Mr._Graybeard
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2011
- Messages
- 2,981
I'm laying back awhile -- I may need some ready cash to buy an adjoining piece of vacant land.
I'm laying back awhile -- I may need some ready cash to buy an adjoining piece of vacant land.
I'm seeing/doing the same. For me, long end is 10 to 20 years, even a sprinkle of 25 and 30 years. I'm no longer playing with the 100 year, sold the one issue I had yesterday for a good price. If I want to go longer term, the 30 year munis have better yields at this time and will be less volatile should rates go higher at the longer end of the yield curve. Short end, if I see a great CD on my secondary market screen I grab it. I can usually get small 5.5% to 6% lots once or twice a week for up to 2 year maturity.
I stuck with my mechanical reinvestment strategy in my ladders. Putting maturing funds into the long end, which for me is 5-9 years. Everything I bought back in October to mid November was at yields you just can’t get today.
I think the short end, 2 year and less, will rise a bit, the long end not so much.
I am fully invested in my taxable account now with maturing funds happening mostly mid to late 2023.
I have some cash in IRAs, but feeling ambivalent about fixed income at the moment feeling if I invest short, I may miss a crater in equities that I would like to buy.
I am over funded in my ladders. They throw off way more than we spend right now.
Reading here, I wonder how much I'm leaving on the table.
Back when rates were nothing in money markets, I bought an 18 month, 5 rung taxable muni ladder. This is for my mom, who doesn't need to worry about taxes. Just spent an hour grabbing the best deals of that day. Then, after one matures, I just pop on the one time, search the long end, and buy the best deal I find. Done. Is there reason to justify many hours of checking and re-checking the available issues, or is taking whatever is available at a random time sufficient?
Reading here, I wonder how much I'm leaving on the table.
Back when rates were nothing in money markets, I bought an 18 month, 5 rung taxable muni ladder. This is for my mom, who doesn't need to worry about taxes. Just spent an hour grabbing the best deals of that day. Then, after one matures, I just pop on the one time, search the long end, and buy the best deal I find. Done. Is there reason to justify many hours of checking and re-checking the available issues, or is taking whatever is available at a random time sufficient?
Reading here, I wonder how much I'm leaving on the table.
Back when rates were nothing in money markets, I bought an 18 month, 5 rung taxable muni ladder. This is for my mom, who doesn't need to worry about taxes. Just spent an hour grabbing the best deals of that day. Then, after one matures, I just pop on the one time, search the long end, and buy the best deal I find. Done. Is there reason to justify many hours of checking and re-checking the available issues, or is taking whatever is available at a random time sufficient?
Happy to be done with the oils because of all the volatility over the past few years. Very happy to have gotten her out at/near the all-time highs on XOM and COP. Had heart palpitations a few times with them just three years ago.
How about GSE bonds? Not full, faith and credit but usually Aaa, better than most minis and a tad more yield than CDs and USTs... but usually callable.Thanks, all, for the thoughts. At the time of the original build, munis were paying the best, I think. I suppose I could check CD's and treasury rates as the munis mature, but I don't want to have to open a discussion about credit risk, no matter how small, so probably won't delve into corporate bonds for her.
My 40 plus years of experience in finance strongly recommends that investors should look at what the market says over what the Fed says
He also drew attention to the inversion of the Treasury yield curve, which have successfully predicted economic slumps in the past. Inverted yield curves have always led to recession in relatively short order, he said, adding that “there is tremendous upside in many bond strategies.”
Gundlach’s comments on the Fed echo remarks he made late last week on Twitter in which he said “There is no way the Fed is going to 5%. The Fed is not in control. The Bond Market is in control.”
I've been out of Vanguard's intermediate-term muni fund (VWIUX/VWITX) for a good while now. Does anyone think it would be a mistake to DCA back in to it?
If they go up…
NAV will drop more though.
I have come to understand how weak the pricing mechanism is for these thinly traded bonds when there is frequently no bid. As a holder of individual bonds, it’s easy to ignore. If I’m holding a bond fund I have one eye on the NAV and the other on my fellow fund holder and wondering if I need to race to beat him out the door.
Interesting tidbit. I run a muni screen of my state specific bonds a couple times a week. I usually get about 1200 - 1500 results. Today - 700. Hmmmmm.
My saved queries have also declined in resulting bonds over the past few weeks. Yields are way down.