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How are you using global / international bonds in your portfolios?
I'm mostly in bonds now, in retirement, but with a 32% exposure, still, to equities. Almost all of that is in PRWCX. Best move I ever made. (Of course, I'm watchful. Nothing lasts forever.) I want the income, though I've not tapped into any of it, yet. PRSNX is solid. Almost half of my total. My other bond fund is PTIAX. Great ratings, and higher income per share than PRSNX.
”For no other reason but for diversification ... “
Mike’s is probably the best reason. But there might be a couple others: (1) You might want to “juice” the fixed income portion of your portfolio by adding some additional risk. International investing entails more risk along with greater potential long term return. (2) You might expect the Dollar to depreciate against other currencies in coming years.
How? - I’ve been committing 7-10% of my portfolio to international & global bond funds, including EM, for as long as I can remember. Today they comprise 10%. Currently hold two: DODLX, PREMX
Comments
Still holding eem
No bonds
25s% eem distribution in 401k
The “scent in the wind”?
- Trump: Dollar Getting Too Strong https://www.thestreet.com/markets/trump-dollar-1488402
- Trump Thinks Dollar Too Strong, Blames Fed https://www.reuters.com/article/us-usa-fed-trump-idUSKCN1TQ2FP
- Trump Tanks Dollar After Saying It’s Too Strong https://www.cnbc.com/2017/04/12/trump-tanks-the-dollar-after-saying-its-getting-too-strong.html
Trump Says Dollar Too Strong https://www.cbsnews.com/news/trump-dollar-too-strong/
- Trump Wants Dollar To Be Weak - Here’s Why https://www.washingtonpost.com/news/wonk/wp/2017/04/12/donald-trump-wants-everything-about-america-to-be-strong-he-just-announced-a-big-exception/
How? - I’ve been committing 7-10% of my portfolio to international & global bond funds, including EM, for as long as I can remember. Today they comprise 10%. Currently hold two: DODLX, PREMX