Mr._Graybeard
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2011
- Messages
- 2,981
If you examine PIMIX (the institutional version of PONDX), it has been virtually a "magical" fund. Since inception in 2007 it has had less much volatility than total bond index (AGG) with returns that actually beat total stock market over the period. It's only drawback during that time for being a good bond proxy is the moderate .57 correlation with equities.
I find the fact that it has been "magical" for a decade that includes the 2008 meltdown and the huge bull bounce that followed to be very interesting. I also find the idea that it has been "magical" during the period to be a warning that past performance doesn't indicate future returns.
I personally have 50% of my FI in PIMIX and have had since 2010. I don't recommend anyone do the same and don't expect the next decade to resemble the last for PIMIX. I do think it is very likely that PIMIX total returns
will handily beat total bond market over the next 10 years but for most people that isn't the reason they hold bonds.
I'm with you, bro! (Although not nearly at 50%, more like 5%.) That 5.5% dividend is pretty sweet.