Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Reply to @FundStudent: I have always kept my positions on a very short leash. When junk bonds are in a trending mode, as they have since June 6, I use a mere 1% to 1.25% stop. As for PONDX, I may use a 1 and 1/2% or 2% stop. Never let a winner …
What I find interesting is how strong the MBS market had been weeks prior to the Fed announcement, most especially non-agency, and how much stronger (at least so far) it has been afterwards. So although targeting the MBS market was expected the dep…
This freight train has actually picked up speed along with its brother ANGIX. And MWCRX is finally picking up some stream. And junk just keeps chugging along. If this keeps up, this long time Barry Goldwater Republican may have to actively begin …
Reply to @Investor: I am glad to see someone here taking this equity bull market by the horns. I would love to join you but need to see my equity curve in bonds turn tail first.
It appears no one, - here, there, or anywhere - is prepared for a resurgence in equities. But then I guess I shouldn't talk because even though I am a bull, I sit here with 100% in bonds. And why not, when you can get almost equity-like fund ret…
I was more than thrilled when I saw today's prices. Everything in bondland outside of Treasuries was on fire (junk, emerging markets, RMBS) with PONDX being my best % gainer. I'm about 30% there and should be higher but see no need to ride myself …
Reply to @scott:
Scott agree with pretty much everything you say especially the last paragraph
>>> I kinda wonder if people see performance from fixed income and they don't have really any idea about how the fixed income markets work as…
Conventional wisdom says there are two scenarios at play here and I waver between which one will prove correct. One is that sooner than later as stocks continue to rise inflows will revert and in a large way back in favor of equities. That is espe…
Here's some insight into how the manager of PONDX is structuring his fund.
http://www.moneynews.com/InvestingAnalysis/Gross-Pimco-Bond-King/2012/08/29/id/450230
Thanks bee, nice cogent comments. Without getting too political, I feel Romney would be good for equities and Obama bonds. That recent selloff in Treasuries many said was the Ryan effect. For better or worse depending on your political persuasi…
I had mentioned this fund a few weeks ago but have since lightened up considerably moving much heavier into PONDX. I had thought MWCRX's exposure to residential mortgage backed securities would give it more of a lift but the only thing lifting is P…
Reply to @catch22:
If I voted with my pocketbook instead of my heart and head, I would be 110% behind President Obama and more stimulae, bailouts, and easy money. From December 2008 to the present has been my best stretch ever (profit-wise albeit…
The link below is the lowest rated sector in junk land. Unlike the overall junk bond market this sector did give a heads up via declining prices prior to the last two recessions. Obviously it can change in the blink of an eye but no recession loo…
Reply to @claimui:
I have never been a fan of annuities, especially the type where you never see your principal again. But playing around with the numbers in the link and a retirement age of 70 1/2 shows a 10.64% annual return. That's almost tem…
Reply to @andrei:
andrei, its mangement team is one of the best in the business and the brains behind the Metropolitan West Total Return Bond Fund (MWTRX) MWCRX is a relatively new fund with a smallish asset base and they are big into non agency …
Reply to @msf:
I simply believe that RMBS have more juice going forward than junk bonds where every Tom, Dick, and Harry has run seeking yield. Where were they in December 2008 or 2009, still hiding in the bunkers with their cash. Ask Tom, Dick, …
Reply to @fundalarm:
Many thanks, and great memory. I abhor closed end funds because of their volatility compared to the open end universe and their propensity to dance around premiums and discounts to NAV. I have to admit, the charts of JMT a…
Catch, what a super memory about changing my handle to Stockster. I did go a bit into individual stocks and to be perfectly honest stocks aren't my thing. I don't have the patience required. That's why this time around it will be equity funds lik…
I was surprised how many European funds have double digit gains in 2012, primarily thanks to the past month. I think I better get aboard. Reminds me of muni bonds in early 2011 when the smart money was scooping them up while the dumb money was sel…
Dian, hope you can kick back and enjoy life in your golden years. However, I would be real wary of being bombarded with advice from here and there because in many cases you will be receiving very biased advice that may not be suitable for your part…
Cathy, shouldn't you be asking this question to your Scottrade local branch??? I've been with Scottrade for over a decade and find their customer service to be top notch.
Reply to @msf: Correct, late September and right at the beginning of October. I've looked a little closer and just maybe this fund does makes sense and could be an integral part of my portfolio when I retire (if ever) from active trading and if r…
I simply do not see the allure of this fund. If we get a decline in the junk bond market this fund will lose value as it did last October and so much for it being a substitute for cash. While the October junk decline didn't go anywhere what happen…
Last time there actually was a buying opportunity of a lifetime - early March 2009 - the author was looking for a Greater Depression.
http://seekingalpha.com/article/121726-recent-policy-decisions-and-a-greater-depression
The so called experts at …
Yes, Junkster from old board. Believe it or not, I couldn't recall that handle (or I would have taken it) when I signed up for this board recently. Won't be here too long, kind of my last gasp on discussion boards as I fade into the sunset. Not …
Reply to @Investor: Nice post Investor. I agree we shouldn't get all lathered up about this fund until we see how it handles a bear market. Adjusting for dividends, this fund declined around 1% during the nasty junk bond correction late last sum…
Contrarian call indeed. Best of luck. Fund is negative YTD, one year, three year, five year, and although positive 10 year, it still lagged the vanilla S@P over that period.
Catch, if when you clicked on the link, it required a registration you can put in any e-mail address, valid or not. As for my junk mix, I pretty much stick with whichever one has the most momentum but I combine that with a volatilty scan as I don'…
Thanks Catch, I like your link because it shows a chart from 96. I get my data and chart (it only goes back two years there) from the BoA/Merrill site at the link below. In the top box where it reads Index/Bond ID the symbol to use for the Merril…
Am I missing something here?? I thought Schwab did have short term redemption fees
of $49.95 as shown below from their website. That compares to $17 at Scottrade and if I recall correctly when I was at Fidelity it was $75. Then at Fidelity if y…
Reply to @David_Snowball: Many thanks David, my bad as I really didn't dig into RPHYX before posting. Indeed, *considerably* less volatile than STHBX. RPHYX also handled the decline in the traditional junk bond market last August-October with gr…
IMHO, you can't beat Scottrade if you want to consolidate. They are far better than both Fidelity and Schwab if only because they have lower commisions should it ever be necessary to sell within 90 days of purchase.
I am not a fan of short term high yield junk bond funds. Parking cash or otherwise, you would be better off just buying a regular junk bond fund. There really isn't all that much difference in the volatility of the two breeds of junk bond funds, a…
