SecondAttempt
Thinks s/he gets paid by the post
Would you invest in GNMA funds right now?
As I build up the bond side of my portfolio in anticipation of retiring in about a year and a half I'm trying to understand bond funds better.
Mortgage rates are moving higher. I realize this drives down th eprice of existing mortgages held by GNMA funds and those funds have taken a hit. And the low rate mortgages are fairly fresh so they will not mature out anytime soon. But I would think this is priced in and the fact that they are now buying mortgages at late 90s rates should be a good thing. I am thinking about DCA into a GNMA fund as part of my bond portfolio starting in 2023.
Is this a horrible and stupid mistake?
As I build up the bond side of my portfolio in anticipation of retiring in about a year and a half I'm trying to understand bond funds better.
Mortgage rates are moving higher. I realize this drives down th eprice of existing mortgages held by GNMA funds and those funds have taken a hit. And the low rate mortgages are fairly fresh so they will not mature out anytime soon. But I would think this is priced in and the fact that they are now buying mortgages at late 90s rates should be a good thing. I am thinking about DCA into a GNMA fund as part of my bond portfolio starting in 2023.
Is this a horrible and stupid mistake?