Another Bond Question (DBLTX)

[COcheesehead]

Its benchmark is AGG, yet DBTLX minimally absconds with .48 basis points!
I'd certainly look elsewhere recalling Fido's, Schwab, and VGs IDENTICAL Total Bond funds that also use AGG as benchmarks charge ERs close to 00.03/00.05ish. I'd check that out.
Yet you pay .48?, in this interest rate starved environment.

https://doublelinefunds.com/total-return-bond-fund/
Good luck & Best Wishes though!

DBLTX out performs AGG (see chart) and has about a 30% higher yield.

 

[audreyh1]

DBLTX is not an index fund. It does not track AGG, it simply uses it as a benchmark for comparison. Don’t confuse it with The low cost index funds from Vanguard, Fido, etc.

 

[bolt]

Thx for that info, another quick look at its (DBTLX) info and I'm confused, again.
It claims up to 50% of its securites are slated toward MBS yet its benchmark AGG is different.
I suspect its buying undervalued opportunities, actively.
I guess I assumed its 'Total Bond Market' claims had me believing it was simply another provider marketing index products, charging excessively & and claiming otherwise.


Good luck & Best wishes....

 

[COcheesehead]

Thx for that info, another quick look at its (DBTLX) info and I'm confused, again.
It claims up to 50% of its securites are slated toward MBS yet its benchmark AGG is different.
I suspect its buying undervalued opportunities, actively.
I guess I assumed its 'Total Bond Market' claims had me believing it was simply another provider marketing index products, charging excessively & and claiming otherwise.


Good luck & Best wishes....

Maybe it wants to beat the index rather than mimic it. Now that's a thought.

 

[audreyh1]

Thx for that info, another quick look at its (DBTLX) info and I'm confused, again.
It claims up to 50% of its securites are slated toward MBS yet its benchmark AGG is different.
I suspect its buying undervalued opportunities, actively.
I guess I assumed its 'Total Bond Market' claims had me believing it was simply another provider marketing index products, charging excessively & and claiming otherwise.


Good luck & Best wishes....

There are plenty of funds called “Total Bond” that aren’t index funds, including a Fido one. An index fund will have Index in the name.

 

[2177V]

An investment in DBLTX is an investment in Gundlach. If you trust Gundlach, then don't worry about it.

I agree. I use Gundlach as my free financial advisor. Last year, he stated that 2019 is an asset preservation year so I reallocated my 60/40 portfolio to 100% treasuries and I missed the 2020 bear market. VUSUX is +20% YTD 2020 so he is my hero.

 

[COcheesehead]

I agree. I use Gundlach as my free financial advisor. Last year, he stated that 2019 is an asset preservation year so I reallocated my 60/40 portfolio to 100% treasuries and I missed the 2020 bear market. VUSUX is +20% YTD 2020 so he is my hero.

Hero’s can be wrong too.
https://www.cnbc.com/2019/12/10/jeffrey-gundlach-says-long-term-rates-headed-higher.html

 

[VanWinkle]

I agree. I use Gundlach as my free financial advisor. Last year, he stated that 2019 is an asset preservation year so I reallocated my 60/40 portfolio to 100% treasuries and I missed the 2020 bear market. VUSUX is +20% YTD 2020 so he is my hero.

Can he tell us when to get back in, or will that be in hindsight?

 

[2177V]

Hero’s can be wrong too.
https://www.cnbc.com/2019/12/10/jeffrey-gundlach-says-long-term-rates-headed-higher.html

Nobody can be 100% correct in his predictions. However, Gundlach went from a drummer in a band or nearly 0% net worth to $2 Billion net worth. This means he is doing better than just about everybody on this forum.

He is my hero because I followed his advice by changing my 60/40 portfolio to 100% treasuries in 2019 before the 2020 crash. I am now richer and that is the only thing that matters to me.

 

[2177V]

Can he tell us when to get back in, or will that be in hindsight?

Recently Jeffrey Gundlach stated that he does not expect a V shaped recovery so he recommends increasing your cash allocation which I have already done since I am mostly in treasury bonds.

Warren Buffet sold his airlines stock recently so Warren Buffet has also increased his cash holdings.

The market is going up because the federal government is flooding the market with liquidity and the expectation of opening up the economy. However, this means the rally is debt based and we will not return to 100% normal in 2020 because of the uncertainty of the virus.

Once the 2nd quarter's corporate earnings are published in late July and August (which should be negative), I expect the rally to end. I believe that Jeffrey Gundlach and Warren Buffet have similar expectations.

Jeffrey Gundlach and Warren Buffet will likely NEVER tell you when to get back in since they both want the market to decline so that they both can buy equities at low prices using their increased cash position. After they have reallocate, only then they will recommend buying equities.

I pay more attention on what billionaires do rather than what they say. Jeffrey Gundlach is now shorting the market since he believes the PE ratio is too high (the E in earnings will diminish) so the market is be over-priced. A super high PE ratio generally do not cause the market to go up.

You should also remember that Bill Ackman shorted the market before the 2020 crash because he understood pandemic effect on the stock market. His 27 million dollar bet earned him 2.6 billion dollars in a few short months.

Billionaires are smarter than you think...which is why they are billionaires. This is why I pay attention to them.

 

[GR111]

Before FIRE’d, 95% stocks. Now retired and I have some bond funds for AA, but I’m just a big believer in a few years of cash and the rest in diversified portfolio of equities. I love love love stocks of great companies! Will let you know how it goes.

 

[pb4uski]

.... I am now richer and that is the only thing that matters to me.

We already had that part figured out.

 

[tdv2]

FYI. I decided to short the market by buying shares of RYURX on my non-IRA Etrade account. This is because Jeffrey Gundlach has announced that he is shorting the market and Warren Buffet has increased his cash position.

The S&P500 is way too high in my opinion with the large unemployment applications and the shelter in place is causing some long term economic damage. I also read that Wuhan has opened their economy but people are still scared and there is no bounce in China's economy. Once USA opens up their economy I expect something similar. When investors realizes that we are in a recession, the market will decline. At that point, I will sell my shares of RYURX and make a profit.

How is this Jeffrey Gundlach prediction working out for you from this post you made on 5/1/2020 ?

You need to take your own advise....you just stated that Warren Buffet and Jeffrey Gundlach won't tell you what they are doing until after they have done it. As I said in a previous post, Gundlach told the media he was shorting....no telling what he did with his own money.

 

[COcheesehead]

Nobody can be 100% correct in his predictions. However, Gundlach went from a drummer in a band or nearly 0% net worth to $2 Billion net worth. This means he is doing better than just about everybody on this forum.

He is my hero because I followed his advice by changing my 60/40 portfolio to 100% treasuries in 2019 before the 2020 crash. I am now richer and that is the only thing that matters to me.

So at the end of 2019 he said you should buy treasuries. OK.

In my link in December of 2019 he told CNBC rates are going up. Do you know what that would do to treasuries? Make them go down.

 

[COcheesehead]

Recently Jeffrey Gundlach stated that he does not expect a V shaped recovery so he recommends increasing your cash allocation which I have already done since I am mostly in treasury bonds.

Warren Buffet sold his airlines stock recently so Warren Buffet has also increased his cash holdings.

The market is going up because the federal government is flooding the market with liquidity and the expectation of opening up the economy. However, this means the rally is debt based and we will not return to 100% normal in 2020 because of the uncertainty of the virus.

Once the 2nd quarter's corporate earnings are published in late July and August (which should be negative), I expect the rally to end. I believe that Jeffrey Gundlach and Warren Buffet have similar expectations.

Jeffrey Gundlach and Warren Buffet will likely NEVER tell you when to get back in since they both want the market to decline so that they both can buy equities at low prices using their increased cash position. After they have reallocate, only then they will recommend buying equities.

I pay more attention on what billionaires do rather than what they say. Jeffrey Gundlach is now shorting the market since he believes the PE ratio is too high (the E in earnings will diminish) so the market is be over-priced. A super high PE ratio generally do not cause the market to go up.

You should also remember that Bill Ackman shorted the market before the 2020 crash because he understood pandemic effect on the stock market. His 27 million dollar bet earned him 2.6 billion dollars in a few short months.

Billionaires are smarter than you think...which is why they are billionaires. This is why I pay attention to them.

April 27th Gundlach announces he is shorting the market.

 

[Markola]

It appears Las Vegas has reopened too.

 

[tdv2]

April 27th Gundlach announces he is shorting the market.

Here is one way it can work for him....Gundlach says he is shorting the market....for the first few days the market declines a bit as his minions follow suit and think they are shorting along with him. All along he is buying at the lower prices from the folks who take his advise. When the market moves up, and keeps going up, the shorts rush to cover further enriching his portfolio. Anyone with a mouth piece wouldn't have it any other way. It boggles my mind how anyone can't see the ulterior motives of these so called guru's.

 

[COcheesehead]

Yep, that’s my point. Publicly he is wrong more than right, but yet he has billions. So ....

I wish I would have bought the airlines after Warren said they were dead.

 

[tdv2]

"silent evidence"