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Are you still holding short-term bond?
11-19-2005, 07:25 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Are you still holding short-term bond?
The return of short-term bond has been dismal the last two years. Any plan of ditching it?
__________________
May we live in peace and harmony and be free from all human sufferings.
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Re: Are you still holding short-term bond?
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11-19-2005, 07:32 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,375
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Re: Are you still holding short-term bond?
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.
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Re: Are you still holding short-term bond?
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11-19-2005, 07:52 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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Re: Are you still holding short-term bond?
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.
__________________
Retired early, traveling perpetually.
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Re: Are you still holding short-term bond?
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11-19-2005, 09:18 AM
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#4
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Dryer sheet aficionado
Join Date: Feb 2004
Posts: 36
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Re: Are you still holding short-term bond?
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.
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Merlin<br /><br />"No matter where ye go, there ye are!
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Re: Are you still holding short-term bond?
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11-19-2005, 09:50 AM
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#5
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Full time employment: Posting here.
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 808
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Re: Are you still holding short-term bond?
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.
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Re: Are you still holding short-term bond?
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11-19-2005, 10:08 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,005
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Re: Are you still holding short-term bond?
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%.
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Re: Are you still holding short-term bond?
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11-19-2005, 07:29 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,781
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Re: Are you still holding short-term bond?
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.
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In a panamax down by the river.
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Re: Are you still holding short-term bond?
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11-19-2005, 07:35 PM
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#8
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Re: Are you still holding short-term bond?
 Quote:
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Originally Posted by 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.
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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.
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Re: Are you still holding short-term bond?
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11-19-2005, 07:35 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Are you still holding short-term bond?
I am slowly tiptoeing back into modestly longer maturities, 5 years or so. *I think the Fed is going to stop raising rates soon.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Are you still holding short-term bond?
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11-19-2005, 09:07 PM
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#10
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Full time employment: Posting here.
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 808
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Re: Are you still holding short-term bond?
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.
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Re: Are you still holding short-term bond?
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11-21-2005, 03:08 PM
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#11
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Full time employment: Posting here.
Join Date: Apr 2005
Posts: 524
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Re: Are you still holding short-term bond?
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.
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Re: Are you still holding short-term bond?
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11-21-2005, 07:11 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Re: Are you still holding short-term bond?
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.
__________________
May we live in peace and harmony and be free from all human sufferings.
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