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My worst performer today: PRAFX (real assets) -1.94%
My best performer today: DODBX (balanced) +.34%
Growing belief that a Fed rate hike is coming in June caused the Dollar to strengthen and EM markets, along with international bonds, to sink. Something tells me it ain't gonna happen in June, but I could be wrong.
@Hank Today Worst TGLDX Change -2.45 (-6.19%) Y T D +58.30 Mid 30's M*Standard Deviation Precious Metals on a tear for most of year Best ETNHX Change +0.51 (+2.87%) Y T D -22.44 M*3YR S D 30.73 Health/Bio just the opposite Largest BRUFX Down 3.87 (- 0.76%) Y T D +2.20% M * 15 YR 15.07% return @13.05 S D Cash (25.83% ) ,utilities,gov bonds have kept Fund on plus side."Taper Tantrum"susceptible ? http://portfolios.morningstar.com/fund/summary?t=BRUFX®ion=usa&culture=en_US
A Refresher/Primer on C E F's In a Rising Rate Environment.
Closed-end funds can provide much better income yield than you’d get from most bonds or certificates of deposit. But be sure you weigh the risks
A second key feature is debt. Many CEFs borrow money to buy securities. That can boost yield by adding to the number of holdings in a CEF that are paying dividends, interest or capital-gain income. But it can also magnify losses.
If interest rates rise, longer-term bonds and additional rate-sensitive securities will likely lose value. The relative cost of a CEF’s debt would rise. It’s like having fixed mortgage payments on a house that loses value. Your mortgage payments don’t decline, but your collateral is worth less.
Taper Tantrum Redux ? Throwing a Taper Tantrum ( an Elementary Review ) You have probably heard that the stock and bond markets are rather fickle. They are reactive and overall not a very good indicator of economic health. What happens after the Fed starts to taper off easing is just that: a reactive response to something that might be bad.
Back in 2013 the Fed turned off one of their QE programs (or rather tapered it off). When that news was announced people panicked and money started pouring out of the bond market. The result was that bond yields increased dramatically. Since that time things have largely leveled out and investors have realized there was no need for a massive panic.
Comments
Worst
TGLDX Change -2.45 (-6.19%) Y T D +58.30 Mid 30's M*Standard Deviation
Precious Metals on a tear for most of year
Best
ETNHX Change +0.51 (+2.87%) Y T D -22.44 M*3YR S D 30.73
Health/Bio just the opposite
Largest
BRUFX Down 3.87 (- 0.76%) Y T D +2.20% M * 15 YR 15.07% return @13.05 S D
Cash (25.83% ) ,utilities,gov bonds have kept Fund on plus side."Taper Tantrum"susceptible ?
http://portfolios.morningstar.com/fund/summary?t=BRUFX®ion=usa&culture=en_US
A Refresher/Primer on C E F's In a Rising Rate Environment.
Closed-end funds can provide much better income yield than you’d get from most bonds or certificates of deposit. But be sure you weigh the risks
FUNDS
Want Income? Closed-End Funds Offer Yield, But Beware Of The Risks
PAUL KATZEFF 6:01 PM ET © 2016 Investor's Business Daily
Danger In Debt
A second key feature is debt. Many CEFs borrow money to buy securities. That can boost yield by adding to the number of holdings in a CEF that are paying dividends, interest or capital-gain income. But it can also magnify losses.
If interest rates rise, longer-term bonds and additional rate-sensitive securities will likely lose value. The relative cost of a CEF’s debt would rise. It’s like having fixed mortgage payments on a house that loses value. Your mortgage payments don’t decline, but your collateral is worth less.
“The average CEF has almost 33% in leverage,” said Brock Moseley, founding partner of Miracle Mile Advisors, in Los Angeles. A CEF might even need to sell assets to help make its debt payments. “When rates rise, that hurts.”
http://www.investors.com/etfs-and-funds/mutual-funds/want-income-closed-end-funds-offer-yield-but-beware-of-the-risks/
Taper Tantrum Redux ?
Throwing a Taper Tantrum ( an Elementary Review )
You have probably heard that the stock and bond markets are rather fickle. They are reactive and overall not a very good indicator of economic health. What happens after the Fed starts to taper off easing is just that: a reactive response to something that might be bad.
Back in 2013 the Fed turned off one of their QE programs (or rather tapered it off). When that news was announced people panicked and money started pouring out of the bond market. The result was that bond yields increased dramatically. Since that time things have largely leveled out and investors have realized there was no need for a massive panic.
Read more: What Is The “Taper Tantrum” And Should You Fear It? | Investopedia http://www.investopedia.com/articles/personal-finance/060415/what-taper-tantrum-and-should-you-fear-it.asp#ixzz493ycl500
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