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Bonds HAMMERED Today

edited July 2013 in Fund Discussions
Hard to believe a 5% decline for EDV in one day! Even MINT and SHY declined. The world is upside down for fixed income investors lately. Every bond fund down today, seems like:



  • edited July 2013
    Meanwhile, in the real world (open end bond funds) junk's losses were very muted and many of the floating rates bond funds were unchanged.

    Edit: Personally, I would never touch a bond ETF, but then that's just me.
  • Yes, I'm feeling the pain. My overweighting in PREMX and my small stake in DLFNX are the reasons. Even MAINX. Usually, the losses from day to day at MAINX are more muted compared to the others. If I was in for the long haul (like myself) I think I'd be a buyer here at these levels.
  • edited July 2013
    I don't think you'll see the lowest rates again, but I don't think rates in the 2-2.5% range are over. Given momentum though, it may get to 3% real quick before heading back down.
  • edited July 2013
    Two months does not a market make. Should the trend continue a year or so, I'd guess that would be the first sustained increase in rates many of us have witnessed since we were sporting considerably less gray hair (and perhaps more of the stuff:-)

    Everything's been turned on its head. Hussman's most conservative fund, HSTRX, is off over 9% YTD (holds both gold & bonds) while his growth-oriented HSGFX is off only around 2-3%. As under the Volker-induced rate increases of the 80s, precious metals have gotten killed - some funds down around 50%. PRPFX is having its worst year in memory - off over 8%. A fund I consider a good proxy for a VERY conservative risk-averse investor, TRRIX, is positive - but only by a bit over 2%. And - hard to believe - DODBX is up over 14%, beating many equity funds despite its bond holdings. (Long time readers here will remember D&C as the guys who seemed unable to walk & chew gum at the same time a few short years ago:-)

    If you are in fixed income (hopefully on the shorter end) do not despair entirely. Your $$ is now earning & compounding at a much higher rate (comparatively speaking) than it was 15 months ago. Good timing on your part Charles and great work on the board. Thank you very much. Regards
  • Reply to @MaxBialystock: Max , I hope you're right on the long run. Will be dca as the fund drops. Recent purchase $10.30 & now at $10.23 ! OUCH!!!
    Have a good weekend, Derf
  • No one saw this coming? The Fed can only do so much with interest rates.
  • Mortgage rates locally were around 3.6-3.7% at the end of April/first week of May. Those places are now around or at 5%.

    As for Hussman, it's pretty impressive he still has as much AUM as he does.

  • Reply to @kv968: People have been calling for it for a couple of years and betting on it and being wrong.
  • edited July 2013
    choix, an income fund with equity holding, is up 18% YTD.
  • edited July 2013
    Holy Judas Priest. How come there's been ZERO mention of this fund before now? Interesting, to say the least. ...Looking. I see it owns a tiny position in Catalyst Paper. I recall owning TAVIX a few years ago, there was some deal in the works involving Catalyst. Are they out in B.C.? Anyhow, this is surely a unique fund! CHOIX.
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