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The entire investing world has been telling us to invest in short term bonds since the great recession. It pains me greatly to see how short term bonds have performed against long term bonds.
Of course I'm not invested in a fund that's returned 8% over 5, 10.5% over 10 and 8.5% over 15 years. Because I listen to reason and reason said if you owned long dated bonds in your portfolio then you are an idiot.
Well, fact of the matter is I AM an idiot, but for the exact opposite reason. As long as I do not invest in WHOSX, it will continue doing well.
The entire investing world has been telling us to invest in short term bonds since the great recession. It pains me greatly to see how short term bonds have performed against long term bonds.
@VintageFreak...Actually not true...at least one person has been advocating LT Treasuries for some time now.
I looked at this last year and read all of Hunt's commentaries. Even before corona he believed that huge federal deficits will not cause inflation because the government will suck all of the credit out of the system the economy will not expand. Consequently interest rates will stay low or go lower.
If you believe this thesis there are far cheaper ways to implement it however. EDV and ZROZ have far lower ERs.
I had also previously noted that EDV, TLT and ZROZ can be very hot potatoes to manage and require a close watch and what may adjust their directions.
***** It's not what you look at that matters, it's what you see. *****
Henry David Thoreau
I personally adjust this, for investments, to; it matters to me where I look, as I want to "see" actions of other areas where I may never invest; but need to know the actions.
Everyone get together, whenever, and tell me when is a good time to buy WHOSX. I guarantee it F up the universe after I buy. I have superpowers of the wrong kind.
Robert Kessler - gotta hand it to him. My hope is when I retire it will be the right time to buy WHOSX because one is supposed to me more invested in bonds than stocks at that time.
How many times have we all said: "Have a PLAN, and stick to it." That doesn't mean stick to it despite the fact that circumstances have fundamentally changed, of course. (I think the Zurich Axioms are a good touchstone.) And diversification is important, not over-diversifying so that the result is "di-worse-ification." Eh??? WHOSX? That fund is doing better than gangbusters, lately. AND back in 2019, too. The YTD gain on that thing is bigger than God's ego.
Comments
Of course I'm not invested in a fund that's returned 8% over 5, 10.5% over 10 and 8.5% over 15 years. Because I listen to reason and reason said if you owned long dated bonds in your portfolio then you are an idiot.
Well, fact of the matter is I AM an idiot, but for the exact opposite reason. As long as I do not invest in WHOSX, it will continue doing well.
https://mutualfundobserver.com/discuss/search?Page=p2&Search=kessler
If you believe this thesis there are far cheaper ways to implement it however. EDV and ZROZ have far lower ERs.
Bee, I recall you've long been aware of the possibilities of using EDV or related. Thank you for the link.
I place the below again from a March 20 post.
A few views from bondland:
DAY(March 20) / WEEK / YTD
--- MINT = -1% / -3.6% / -4.1% (Pimco Enhanced short maturity)
--- SHY = +.27% /+.24% / +2.5% (1-3 yr bills)
--- IEI = +1.2% /+.7% /+5.2% (3-7 yr notes)
--- IEF = +2.6% /+1.5% /+8.4% (7-10 yr notes)
--- TLT = +7.5% / +3.6% /+18.1% (20+ Yr UST Bond
--- EDV = +7.15% / -.23% / +19.8% (Vanguard extended duration gov't)
--- ZROZ = +8.93% /+2.27% /+22.3% (UST., AAA, long duration zero coupon bonds)
***Other:
--- HYG = -2.24% / -12.9 / -20% (high yield bonds, proxy ETF)
--- LQD = +1.6% / -13.25% / -16.2% (corp. bonds, various quality)
--- LTPZ = +12.3% /+4.3% / +3.5% (UST, long duration TIPs bonds
I had also previously noted that EDV, TLT and ZROZ can be very hot potatoes to manage and require a close watch and what may adjust their directions.
***** It's not what you look at that matters, it's what you see. *****
Henry David Thoreau
I personally adjust this, for investments, to; it matters to me where I look, as I want to "see" actions of other areas where I may never invest; but need to know the actions.
Take care,
Catch
Everyone get together, whenever, and tell me when is a good time to buy WHOSX. I guarantee it F up the universe after I buy. I have superpowers of the wrong kind.
Robert Kessler - gotta hand it to him. My hope is when I retire it will be the right time to buy WHOSX because one is supposed to me more invested in bonds than stocks at that time.