How did your bond funds fare this week? @ Dex posted "Earlier this week, the ECB chief stoked a rout in bonds after he told investors Wednesday to “get used to periods of higher volatility,”
Adding to that perception:Market Perspectives from Acropolis Posted on June 5, 20
15 by David Ott
"Naturally, I headed over to our bond guys, Ryan and Cliff to see what they thought. Ryan flatly said, ‘Dave, we’re just watching volatility.’ He is absolutely right.
The chart above shows the yields on a year-to-date basis and from that perspective, yields are high. If we, as Sherlock Holmes says, widen our gaze, to one year, we can see that, in this context, yields are off of their lows but still not particularly high.....
We can see that there are wide differences between the highs and the lows, which gets back to Ryan’s point – bond yields have been volatile, but, really, there’s not much to see here.
...Of course, we’ll have to see where things go from here, but it’s far, far too soon to say that these are the higher interest rates we’ve been waiting for over the past six or eight years."
http://acrinv.com/interest-rates-rising/
45 Year look back: A Seven Asset Allocation Pre / Post Retirement Performance Hi Sven,
I too have access to Bill Sharpe's Financial Engines website. I elected not to mention it because of its likely limited access for many MFOers.
I have a true anecdotal story involving Sharpe and me. In the early 1990s I was planning retirement and consulted with advisors asking for Monte Carlo analyses to support their opinions. They thought I was nuts.
So I was motivated to do my own programming. I ran into some stumbling blocks and sought help from the academic world. Professor Sharp rescued me with great advice on Monte Carlo issues and Gene Fama sent me tons of data. Both professors were extremely generous, and both were friendly. It never hurts to ask for help.
I don't understand the reluctance of some MFOers to even explore the potential benefits that Monte Carlo offers. Open mindedness when investing is an essential element to enhance the odds of success.
Many thanks for your contribution.
Best Wishes.
How did your bond funds fare this week? This has been a rough week on bond funds around the globe this week. Majority of them has lost 1% or more. Think they will rebound in next few weeks.
Few fared better (mostly with short duration):
River Park short term high yield, 0.1% loss
T. Rowe Price High Yield bond, 0.5% loss
Osterweis Strategic Income, 0% loss
Matthew Asia Strategic Income, 0.5 loss
Metropolitan West Unconstrained, 0.4% loss
Metropolitan West Ultra short bond, 0% loss
Vanguard Short Term Investment grade bond, 0.4% loss
Vanguard short Term bond index, 0.4 loss
