Are you still holding short-term bond?

[Spanky]

The return of short-term bond has been dismal the last two years. Any plan of ditching it?

 

[Danny]

I'm just sitting in the money market account at my brokerage - 3.20 right now. Has been slowly rising each week, expect it to continue to rise as the fed brings rate up....I occasionally make a quick trade and then park it back into the MMF.

 

[Gone4Good]

The current thinking is that the Fed will move short rates up to 4.5%-5%, which should mean a bit more pain for short duration bonds. I have most of my fixed income portfolio in cash.

 

[Merlin]

My current plan is to ride up the rate increases with my Vanguard Short-Term Investment Grade and GNMA funds.  I am currently reinvesting those dividends.  I also hold some Vanguard Intermediate-Term Investment Grade that I plan to sell and buy a few preferred stocks with the proceeds.

 

[AltaRed]

Never did have much of anything in bonds with exception of a few balanced mutual funds which have not performed that well. Keeping virtually all of my 'fixed income' in cash at the moment at ING.

 

[justin]

Not in short term bonds already, but may make a move soon to vanguard short term bond of some sort. I think the interest rate increases will be over in another 0.5% increase or maybe 1.0%.

 

[BUM]

A local bank is offering a 4.5% 1 yr. CD. I'm moving a bunch out of the Vanguard MMF to jump on this rate.

 

[Cut-Throat]

A local bank is offering a 4.5% 1 yr. CD. I'm moving a bunch out of the Vanguard MMF to jump on this rate.

Emmigrant is currently paying 4% on just a savings account. I would not lock up the money for a year, there is a good chance that the rate will go up! - I've got my cash parked there currently.

 

[brewer12345]

I am slowly tiptoeing back into modestly longer maturities, 5 years or so.  I think the Fed is going to stop raising rates soon.

 

[AltaRed]

Agreed. Think the new guy has to do one or two more bumps to make a point he is an inflation fighter and then back off before the country goes into recession.... for a soft landing.

 

[JB]

Yes still holding it for money that I may spend in the next 5 years. I don't worry about the return so much, at times money markets will outperform, but on average the fund will win. I have no ability to predict the direction of interest rates. I did move some cash into CDs this year, and I'm not convinced it was worth the hassle.

 

[Spanky]

If history os of any guidance, short-term bond funds should outperform money market funds in the long run. I intend to keep the bond funds.