portfolio - bonds vs just MM ?

Here's my current percentage of mutual funds -
In looking at the bonds,
they are all showing negative for the year...
So - I'm wondering about still holding them,
or selling them and just putting the cash into a MM :)

amcent intl bond 0.6%own -8%perf 3%yield
vang LT bond 4.8%own -2%perf 5%yield
vang gnma 3.5%own -1%perf 4%yield
---
trowe new era 0.9%
fid se.asia 1.7% gs IRA
fid conv sec 2.0% gs IRA
trowe new asia 2.3%
fid overseas 3.2% ps IRA
fid growth 3.5% ps IRA
fid growth&inc 3.8% gs IRA
amcent ultra 4.1%
fid div intl 4.8%
trowe new horz 5.8%
trowe intl stock 5.8%
vang tot stock 7.4%
fid growth&inc 10.1% ps IRA
vang windsor 27.0%

Re: portfolio - bonds vs just MM ?

"Phil Schuman" <> wrote in message
news:F4%Pf.57590$
> Here's my current percentage of mutual funds -
> In looking at the bonds,
> they are all showing negative for the year...
> So - I'm wondering about still holding them,
> or selling them and just putting the cash into a MM :)

FWIW, that's what I would do.
Vanguard Prime is yielding 4.3% and that should rise.

Re: portfolio - bonds vs just MM ?

Ed <> wrote:
>
> FWIW, that's what I would do.
> Vanguard Prime is yielding 4.3% and that should rise.

Two more rate hikes and money markets will yield more than the S&P 500
did in 2005.

The CD's I see offered in my Fidelity account are providing better yields
than the S&P500 did last year.

But Elle doesn't believe in timing the market so I'm sure she'll do just
fine.

Re: portfolio - bonds vs just MM ?

"Sanjay" <> wrote

> Ed <> wrote:
>>
>> FWIW, that's what I would do.
>> Vanguard Prime is yielding 4.3% and that should rise.
>
> Two more rate hikes and money markets will yield more than the S&P 500
> did in 2005.
>
> The CD's I see offered in my Fidelity account are providing better yields
> than the S&P500 did last year.
>
> But Elle doesn't believe in timing the market so I'm sure she'll do just
> fine.

I don't know, I think she's leaning more toward becoming a stock trader.
Some of her recent posts indicate that she feels timing just may be the way
to go. I think MM are attractive, I'm about 50% in them.

Re: portfolio - bonds vs just MM ?

Phil Schuman wrote:
> Here's my current percentage of mutual funds -
> In looking at the bonds,
> they are all showing negative for the year...
> So - I'm wondering about still holding them,
> or selling them and just putting the cash into a MM :)

Why did you buy bonds in the first place? Nobody should invest in bonds
for growth when interest rates are low--eventually interest rates will
rise again and lower the value of the bonds.

If you really care what the value of the bonds is, then sell them
because interest rates are going to keep rising for a while.

If you only bought the bonds for the income they throw off, then hold
them and don't even look at their value.


--
Steven D. Litvintchouk
Email:

Remove the NOSPAM before replying to me.

Re: portfolio - bonds vs just MM ?

Ed wrote:
> "Sanjay" <> wrote
>
>> Ed <> wrote:
>>> FWIW, that's what I would do.
>>> Vanguard Prime is yielding 4.3% and that should rise.
>> Two more rate hikes and money markets will yield more than the S&P 500
>> did in 2005.
>>
>> The CD's I see offered in my Fidelity account are providing better yields
>> than the S&P500 did last year.
>>
>> But Elle doesn't believe in timing the market so I'm sure she'll do just
>> fine.
>
> I don't know, I think she's leaning more toward becoming a stock trader.
> Some of her recent posts indicate that she feels timing just may be the way
> to go. I think MM are attractive, I'm about 50% in them.

Rising interest rates are going to hurt the U.S. stock market, the U.S.
bond market, the gold market and the commodities markets. The dollar
will rise which means that unhedged international funds will suffer too.
When real (inflation-adjusted) interest rates keep rising and rising,
money market funds are the best place to be.


--
Steven D. Litvintchouk
Email:

Remove the NOSPAM before replying to me.

Re: portfolio - bonds vs just MM ?

At 07:29 AM 3/10/06 -0800, you wrote:
>Depends on how long your view is, I suppose.
>
>There will be a couple more rate hikes (that's what the pundits say),
but
>interest rates are just about back up to a long-term average level
right
>now. Therefore, I view the risk of getting into bonds as very minimal
right
>now. If you've been holding long-term bonds, you've probably taken a
bit of
>a hit. But that Vanguard GNMA is one of the best bond funds out there,
and I
>wouldn't recommend getting rid of it. In fact, I'd recommend adding to
it on
>a regular basis.
>
>The bond portion of my own portfolio is woefully underfunded; I've been
>spending the last 10 years learning about and getting invested in
primarily
>stock funds. I have a small position in Dodge&Cox Income, and I'm
thinking
>about adding Vanguard Inflation-Protected, and Harbor Bond to bring the
>percentages up.
>
>Intl bonds are trickier, lots more volatility there, concerns about
exchange
>rates, hedging, etc. I haven't dabbled with them, and probably won't.
>
>Later, Randy

Re: portfolio - bonds vs just MM ?

"Phil Schuman" <> wrote in message
news:jIEQf.45949$
> At 07:29 AM 3/10/06 -0800, you wrote:
> >Depends on how long your view is, I suppose.
> >
> >There will be a couple more rate hikes (that's what the pundits say),
> but
> >interest rates are just about back up to a long-term average level
> right
> >now. Therefore, I view the risk of getting into bonds as very minimal
> right
> >now. If you've been holding long-term bonds, you've probably taken a
> bit of
> >a hit. But that Vanguard GNMA is one of the best bond funds out
there,
> and I
> >wouldn't recommend getting rid of it. In fact, I'd recommend adding
to
> it on
> >a regular basis.
> >
> >The bond portion of my own portfolio is woefully underfunded; I've
been
> >spending the last 10 years learning about and getting invested in
> primarily
> >stock funds. I have a small position in Dodge&Cox Income, and I'm
> thinking
> >about adding Vanguard Inflation-Protected, and Harbor Bond to bring
the
> >percentages up.
> >
> >Intl bonds are trickier, lots more volatility there, concerns about
> exchange
> >rates, hedging, etc. I haven't dabbled with them, and probably won't.
> >
> >Later, Randy
>
>
I'll have to see if I really want to continue to hold any bonds.
I have these -
will sell the Intl Bond (it was just a toe in the water)
as the dollar seems to be better now against the foreign markets.

Then I'll decide what to do on the domestic front...
Funny how you can talk yourself into, and outof, trading these.......

amcent intl bond 0.6%own -8%perf 3%yield
vang LT bond 4.8%own -2%perf 5%yield
vang gnma 3.5%own -1%perf 4%yield