I know it's been a rocky road for all fixed income but I'm wondering if I should stop getting 'jabbed' with my TRP Ultra Short fund. I started investing in it over a year ago and the slight NAV fluctuation keeps me under my initial investment. Wonder if I'm better off making no $$$ in the Money Market fund at TRP...?
Frustrating to watch this drop $75 ...I accept drops 10x's worse in my investments but just gets frustrating!!!!
Comments
I can’t offer any insights into your dilemma. Personally, I hold little cash - and what I do hold I pretty much “write-off” as a 0 contributor to my bottom line. I realize this isn’t the normal approach. Perhaps those who do attach importance to interest earned at the short end of the rate curve will share their best ideas. I held TRP’s TRBUX, which I’d guess is the lower contribution relative of TRSTX. I thought it a fine fund. They’re a conservative lot and won’t take undue risk. If the Fed ever gets off their a*** and starts raising rates (widely expected) your fund will begin to perform better.
On the wider interest rate scene … The 10 year has dropped to 1.86 - 1.87% today on global uncertainties after topping 2% recently. That’s helping funds that hold longer dated investment grade U.S. debt.