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Jonathan Clements: When Stocks And Bonds Yield Nothing
FYI: Historically, there have been times when the stock market's dividend yield was low. Historically, there have been times of modest bond yields. What's unusual about today? We have both at the same time -- and that puts investors in a tough spot. Regards, Ted http://online.wsj.com/articles/when-stocks-and-bonds-yield-nothing-1407027928#printMode
Today is a challenging environment for those who need income from bonds. Treasury and CDs provide low returns while higher yielding junk bonds pose more downside risk as shown this week. Still think investment grade, short to medium duration bonds are reasonable choices in the near term providing that the rates does not go up too quickly. Favorites choices are Vanguard short term investment grade bond, VFSTX, and the intermediate term bond, VFICX.
I have been watching Dan Fuss' LSBRX, and how he is positioning the fund. Several of his interviews have been posted here.
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I have been watching Dan Fuss' LSBRX, and how he is positioning the fund. Several of his interviews have been posted here.