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OMG, the Catch household go'in to be without bonds by week end.....perhaps

catch22catch22
in Fund Discussions
Our house has not been without some form of bonds for 20 years.....well, I really don't recall.

The existing bond exposure has been FCBFX of recent. The graphic link below indicates the recent (1 year) of this holding. Corporate bonds have held fairly well for the near term past, but are having a difficult travel recently. Investment grade corporate bonds had a big face slap today, after having a slight recovery for a few days. February 14 found the relative strength move below 30 and recover some. But, one can see the path of the 50 and 100 day relative to the 200 day moving average. I suspect I'll find about a -2.4% YTD including today.
If we sell FCBFX tomorrow to cash, we'll be at 55% cash, 45% equity; and of this equity percentage being technology, healthcare and global sm/mid cap. The cash? Don't know where it will travel at this time.

http://schrts.co/8Kc4dr

Oh, well.....still interesting times.
Take care,
Catch

Comments

  • JunksterJunkster
    edited April 2018
    Nothing you don’t already know but a few bond funds in the bank loan and non agency rmbs categories are on pace for 5% to 6% returns this year. Of course how that actually plays out is snyone’s guess. On the bright side, some of Fidelity’s money market funds are closing in on 2% now yielding over 1.90%
  • catch22catch22
    edited April 2018
    Hi @Junkster
    Even the default gov't. money market used for a brokerage account at Fidelity have a current yield of 1.3%. Won't beat inflation, but better than going backwards plus inflation. For those unaware, technically; when one has a Fidelity account, the account is a brokerage account from which one travels their monies to wherever. Many years ago the brokerage feature for an individual account had to be requested as an "add-on".

    A benefit for us is that all invested monies are tax sheltered accounts and that we have so many choices of etf's and funds with Fidelity. So, to the buy/sell side of moving here or there does not have any current tax implications for us.

    To me/us the D.C. turmoil added another layer for investments past the fundamental/technical aspects of investing and the intuition.

    Add: LQD is down -.28% as of this write at 10 am, EST.
    ----- down -.47% at noon
    ----- down -.38%, close April 19

    Take care,
    Catch
  • hank
    edited April 2018
    You mean you’re gonna sell the ol’ bond boat? !!!

    Have to say this “bond burp” has to be the most overly predicted event in the history of investing. I swear folks back in FA days were already predicting it.

    Dunno where it will go, but was amused to see the 10 year at 2.94% at one point today. Fortunately, I did my magician’s (disappearing) act and the GNMA’s I went into 2-3 months ago as a “safety net” have long since been unloaded.

    No plans to sell anything else however. RPSIX before today was off only a quarter percent. DODIX about 1%. Both easy to digest. Got a little cash in a short corporate (OUSGX) and it’s been hit pretty good for a shortie. Guess it was off more than a half percent as of yesterday.

    Thanks for the post @catch 22 and for the insights @junkster.

  • VintageFreakVintageFreak
    I've never invested outright in any bond fund except for RPHYX and RSIVX. That's why I go balanced funds so I own bonds.

    I don't get "investing" in bonds. Feels completely counterintuitive.
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