Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Handy chart on interest rate impact from John's "Dangers Lurking In Bonds" post:
And from the Bloomberg post:
The 1,610 stocks in the MSCI World Index paid an average 2.7 percent of their share price in dividends as of last week, according to data compiled by Bloomberg. That compares with the 2.6 percent yield on the Bank of America Merrill Lynch Global Corporate Index of 10,034 investment-grade bonds and 6.1 percent for 2,652 securities in the Barclays Global High-Yield Index. The gap versus the junk-bond index is the narrowest since at least 1995, the data show.
On Steve Goldberg. I like the way he plugs Michael Hasenstab, manager of Templeton Global Bond A TPINX, but without plugging the fund. (It's how I'm coming to feel about Bill Miller and LMOPX.)
Is a 60/40 stock-bond mix the right balance?
My opinion: Only if it is dynamically allocated (about a mean of 60/40), actively manages against downside risk, and uses broad authority within each asset type.
And the last one on HY Bonds:
All else being equal, a bond with a higher coupon has a lower duration than a similar bond with a lower coupon. The reason for this relationship is straightforward: a bond with a higher coupon receives a greater cash flow in interim periods, whereas a bond with a lower coupon receives a greater percentage of cash flows at maturity.
Comments
http://online.barrons.com/article/SB50001424052748704372504578284113281612952.html?mod=djembwr_h
revise your portfolio for safer investment
http://www.kiplinger.com/article/investing/T052-C007-S003-economic-risks-receding.html
60/40 mix?
http://think.zionsdirect.com/2013/01/31/is-a-6040-stock-bond-mix-the-right-balance/
HY dangerous
http://blogs.cfainstitute.org/insideinvesting/2013/02/06/two-things-about-high-yield-bonds-investors-must-understand-today/
Handy chart on interest rate impact from John's "Dangers Lurking In Bonds" post:
And from the Bloomberg post: On Steve Goldberg. I like the way he plugs Michael Hasenstab, manager of Templeton Global Bond A TPINX, but without plugging the fund. (It's how I'm coming to feel about Bill Miller and LMOPX.) My opinion: Only if it is dynamically allocated (about a mean of 60/40), actively manages
And the last one on HY Bonds: Over my head, so more for me to study.
Good set of articles John. Thanks for sharing.