Bad Years For US Treasuries Don't Mean Bad Years For Markets:

Ted

FYI: It’s a rare year when total returns on U.S. Treasuries are negative, but when they are, the ripple effect on global markets is potent.

Stocks, credit, high yield and emerging markets, in particular, suffer as investors bail out of the world’s safest and most liquid asset, pushing up the cost of money, squeezing liquidity and tightening financial conditions.

That’s the running assumption, and it’s setting the narrative for financial markets right now as the U.S. bond selloff gathers pace and Treasuries close in on what will be only their fifth year of negative returns since the early 1970s.
Regards,
Ted
https://www.reuters.com/article/global-bonds-vigilantes/column-bad-years-for-us-treasuries-dont-mean-bad-years-for-markets-mcgeever-idUSL8N1WL49E

Starchild

Ugh. My PONAX is taking a beating, but I guess most bond funds currently are. What's your take on keeping it for the long term Ted? Thanks, Starchild

Ted

@Starchild: I own PONCX, but I'm not ready to jump ship just yet! If I were you I'd hang in there The fund is still beating it's bogey, Bloomberg Barclays US Aggregate Bond TR USD.
Regards,
Ted

Starchild

Thanks Ted! I'm sticking with it too. This fund seems to zig zag year to year a bit. I'm sure it would blow up right after I sold it. I thought about VBTLX when I set up my bond allocation, mostly because of the fees and it was something I understood more, but it's currently not faring as well.