S*****0
发帖数: 816 | 1 What is the difference between bond and bond fund? Can I sell them at any
time like other mutual funds? Is there any bond or bond fund with annual
return of 5~10%? Request for picks. Thanks. | D*****t
发帖数: 558 | 2 two major types of risks are associated with bond investing, credit risk
and interest rate risk. When the borrower defaults, investors lose their
principal. This is credit risk. When interest rate rises, bond prices go
down. This is interest rate risk.
If one holds an individual bond to its maturity and get repaid principal in
full amount, then the interest risk is non-exsitent. problem is the bond
issuer may go bust and default its debt. Such credit risk is always
associated with individual bond investors. Bond funds hold a variety of
bonds. Such diversification reduces risk in general, particularly credit
risk. However, bond funds do not have such a thing as maturity. Their prices
fluctuate with interest rate all the time. For small investors, I think
bond funds are better choices. | S*****0
发帖数: 816 | 3 thank you for your answer.
in
prices
【在 D*****t 的大作中提到】
: two major types of risks are associated with bond investing, credit risk
: and interest rate risk. When the borrower defaults, investors lose their
: principal. This is credit risk. When interest rate rises, bond prices go
: down. This is interest rate risk.
: If one holds an individual bond to its maturity and get repaid principal in
: full amount, then the interest risk is non-exsitent. problem is the bond
: issuer may go bust and default its debt. Such credit risk is always
: associated with individual bond investors. Bond funds hold a variety of
: bonds. Such diversification reduces risk in general, particularly credit
: risk. However, bond funds do not have such a thing as maturity. Their prices
| y****i
发帖数: 778 | 4 My 401k chose MXLMX multi sector bond fund, the same as LSBDX or similar to
PONAX if your 401k has it.
For brokerage account, in additional to the individual bond which I
recommend in the bond club, especially for tax free insured muni bonds in
your taxable account which have another protection for default risks:
http://www.mitbbs.com/clubarticle_t/Bond/31335339.html
How to buy and sell individual municipal bond
You can follow Bill Gross to where he put his own money: like VMO 7% tax
free yield, BBN and PTY which has 8.6% taxable yield at the end of 2013, but
slightly lower yield now because the price is going up recently. You can
buy any taxable bonds or bond funds in you IRA or Roth IRA.
http://blogs.barrons.com/incomeinvesting/2013/10/30/pimcos-gros
If you want to use the money within two years, BSJF or any target maturity
date bond funds can meet your specific liquidity requirements with much
higher yield than short term CD.
【在 S*****0 的大作中提到】
: What is the difference between bond and bond fund? Can I sell them at any
: time like other mutual funds? Is there any bond or bond fund with annual
: return of 5~10%? Request for picks. Thanks.
| r***e
发帖数: 2539 | 5 yangqi，一直关注你的帖子。请问这个BSJF在fidelity买卖收多少费用？
另外，请问怎么加入你的bond俱乐部，现在不让随便进了？
谢谢！
to
but
【在 y****i 的大作中提到】
: My 401k chose MXLMX multi sector bond fund, the same as LSBDX or similar to
: PONAX if your 401k has it.
: For brokerage account, in additional to the individual bond which I
: recommend in the bond club, especially for tax free insured muni bonds in
: your taxable account which have another protection for default risks:
: http://www.mitbbs.com/clubarticle_t/Bond/31335339.html
: How to buy and sell individual municipal bond
: You can follow Bill Gross to where he put his own money: like VMO 7% tax
: free yield, BBN and PTY which has 8.6% taxable yield at the end of 2013, but
: slightly lower yield now because the price is going up recently. You can
| y****i
发帖数: 778 | 6 $7.95 per transaction. 加入方式还是随便加入，点击加入即可。成为会员才能浏览
俱乐部的帖子。
【在 r***e 的大作中提到】
: yangqi，一直关注你的帖子。请问这个BSJF在fidelity买卖收多少费用？
: 另外，请问怎么加入你的bond俱乐部，现在不让随便进了？
: 谢谢！
:
: to
: but
| r****m
发帖数: 1204 | 7 纯探讨贴 -
Normally I am an advocate for holding a diversified portfolio which includes
some bond funds.
However, I think given the current rate environment, it's unwise to include
any bond fund in one's portfolio (unless you are at or near retirement stage
), especially for most members of this board which I assume are mostly young
to middle agers.
Bill Gross has been a big 反指 lately (in IMHO), don't follow him. | y****i
发帖数: 778 | 8 Even Bill Gross Is Now Looking More Toward Stocks
http://blogs.barrons.com/incomeinvesting/2014/01/23/even-bill-g
If you think Bill Gross has been a big 反指, you should sell the stock now.
He made many mistakes on treasury bonds recently, but muni bonds should have
some opportunities this year when people realize how much more tax they
need to pay at 4/15. Just avoid PR bonds or buy any individual bonds with
AGM/MBIA insured.
Last year many CEF had discount to NAV more than 10%, the risk of interest
hike was priced in already. How soon will the interest goes up is a big
question. I think Japanese lost decades can repeat itself anywhere if all
the bubbles created by the central banks burst again.
includes
include
stage
young
【在 r****m 的大作中提到】
: 纯探讨贴 -
: Normally I am an advocate for holding a diversified portfolio which includes
: some bond funds.
: However, I think given the current rate environment, it's unwise to include
: any bond fund in one's portfolio (unless you are at or near retirement stage
: ), especially for most members of this board which I assume are mostly young
: to middle agers.
: Bill Gross has been a big 反指 lately (in IMHO), don't follow him.
| D*****t
发帖数: 558 | 9 I have the view that 70/30 or 60/40 portfolios are universally appropriate
for any long term investors regardless of age. I can totally see your point
(imagine the folks at Permanent Portfolio who are sitting on a pile of
long term treasuries. You have to admire their strong stomach.) But just
look at the performance of those well estabilished balnced portfolio, such
as Vang. Wellington Fund. VWELX has followed the same balanced strategy
since its inception in 1929. It has endured i don't know how many
interest rate cycles and monetary policy changes, even a world war. It
boasts of a remarkable annualized return of 8.3% since inception. Lesson is
if you have a long time horizon, event such as Fed taper is nothing.
Maintaining a fixed AA will pay off despite of short term pain. And on a day
like today, it feels good to have some bonds in the portfolio.
includes
include
stage
young
【在 r****m 的大作中提到】
: 纯探讨贴 -
: Normally I am an advocate for holding a diversified portfolio which includes
: some bond funds.
: However, I think given the current rate environment, it's unwise to include
: any bond fund in one's portfolio (unless you are at or near retirement stage
: ), especially for most members of this board which I assume are mostly young
: to middle agers.
: Bill Gross has been a big 反指 lately (in IMHO), don't follow him.
| r****m
发帖数: 1204 | 10 I question the conventional wisdom of stock/bond (x/100-x) portfolio, as I
think it's too conservative for young/middle aged investors.
Generally, in a low interest rate environment, a smart investor should take
leverage (stocks) rather than de-leverage (bonds).
A day like today is a good opportunity for long term stock holders with DCA
approach.
I think Bill Gross made smart moves to stocks ... | D*****t
发帖数: 558 | 11 i feel comfortable buying emerging market in the coming days and weeks. and
this is partly because of the 40% allocation to bonds in the portfolio. |
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