Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Bad Quarter
Old 04-10-2005, 06:11 AM   #1
Thinks s/he gets paid by the post
Eagle43's Avatar
Join Date: Jan 2005
Location: DFW
Posts: 1,999
Bad Quarter

You knew this of course, but here's a measure of confirmation:

Stocks and bonds both lose money in 1st quarter

By Paul J. Lim

The New York Times

It's why investors are taught to diversify: When one asset class falls, others are expected to rise, thereby safeguarding portfolios from across-the-board losses. But in the first three months of 2005, stock and bond funds lost money in lock step for the first quarter in eight years.

For stock funds, the quarter was the worst period of performance in two years. Yet bond funds offered little portfolio protection, as they lost money for only the second quarter since the Internet bubble burst in 2000.

"Nothing worked," said Joseph Quinlan, chief market strategist at Bank of America's Investment Strategies Group, noting that stock and bond investors feared rising inflation, interest rates and oil prices.

cut for brevity...and it goes on...

The big blow for diversified investors was that bond funds also fared poorly during this stretch, as long-term interest rates finally began to respond to short-term rate increases by the Federal Reserve Board that started last summer.

The yield on 10-year Treasury notes, for instance, was 4.5 percent at the end of the quarter, up from 4.22 percent at the start of the year. Bond yields and prices move in opposite directions, so the average taxable fixed-income portfolio slipped 0.7 percent as prices slumped on older, lower-yielding bonds.

A risky segment of the fixed-income universe fared among the worst: High-yield bond funds lost 1.5 percent on average. Emerging-market bond funds fell 1.1 percent.

One of the few bright spots among bond funds were so-called bank loan funds, a niche category of portfolios that invest in floating-rate debt and therefore perform better in times of rising interest rates. The average bank loan fund was up 1.2 percent in the quarter.

Quinlan predicted "continued rough sledding" for investors in coming months, especially because there is no consensus on a good place for them to put their money.

what to do, what to do. Nothing, I expect ...
Resist much. Obey Little. . . . Ed Abbey

Disclaimer: My Posts are for my amusement only.
Eagle43 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Bad Quarter
Old 04-10-2005, 08:10 AM   #2
Moderator Emeritus
Martha's Avatar
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
Re: Bad Quarter

This is why we continue to sit on so much cash. No place to go.

No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 09:44 AM   #3
Full time employment: Posting here.
Join Date: Dec 2004
Posts: 714
Re: Bad Quarter

Well, real estate continued to climb, and commodities still seem to be rising ...
Craig is offline   Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 10:08 AM   #4
Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
Re: Bad Quarter

If you were holding RWR or VNQ, I don't think you'd agree that Real Estate was up in 1Q'05.
soupcxan is offline   Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 03:23 PM   #5
Thinks s/he gets paid by the post
Spanky's Avatar
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,452
Re: Bad Quarter

A bad quarter may indicate more disappointing quarters to come because of the upward pressures on interest rates, concern of inflation and low stock yields.

It may not be a bad idea to shift more money into short-term investments and precious metal funds.

May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 04:00 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,936
Re: Bad Quarter

I shall continue to watch the market daily - and do nothing. By football season - being one year older may adjust stock/bond ratio based on my age and slog on.

Sports and stocks, stocks and sports - in ER pretty much a spectator - unless I take up golf or fishing or

Still looking at kayaks AND have a little putz money on the side for stocks.
unclemick is offline   Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 05:26 PM   #7
Posts: n/a
Re: Bad Quarter

I think in terms of Bad quarter of a Century rather than 1 year. Smooths things out a bit.
  Reply With Quote
Re: Bad Quarter
Old 04-10-2005, 06:23 PM   #8
Recycles dryer sheets
Join Date: Jan 2004
Posts: 75
Re: Bad Quarter

unclemick,go long on the kayak,or sit-a-pon.dont be a fool,take lessons,enjoy.Way better than any market action,certainly better than watching any tv-sport.the pursuit or diversion of $ gains is typical,but it pales in comparison to adventure outside the computer room.
real men dont use dryer sheets
ak4195 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
bad gateway error mathjak107 Forum Admin 0 09-24-2006 02:57 AM
Nords! - We have good news and bad news!............ Cut-Throat Life after FIRE 16 09-13-2006 01:26 PM
2nd Quarter 2006 investment results - Surprising! justin FIRE and Money 10 07-04-2006 07:51 PM
55 Degrees Bad For House? TromboneAl Other topics 29 02-21-2006 04:05 PM
SWR in bad times sgeeeee FIRE and Money 37 02-16-2004 01:11 PM

» Quick Links

All times are GMT -6. The time now is 06:40 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.