RPHYX Sharpe Ratio Hi, Gundlar.
Sharpe is a calculation of a fund's risk-adjusted returns minus the returns available from a risk-free investment, typically a T-bill.
Neither the risk nor the returns of RPHYX have meaningfully changed. The volatility measures for RPHYX have not materially changed over the trailing 1, 3, 5, and since inception periods. The standard deviation, for example, is 0.7 / 0.6 / 0.7 / 0.7. Downside deviation is 0.4 / 0.3 / 0.3 / 0.3. Max drawdown and such, likewise.
Annual returns since at 2.5 / 2.6 / 2.6 / 3.1.
My best guess, then, is that the "risk-free rate of return" has increased.
Out of curiosity, I passed along your question and my speculation to the manager, David Sherman. If I hear back, I'll share what I learn.
David
Federal Reserve cuts benchmark rate by .5%
Federal Reserve cuts benchmark rate by .5% Greg Valliere, chief U.S. policy strategy of AGF Investments said:
"The downside is that the "saver class," which consists mostly of senior citizens, "have been hit again" because of falling yields. However, Valliere expects a "tremendous amount of refinancing."
Great! I am going to suggest to my 85-year-old father who lives on his Social Security check and small savings, to refinance his condominium for 30 years.
One stunning chart shows how severe this selloff has been: Morning Brief
Federal Reserve cuts benchmark rate by .5% A dog chasing it's tail, IMHO. But, this will cause some short term investment thinking.
On the other hand, investment grade bonds should prove to have a decent week; barring a "whatever" moment.
Article, if you choose to know more
Have a good remainder.
Catch
RPHYX Sharpe Ratio I noticed that the Sharpe Ratio for RPHYX is much lower than it used to be 3 yr 0.75 and 5 yr 1.41, according to Morning Star. Is this cause for concern? I currently own DHEAX as a lower risk bond fund. I was thinking of adding more cash to it or starting a position in RPHYX now that it is open. Thank you for your thoughts.
muni yield next to nothing yet investors keep buying
4 funds that provide shelter from the storm
Bond mutual funds analysis act 2 !! There is so much talk and hype regarding IOFIX that I decided to check it out.
Although it is very expensive for a bond fund, its returns are phenomenal and its metrics appear to be very reasonable for the most part. Even the SD is reasonable relative to its returns.
High sharp ratio and martin ratio, excellent UP/DOWN capture ratio, Great Owl and a risk profile of only "2", etc.
It seems to have performed reasonably well in up and down interest rate environments, albeit in its short life.
I am considering opening a relatively small position (5% - 7%) in my ROTH to add a little punch. I currently own JMUIX and VCFAX. I am very happy with both current MFs and have no plans to eliminate or reduce % invested; I have cash to invest in IOFIX.
Thanks,
Matt
Bond mutual funds analysis act 2 !! I agree but ZEOIX has a shorter duration ( 0.57 vs 1.4) so will handle rising rates much better
BTW how do you easily access the older and much better fund pages at M* ? your link works but I cant get it to load any other fund's profile
Bond mutual funds analysis act 2 !! @guilhermesZEOIX had a good record for several years but HY have their problem when markets collapse. Losing -0.8% is a lot of money especially when you compare it to DHEIX which has over 80% in IG rating bonds. BTW, ZEOIX also lost -0.6% in Q4/2018.
I'm just giving several options. If it was me and I was looking for a "cash sub" fund I would use DHEIX and not ZEOIX. See (
chart)
Bond mutual funds analysis act 2 !! @davidrmoranWhen I say 4.
5% including inflation it means exactly that. These numbers are based on 3% inflation. In 2010 I planned my retirement date to be at the end of 2017. I postponed it by one year because private healthcare (ACA) triple in price. So, from 2010 to 2018 I
gradually decrease our portfolio % in stocks and increase bonds. Since 2018, I mainly invest in bond + make several trades in riskier stuff(stocks,ETFs,CEFs) for days and weeks.
I used to own a large % in PIMIX for years from 2011-2018. This is the performance of PIMIX vs
50/
50 SPY/BND (
link)
The 6% is just a goal but I happened to make more in 2018-2019. According to my Schwab account, my portfolio SD for 2018-19 is 1.7. In Q4/2018 when the SP
500 lost almost 20%, my portfolio was down less than 1%. In the last 2 weeks, when stocks lost 12+% my portfolio made money every day.
Let's stay on the topic of this thread Bond fund analysis.
Tom Madell's most recent Mutual Fund/ETF Newsletter Hi Guys,
I have always enjoyed reading Dr. Madell's newsletter as he writes good down to eath thinking. I especially enjoyed reading about his suggested 25/25/50 asset allocation portfolio that he used in this months newsletter to compute portfolio performance. This was of good interest to me since my portfolio now centers around a 20/40/40 asset allocation mix. For me my asset allocation is important, to me, because it reflects my risk tolerance, meets my production needs thus meeting my need based goals. Plus, it is a lesson in how to manage investment risk as well.
In reading his newsletter take a few notes ... say of at least three things ... that are interest and see if they don't resonate with you in your own investing endeavors. If you can not find at least three things then perhaps you should consider changing your thinking and your philosophy concerning investing.
Hopefully, he will soon write about how to determine fair value for both the stock and bond markets. I'd be interested in reading his perpsectives on this subject.
I wish all ... "Good Investing."
A look ahead for the overnight potentials in the markets......
COVID-19 and the portfolio Hi
@Old_JoeLast Friday noon time I was on a normal grocery shopping trip. I stopped at two very large stores; and in both cases spent about 1
5 minutes wandering (watching) the aisle areas where hand sanitizer and related are located. In both stores the carts in those areas contained the sanitizer, latex or similar gloves and standard face masks.
An interesting watch, as well as the conversations in the area, too.
COVID-19 and the portfolio On the "developing news" side of things, here's some excerpts from a very interesting story out of the SF Bay Area regarding "panic buying", as reported by the
San Francisco Chronicle:
Supplies fly off shelves in Bay Area as coronavirus spreads
Bare shelves and frayed nerves were on full display over the weekend at Bay Area grocery stores as the coronavirus continued to spread.
Shoppers described chaotic scenes, many of which were shared on social media: stacks of rice and toilet paper snatched up within seconds, checkout lines that snaked through entire stores, and jam-packed parking lots reminiscent of Christmas Eve.
It’s the latest ripple effect of the outbreak of a still mysterious respiratory illness that in the past two months has caused more than 88,000 people around the world to fall ill. The virus that only a few weeks ago was mostly confined to China now has recorded cases in more than 60 nations.
According to figures compiled by Johns Hopkins University, the number of fatalities from the illness rose to more than 3,000 on Sunday. More than 2,800 are in China, where the outbreak originated. The first American fatality occurred Saturday in Washington state, and a second death was reported there Sunday.
With numbers climbing and no vaccine available, institutions such as the World Health Organization and the United States’ Centers for Disease Control and Prevention in recent days have warned that people should be prepared for a pandemic situation, including the possibility of having to stay confined in their homes for one or two weeks.
The results of that warning could be glimpsed in the depleted shelves and long lines in stores this weekend.
[At a local Costco] dozens of cars snaked around the block, waiting to enter the parking lot. Shoppers lugged jugs of water and emergency supplies, since there wasn’t a single shopping cart left to grab.
It will be interesting to see how or if this reaction develops nationwide, and note the stresses that it might place on the national grocery distribution channels.
Note: The
San Francisco Chronicle has no paywall, and should be accessible via the above link.