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Mutual Funds for the rising interest rates envirnment


Which Mutual Funds do you see as the potential for holding if we are about to enter a rising interest rate environment (bond/stock) ?


  • I'm puzzled by the question. I mean, we do our best to do our homework, due diligence, to find the mutual funds which have great track records, are suited to our goals and risk tolerance. I confess I'm not an expert, so I trust the Fund Managers to deploy my money, and everyone else's who invest in the fund, with knowledgable deftness regarding issues like inflation, political risks, dollar strength and weakness, and whether to play defense or go on offense and be aggressive, when circumstances warrant it. I just think it's almost impossible to be reacting in a meaningful way to global macro headlines. Buy low, sell high. If inflation takes hold--- or God forbid--- STAGFLATION---- the cycle will have to play out. Hopefully, we're paying attention and can make our own individual informed decisions as to whether we want to hide in Treasuries or... whatever. I do believe it is wisest to be moderate, not trying to shoot out the lights in the arena, or "shoot the moon." Cover as many bases as you can. Do not expect skyrocketing profits--- as long as you're being PRUDENT. Is your time-horizon short? Then priorities and strategies will be different than a lot of us.

    I'm retired but have my eye on the future, for my heirs. So I'm less conservative than I'd be, otherwise. Still, I own more BONDS than I did just 4 or 5 years ago. Yes, bonds have almost become "return-free risk." Giggle. They pay very little these days, with the global ZIRP being embraced by governments around the world. But the ballast in my boat feels comfortable. And I am still exposed to stocks: 42%. So I'm still grabbing SOME of the stock run-up. At this moment, Morningstar X-Ray tells me my profit will match the SP500 going out 5 years from now, in terms of projected earnings per share growth. And my projected YIELD over the same period, looking ahead five years, = 58% better than the SP500. I'm pleased. I keep in mind the words from the Springsteen song, "Badlands."

    "Poor man wanna be rich,
    Rich man wanna be king,
    And the King ain't satisfied till he rules everything."

    ....Ya, that's NOT me. And that's OK. All there is left to do is to be thankful. If things go South, then I'm screwed. But there are some things I can do to mitigate that. Worrying about my portfolio vis-a-vis inflation is not a thing I can control very well. Although I recognize that inflated prices probably will show up in the share prices in the funds I own. :)

  • edited July 2021
    MAV123 asked: "Which Mutual Funds do you see as the potential for holding if we are about to enter a rising interest rate environment (bond/stock) ?"

    With respect to bond OEFs, I would definitely check out CLMAX. I has a history of performing well in a rising interest rate environment, if my memory serves me right.

  • IVOL is interesting:
    But that assumes we are in a rising interest rate environment.
  • Crash said:

    I'm puzzled by the question. ...

    I asked the question because so far we have had a dropping yield environment from 1982 through today. Also in the 1970s, we had to deal with the spike in interest rates. Most of the great funds covered on this site are relatively new. This chart shows the historic environment.
  • How long before we go NEGATIVE ?!!!
    Stay Kool, Derf
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