im thinking about selling logox fund and repacing it with hblix fund. im an older investor and my goal is to remain invested but with funds that have less downside risk. im thinking that with interest rates dropping hblix could be a good fund to gain more bond exposure. the other funds i own are DODBX LCORX MTRIX VGWLX . ive also considered buying JHQAX (but im thinking a balance fund that holds value stocks might hold up better in a selloff)} . i will appreciate all opinions and ideas as to what i should do.
Comments
d@ducrow - You are correct that HBLIX is a bit more conservative than LOGIX. It holds considerably more fixed income / bonds and a lesser amount of equities. Both look like decent funds. “Year-over-year” LOGIX is up 21.74% (M*) while HBLIX is up “only” 18.91%. Both have been hot. So how much real risk reduction? Your plan might resemble leaping from the red hot frying pan into the bubbling stew pot. A bit cooler …..
Sounds like the contemplated switch is based in part on the premise that interest rates will continue falling. Maybe they will … Personally, I’m not too sure about that. It’s not the Fed or politicians that will ultimately determine longer term interest rates (a popular misconception). It’s things like government debt-load, inflation, economic growth / recessions, geo-politics (including wars), the dollar on the foreign exchanges and “black swans” like the recent global pandemic. A 10-year bond at just over 4% seems very low to those of us here who came of age in the 70s when mortgages were running 15+%.
I don’t think you can go wrong adding to cash after a couple very hot years. I also like a toe-hold in the precious metals - however they’ve been bid up a lot lately and could suffer a big correction. There’s not much out there that looks cheap to me right now in either fixed income or equities. Use a portfolio analyzer as one gage of where you are on the risk spectrum.I note you own DODBX. Excellent fund. I owned it for many years before finally selling a year or so ago as part of a “consolidation” of assets under one umbrella.
Re Mike’s remark. if you type a fund’s symbol in capital letters the board’s software automatically highlights it and creates a link to a variety of sources. Good idea. I hadn’t paid much attention to that since I dwell mainly at the M* site and don’t mind entering symbols manually.
Good luck.