REWahoo
Give me a museum and I'll fill it. (Picasso) Give
..and 'converted' to what?Been latino...
..and 'converted' to what?Been latino...
Hola Brewer,
Have you consider the age of the population. The older we get, we normally decrease our expenses and this proabably last until our final time. Been latino, I know that my friend's do not care about the stock market and the number of investors will probably decrease in the US has the latino population grows. No scientific study, just my personal observation from my circle of amigos/ friends.
There are good times to buy junk and bad times. There are good junk bonds to buy and bad ones. But for people who can do credit analysis, there is the opportunity to make very nice money in the junk market from time to time.
What about the GNMA funds?
Both Fidelity and Vanguard have them with a little over 7% return. The Vanguard one is highly invested in MBS and as long as the interest rates stay low, we will see more homes purchased next year....imo.
I'm thinking of either GNMA because of housing purchases going up, the Equity Income VEIPX because the mkt is on its way up or the Dividend Growth which is a little more dangerous because it only holds 48 stocks.
Any opinions??
I agree but now is not a good time to buy the Vanguard HYCB fund, the better HYBF compared to the others and individual issues are too risky for the ordinary person. I bought the Vg HYCBF when the nav was in the low $4 range and that was a good time so even if rates go up it'll take a lot to get back to my purchase price while the yield would soar back to the 12+% area.
There are times when buying junk is shootng fish in a barrel. Clearly we are not in that market environment. There are times when junk is stupidly overvalued as an asset class (e.g. 2007). Clearly we are not in that market environment. So we are where the junk market is much of the tme, which is a bond picker's market. There are out of favor sectors and issuers that offer very attarctive risk adjusted yield and all you have to do is some simple credit analysis to find them.