.....I'll borrow a lyric piece from dear Mr. Bob Seger:
Wish I didn't know now what I didn't know then. Against the wind. We were runnin' against the wind.The lyric seems to sum up at least some facets of personal investing, eh?
I've been reading the threads related to Mr. Snowball's June commentary and the threads about what is overpriced or not.
As to bonds of many flavors (currently excluding high yield); if someone has not been watching, bonds have been getting a pretty face slap for the last month or so. This action is also reflected in pricing for the utility and real estate sectors in general. Pehaps Ms. Yellen and company won't have to rise interest rates via Fed. actions.
The below link for LQD is very representative of investment grade bond sectors, which includes the Treasury issues.
For those who review technical circumstances, I will note that the 14 relative strength for much in this bond area is attempting to travel to the low 30's area. For technical folks, this is approaching a "buy" area. We will see, eh?
LQD 50,100,200 day for one yearThe below link to M* categories reveals the weak areas (those related to interest rate sensitivity).....scrolling down to bonds and then further down to sectors.
M* category returns YTDThe good news for our house is that we rotated away from many bond holdings over the past year; but still have about 35% in mostly investment grade holdings.
I suspect many of the conservative allocation funds are also feeling a negative affect from lower bond prices.
The hot money will flow to the best pricing. I can not know that path today; but the recent flight has been away from many bond types. We'll keep things in place for today, knowing that most of our bond holdings are flat to slightly negative YTD, as of June 3. Our equity holdings VTI / ITOT types, healthcare funds and stocks', and HEDJ keep our account soundly positive for the time being.
As to the discussion revolving around liquidity mentioned in the June MFO commentary (the next time the markets get smelly).........well, regardless of what many (professionals) may be thinking today, about actions they may take in the future during a smelly equity/bond market; I do most seriously believe that old habits are hard to break and scared money would and will move to government issues for safety.
Well, didn't say much; just thinking outloud with words here.
Pillow time here, as 6am will be here too soon.
Say goodbye, Catch.......
Goodbye
