't even mention HY Muni which I bought. How about another easy one BOND(chart)? It made almost 2% more, too.4) My trades have nothing to do with this. My comments are generic. I mentioned CD/Treasu for months now, never owned them. I mentioned MM since early 2022, and I owned plenty of it until 11/2022. BTW, the purpose of this thread is to make more money in bond OEFs with reasonable risk/SD. Anyone who hold for years, no need to follow. If you want to make smaller/bigger adjustment, this is where to find it. You still have to do your own due diligence. Remember, when you trade something, you are the one who enter it. The idea is to discuss reasonable options and why. Bottom line: 1) I would not select VGSH any time in 2022. We need to move away from VGSH...please...we already discussed it on the other thread at 19 pages.2) I would not select VGIT as my goto fund several weeks ago or NOW, when I know about choices such as DODIX,BOND and better ones. R48: "bond funds, which are not growth instruments but contractual instruments" FD: I can debate the above too. PIMIX performance over 7-8 years was better than allocation funds and EM stock funds. FAGIX performance over several years is another proof. Look at a chart of MAINX for one month ( link). Myths can be broken with the right funds. Congrats. Putting all your $$ into MAINX one month ago was a great move.
|
|
|
Post by FD1000 on Dec 11, 2022 19:41:52 GMT
R48: "bond funds, which are not growth instruments but contractual instruments" FD: I can debate the above too. PIMIX performance over 7-8 years was better than allocation funds and EM stock funds. FAGIX performance over several years is another proof. Look at a chart of MAINX for one month ( link). Myths can be broken with the right funds. Congrats. Putting all your $$ into MAINX one month ago was a great move. I wish I did, I only had it for 2 days, and I invested about 8%, much lower than my usual 15-20%.
|
|
|
Post by FD1000 on Dec 11, 2022 20:10:18 GMT
FD1000 : "When bonds had the biggest loss in decades and finally turn around, why would you go with the most conservative option = treasuries?" I'm not sure anyone knows bonds (or equities) have turned around. I can think of several reasons. 4% is a very good safe return. Many folks are happy with that for a portion of their AA. It can make taking RMDs less dramatic. It can provide a cash source for living expenses without disturbing more volatile holdings in this turbulent market. It can be money set aside for adding to equity AA. In short we all cannot trade in and out for a great TR. Yes I own treasuries now but have used maturing ones to buy into bond OEFs. You know I also do the HY muni trade with a portion of my portfolio as some "fun". There I said it. Let's wear my big picture analysis. Nothing is ever guaranteed...but, I saw on TV (one link) and read maybe 200 times that the first 6 months of 2022 were the worst in almost 5 decades. This should ring a bell = unique = once in a life for many investors. Bonds are contractual investments. This means, a good chance they will retrace all the losses when they turn around within 12-18. That's what happened in the past. But wait, these bond funds are now paying higher income, another boost. Are stocks really screaming cheap? SP500 PE still at 21 and 6 months treasury at 4.6 and about to pay 5%, all equal NOT CHEAP. So, no matter what Joe owns, Joe should buy in 11/2022 for a very good chance of making 10+% in bond funds with much lower risk/SD, especially, for retirees. Joe can hold these bonds for months, maybe years. Sometimes it is that "easy". Similar to sell bonds+stocks earlier in 2022. Why? Highest inflation in 40 years, supply chain, WAR, The Fed shouting constantly: WE ARE GOING TO RAISE RATES RAPIDLY".
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Dec 11, 2022 21:11:38 GMT
"Bonds are contractual investments. This means, a good chance they will retrace all the losses when they turn around within 12-18. That's what happened in the past. But wait, these bond funds are now paying higher income, another boost."
Don't you mean replace all the losses? Or erase them
|
|
|
Post by liftlock on Dec 12, 2022 1:41:07 GMT
Bonds are contractual investments. This means, a good chance they will retrace all the losses when they turn around within 12-18. That's what happened in the past. But wait, these bond funds are now paying higher income, another boost. This may depend on the bond fund. A bond fund may have been holding overvalued bonds that were trading well above par because interest rates were low. It seems unlikely that those bonds will fully recover their price declines unless interest rates go back to their old lows. Higher income will help to offset some of those losses.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Dec 12, 2022 13:37:37 GMT
Bonds are contractual investments. This means, a good chance they will retrace all the losses when they turn around within 12-18. That's what happened in the past. But wait, these bond funds are now paying higher income, another boost. This may depend on the bond fund. A bond fund may have been holding overvalued bonds that were trading well above par because interest rates were low. It seems unlikely that those bonds will fully recover their price declines unless interest rates go back to their old lows. Higher income will help to offset some of those losses. Active bond fund managers would have made adjustments rate hikes ago. Maybe not index huggers.
|
|
|
Post by Chahta on Dec 12, 2022 14:36:29 GMT
FD1000 , I agree that 2023 may be a good year for bonds. I have posted several times when people ask about it. I believe so much that I am doing it by putting my bond AA up to max. I made good money with BAGIX and PIMIX after the 2020 crash. liftlock , Any funds I follow or look at are all well below par now. It is easy to check in M* Portfolio tab. I cannot check each bond but it would be anomaly to find an old bond above par with the 2022 bond slaughter. If the funds hold the bonds until maturity there will be no loss, correct?
|
|
|
Post by FD1000 on Dec 12, 2022 22:15:29 GMT
"Bonds are contractual investments. This means, a good chance they will retrace all the losses when they turn around within 12-18. That's what happened in the past. But wait, these bond funds are now paying higher income, another boost." Don't you mean replace all the losses? Or erase them Yes, it's my English. ================= liftlock: A bond fund may have been holding overvalued bonds that were trading well above par because interest rates were low. It seems unlikely that those bonds will fully recover their price declines unless interest rates go back to their old lows. Higher income will help to offset some of those losses. FD: I will leave it for you and others to figure out which funds to buy. I only buy managed funds. The idea is to look at the big picture first and look for nuggets good categories and funds with great risk/reward. Hint: I don't put a lot of emphasize on par, duration, and yield. ============= Chahta: I agree that 2023 may be a good year for bonds. I have posted several times when people ask about it. I believe so much that I am doing it by putting my bond AA up to max. I made good money with BAGIX and PIMIX after the 2020 crash. FD: excellent. Just another thought. I never used max/min AA. I only looked what I want to achieve. Examples: 1) In 2000-2010: my intention was all risk, but I owned OAKBX+SGIIX because they met my goals and were better than many stock funds. 2) When I started changing from stocks to bonds gradually, PIMIX was my first bond fund and I loaded over the years all the way to 50+% because PIMIX made more than allocation funds with lower SD. So, what would I do now? mostly value stocks, CEFs, bond with better upside potential in lieu of some stocks + "safer" bonds with limited upside.
|
|
|
Post by liftlock on Dec 12, 2022 22:44:02 GMT
FD1000 , I agree that 2023 may be a good year for bonds. I have posted several times when people ask about it. I believe so much that I am doing it by putting my bond AA up to max. I made good money with BAGIX and PIMIX after the 2020 crash. liftlock , Any funds I follow or look at are all well below par now. It is easy to check in M* Portfolio tab. I cannot check each bond but it would be anomaly to find an old bond above par with the 2022 bond slaughter. If the funds hold the bonds until maturity there will be no loss, correct? Yes, that would be correct going forward for the bonds now trading below par and held to maturity. In fact, there would be a gain on those bonds upon reaching maturity. But those gains may or may not offset losses incurred since earlier this year.
|
|
|
Post by FD1000 on Dec 12, 2022 23:02:15 GMT
FD1000 , I agree that 2023 may be a good year for bonds. I have posted several times when people ask about it. I believe so much that I am doing it by putting my bond AA up to max. I made good money with BAGIX and PIMIX after the 2020 crash. liftlock , Any funds I follow or look at are all well below par now. It is easy to check in M* Portfolio tab. I cannot check each bond but it would be anomaly to find an old bond above par with the 2022 bond slaughter. If the funds hold the bonds until maturity there will be no loss, correct? Yes, that would be correct going forward for the bonds now trading below par and held to maturity. In fact, there would be a gain on those bonds upon reaching maturity. But those gains may or not offset losses incurred since earlier this year. The point is not to worry if the offset will happen or not, the point is to enter at the right time. BTW, in about 5-6 week PIMIX,DODIX,ORNAX made back about a 1/3 of their losses ( link).
|
|
|
Post by Chahta on Dec 13, 2022 0:49:04 GMT
FD1000 , I agree that 2023 may be a good year for bonds. I have posted several times when people ask about it. I believe so much that I am doing it by putting my bond AA up to max. I made good money with BAGIX and PIMIX after the 2020 crash. liftlock , Any funds I follow or look at are all well below par now. It is easy to check in M* Portfolio tab. I cannot check each bond but it would be anomaly to find an old bond above par with the 2022 bond slaughter. If the funds hold the bonds until maturity there will be no loss, correct? Yes, that would be correct going forward for the bonds now trading below par and held to maturity. In fact, there would be a gain on those bonds upon reaching maturity. But those gains may or may not offset losses incurred since earlier this year. Of course. Nothing is guaranteed in investing. Bond funds are subject to inflows and demand. That can affect prices too. The point is to buy cheap, which is below par. The M* Weighted Price will show if the fund holdings are skewed towards discount or premium.
|
|
|
Post by retiredat48 on Dec 13, 2022 2:35:11 GMT
at FD1000 ,...who posted: " Hint: I don't put a lot of emphasize on par, duration, and yield. "
R48 reply: I do...put a lot of emphasis on par, duration and yield. R48
|
|
|
Post by FD1000 on Dec 13, 2022 14:20:59 GMT
at FD1000 ,...who posted: " Hint: I don't put a lot of emphasize on par, duration, and yield. "
R48 reply: I do...put a lot of emphasis on par, duration and yield. R48 Let's test it. Can you tell me how the above predict performance + SD for the following funds and how you compare them? PIMIX,RCTIX,MAINX,RSIIX. This is similar to your thumb rule of duration+yield. I showed many times in the past how PIMIX didn't follow it. MAINX just made 34% in one month( chart) and a lot more than other EM funds (FNMIX). Can par, duration, and yield predicted it? I can also show how Munis had better risk-adjusted performance than treasuries/high-rated bonds for months. You also can't predict managed funds VS indexes. Finally, the above can't predict ST performance of months to come. Attachments:
|
|
|
Post by habsui on Dec 15, 2022 3:38:28 GMT
Bonds - FD went all in weeks ago at the perfect time. Who else followed or will?
|
|
|
Post by FD1000 on Dec 20, 2022 12:58:25 GMT
HY Muni T/A LT indicator signaled a SELL since last week. Interesting thing, the ST faster indicator, 3 line break, signals were slower to buy and sell. and longer term rates are going up, regardless of what the "experts" said last week. One ( example).
|
|
|
Post by FD1000 on Dec 20, 2022 22:59:22 GMT
ORNAX lost 1.5% in 3 days...wow...know when to hold them and when to fold them.
|
|
|
Post by retiredat48 on Dec 21, 2022 4:04:45 GMT
Bonds - FD went all in weeks ago at the perfect time. Who else followed or will? While FD (may) have pivoted back-and-forth between money market funds, and muni's, some on the forums have been trading TLT, 20 year treasury bonds, and doing quite well, thank you. Oh, those cap gains you can spend during XMAS season! R48
|
|
|
Post by FD1000 on Dec 21, 2022 14:59:10 GMT
Bonds - FD went all in weeks ago at the perfect time. Who else followed or will? While FD (may) have pivoted back-and-forth between money market funds, and muni's, some on the forums have been trading TLT, 20 year treasury bonds, and doing quite well, thank you. Oh, those cap gains you can spend during XMAS season! R48 Excellent, I love when investors make money, and more is better. But, here is the difference, I just sold 2 funds, each about 50%. What % did you invest in TLT?
|
|
|
Post by habsui on Dec 21, 2022 17:45:02 GMT
While FD (may) have pivoted back-and-forth between money market funds, and muni's, some on the forums have been trading TLT, 20 year treasury bonds, and doing quite well, thank you. Oh, those cap gains you can spend during XMAS season! R48 Excellent, I love when investors make money, and more is better. But, here is the difference, I just sold 2 funds, each about 50%. What % did you invest in TLT? If one makes 0.27% on 100% of PV, that's 0.27%. 15% on 10% of PV is (hold it) 1.5%.
|
|
|
Post by FD1000 on Dec 21, 2022 18:10:09 GMT
Excellent, I love when investors make money, and more is better. But, here is the difference, I just sold 2 funds, each about 50%. What % did you invest in TLT? If one makes 0.27% on 100% of PV, that's 0.27%. 15% on 10% of PV is (hold it) 1.5%. Absolutely, the main point is to show I'm committed when I invest, while using pyrup(or another way) with 1% and then another % don't tell much about someone portfolio. I prefer to make 5-7% with very low SD, and high conviction than maybe making -+10%.
|
|
|
Post by retiredat48 on Dec 22, 2022 1:28:31 GMT
Pyramid Up is not used for or apply to bond fund purchases.
R48
|
|
|
Post by FD1000 on Dec 22, 2022 16:20:42 GMT
Pyramid Up is not used for or apply to bond fund purchases. R48 We discussed it before R48: Pyramid Up only applies to stock fund investing, not bond funds, which are not growth instruments but contractual instruments. FD: this may be a good reason for vanilla IG bonds. The following funds had amazing performance: PIMIX(made more than SPY+EM stocks for years)...IOFIX(made 50% in less than a year)....MAINX(made 35% in just several weeks), CEFs are also bonds (PTY made more than SPY for several years) Below is a chart from 1/1/2010 to 1/1/2013 for PIMIX,EEM,PTY,SPY. PTY made the most, followed by PIMIX, SPY, EEM. I attached another chart with MAINX making over 35% and easily beating US stocks. Generic never worked for me.
|
|
|
Post by FD1000 on Dec 22, 2022 16:27:40 GMT
( www.fidelity.com/learning-center/trading-investing/bond-market-outlook?ccsource=email_weekly_AT) Key takeaways
* Bond yields are likely to remain relatively high at least through the first half of 2023.
* Higher yields enable bonds to once again play their historical role as sources of reliable, low-risk income for investors who buy and hold them to maturity.
* Opportunities may also exist in 2023 for managers of mutual funds that regularly buy and sell bonds to buy higher-yielding, lower-risk bonds at attractive prices.
* Professional investment managers have the research, resources, and investment expertise necessary to identify these opportunities and help manage the risks associated with buying and selling bonds when interest rates are likely to change.
* Moore believes that market conditions as 2023 starts are similar to 2019 and 2020 when bond indexes returned almost 10% after a big drop in 2018
FD: I agree and posted about it weeks ago.
|
|