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Take a Profit on VIPIX?

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Comments

  • Maurice, I think there are others wondering the same thing. (As well as where to put it if you do take some profit.)
  • Hi Maurice and Anna,

    Mr. Bond here, "Catch said jokingly." Well, this is currently the "house of bonds".

    I do recall a similar question in the late summer; and I noted, not yet; if my recall is correct.

    We still hold direct TIPS funds, and more are within our numerous bond funds, too
    One would discover than many of the investment grade bond funds this year may tip their hat to the TIPS holdings for the YTD returns.

    Personally, I don't find too much real happy in the equity area as has been related to the ongoing problems discussed here on a regular basis.

    Anna's point is probably the best consideration. If you took your profits only off of the table from VIPIX; where to put the monies.

    Your portfolio mix will have to be your guide, based upon your preference. If VIPIX is 20% of your portfolio, then other considerations would be in place, eh?

    The most recent TIPS auctions were well subscribed (plenty of buyers). I don't recall which duration, but one series of auctions resulted in a -.87% yield.

    Not unlike many other IG bond areas this year.......when folks what them, the yields continue lower and the prices higher. I have no regard at this time how low the yields go; 'cause the money is in the price increases....at least at this time.

    Could any of this run in all types of bonds start to go the other way? We know that day may come............but, how far away may that day be? 6 months; 1, 2, 3 years.
    Any kind of magic may evolve to help the financial healing; but until there is clearer sign of that; our house will remain in the "bond box".

    So, this house will hold tips until the area appears to sour and there is a better place for the money; at least in the eyes of this house.

    If the linker here is working again, you may check these periodically and/or also using Falcon's Eye at this site. There are different maturity periods:

    STPZ
    LTPZ
    TIP

    Regards,
    Catch

  • I sold my entire position with VIPIX in spring when yield went negative, but the total return continues to move upward - YTD is over 11%! Who know what TIP funds hold for next year.
  • edited December 2011
    The user and all related content has been deleted.
  • Hi Mo, happy holidays.
    Here's my allocation according to M* Xray
    Cash 11% (I don't own a money market fund)
    US Stocks 18%
    Foreign Stocks 6%
    Bonds 64%
    Other 1%

    Sectors:
    35% Cyclical - 46% Sensitive - 19% Defensive

    Stats:
    Price/Prospective Earnings 11.44
    Projected EPS Growth - 5 yr % 10.92
    Price/Book Ratio 1.64 0.92 Yield % 2.91 1.61
    Return on Assets (ROA) 8.41
    Average Market Cap $mil 24,926.77
    Return on Equity (ROE) 19.18

    Largest funds:
    TRP New Income
    http://www3.troweprice.com/fb2/fbkweb/composition.do?ticker=PRCIX
    TRP Personal Strategy Income
    http://www3.troweprice.com/fb2/fbkweb/composition.do?ticker=PRSIX

    I have no intention of increasing the equity allocation. For at least 5 years now everyone has been saying that interest rates can't go any lower, they have no place to go but up.
    http://finance.yahoo.com/q/bc?s=^TNX&t=5y&l=on&z=l&q=l&c=
    Bonds have trounced stocks over the past 5 years.
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