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Get out. Many international bond funds are unhedged to USD. In effort, the investors incur additional risk with respect to geopolitical, currency fluctuations, and credit quality. Since early this year, the dollar has been rising. At least two more rounds of rate hike is coming this year, the safer Treasury would be more attractive option.
Along the same vain, EM local currency debts got hit hard as rise of USD and investors fleeting this sector. Same pattern unfolded during 2008 credit crisis. Small position I held in Pimco EM Local currency bond fund lagged over 20% for the year. The only saving grace was the Fed who cut rates quickly, and the fund rebounded in 2009.
Thanks for the reply. Yet, I'm needing all the yield I can get. 14.2% of RPIHX is "other." WTF? Convertibles? Shorts? I'm planning to put big chunks into TRP domestic junk. TUHYX. Nothing in it yet. Other current bond holdings are PRSNX and PTIAX.
Is your goal only to withdraw yield in retirement? I believe concentrating or limiting investments to yield bearing investments is a huge mistake. Total return is what matters.
Goal is to leave the portfolio for wifey. Following my brother's advice, I'll keep 30% in equities for growth, to keep up with inflation, hopefully more than that. On the other side of the equation is bonds, aiming for 70% over there.
Comments
Along the same vain, EM local currency debts got hit hard as rise of USD and investors fleeting this sector. Same pattern unfolded during 2008 credit crisis. Small position I held in Pimco EM Local currency bond fund lagged over 20% for the year. The only saving grace was the Fed who cut rates quickly, and the fund rebounded in 2009.