EDV?

[gcgang]

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0930

EDV is Vanguard Long Strips. 0.07%ER, 2.79%ytm, 25 yr maturity.

My Bonds lack duration. Many models use long bonds as their bond component. Considering using EDV to supercharge duration, but can't make myself pull the trigger, fearing "everyone" will be right about rates going up and incurring significant losses.

I bought a token amount 9 months ago. It's up 5%.

Got a CD maturing for token+ amount. But I think I'm so far behind the curve on owning long bonds, knowing I wouldn't rebalance this small amount even if rates drop and it gains 25%, that I'd just be averaging in to an eventual loser, just a matter of time until they implode.

Should I continue my CD ladder, or should I set a target amount, and rebalance around that target (all in IRA, of course)?

Anyone own longer duration bonds now?

 

[pb4uski]

Won't you get hammered if/when interest rates rise? It seems to me that the likelihood of rates rising far exceeds the likelihood of rates declining.

 

[CoolChange]

The current environment has me all but terrified of most fixed income. So, I am mostly sticking to CD’s and other deposit accounts for that allocation.

Yes, I have had this mindset for several years; it has cost me dearly. Not recommending anything to you; just letting you know that you are far from alone.

On a more positive note: I have started building a position in preferreds and have some high yield that has treated me well. But, I am starting to question my high yield allocation as well.