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Junk-Bond Fund Withdrawals Reach Highest Since August
catch, The suspense is killing me. Always, always - Stay tune for next week's episode. Will catch sell his remaining bonds and go 99% equity. Will he even sell his FSICX? Tune in next week for the continuing story of "Funds Boat".
But seriously, I have held a lot of FSICX since I noticed it held up in 2000-2002. Then my heart sank as I watched in 2008. It recovered and now I find myself too fond of the old darlin'. What will catch do? Stay tuned?
I rode out the storm in '08. Sort of no choice in the matter. Hope for the best, or exit the Market at the lowest low. Like shooting yourself in the foot. Glad I did not go away. But I'm owning lots more bonds now: 47.76%, of various types, but mostly EM. (PREMX.)
Given the still rather illiquid nature of the EM bond market, those who continue to hold EM bonds definitely should be willing to accept a difficult period, but I think they present a compelling long-term story. In 2008, funds such as PREMX and TGINX bottomed before the market did, as can be seen in the chart below.
I don't get it. Only a week or two ago, T.Rowe Price and Vanguard closed their high yield bond funds to limit the heavy inflow. Now the investors are leaving because of the current environment? What is the next stop - gold?
Comments
1 trillionth of that was our house; and maybe more to come next week, too.
But seriously, I have held a lot of FSICX since I noticed it held up in 2000-2002. Then my heart sank as I watched in 2008. It recovered and now I find myself too fond of the old darlin'. What will catch do? Stay tuned?
http://finance.yahoo.com/echarts?s=TGINX+Interactive#symbol=tginx;range=5y;compare=premx+^gspc;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;