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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Experts Forecast Stock and Bond Returns
    Look at the bounce (and volatility) from October 2022 low.
    image
  • BONDS, HIATUS ..... March 24, 2023
    of course the future is likely to be different with bonds, but schp too has been a weak investment for 2/1/0.5y (compared w stip, agg, fbnd, bsv)
  • Moderna Plans to Quadruple Covid Vaccine Price
    bivalent use remains low. Despite the safety of the booster for kids 5 to 11 (Update January 16), only 11.5% of recipients of a primary series have gone back for the bivalent (CDC).
    That is the sad part of this political environment. So what so great of being long COVID patients and your outlook on life is greatly diminished.
  • Experts Forecast Stock and Bond Returns
    'almost all of the firms in our survey have increased their expectations for stock and bond returns for the next decade'
    I have to discover which shop they're using for Magic 8 Ball repairs and tune-up. Mine will only forecast a day or two ahead !!!
    @Observant1 , thank you for the 'link to a view'.
  • Experts Forecast Stock and Bond Returns
    "Yet, even as investor balances are depressed, their portfolio prospects are likely better than they were a year ago, a fact that my latest roundup of capital markets assumptions illustrates vividly. Thanks to higher fixed-income yields and lower equity valuations, almost all of the firms in our survey have increased their expectations for stock and bond returns for the next decade. Every firm in our survey expects non-U.S. stocks to outperform U.S. stocks in the decade ahead."
    Link
    Personally, I usually don't make portfolio changes based on "expert" forecasts.
    Having said that, it's interesting to read these firms' assumptions.
  • Promising Funds?
    Morningstar analysts added several promising funds to the Morningstar Prospects list.
    Four of the six strategies which were added to the January 2023 list are discussed.
    Link
  • Hartford Schroders Securitized Income Fund to be liquidated
    https://www.sec.gov/Archives/edgar/data/49905/000119312523012796/d440160d497.htm
    497 1 d440160d497.htm HARTFORD MUTUAL FUNDS II INC
    JANUARY 23, 2023
    SUPPLEMENT TO THE FOLLOWING PROSPECTUSES:
    HARTFORD SCHRODERS SECURITIZED INCOME FUND SUMMARY PROSPECTUS
    DATED MARCH 1, 2022
    HARTFORD SCHRODERS FUNDS PROSPECTUS
    DATED MARCH 1, 2022, AS SUPPLEMENTED TO DATE
    This Supplement contains new and additional information regarding Hartford Schroders Securitized Income Fund and should be read in connection with your Summary Prospectus and Statutory Prospectus.
    On or about February 28, 2023 (the “Liquidation Date”), Hartford Schroders Securitized Income Fund (the “Fund”), a series of The Hartford Mutual Funds II, Inc. (the “Company”), will be liquidated (the “Liquidation”).
    SUSPENSION OF SALES. The Fund is instructing its transfer agent, other service providers, and financial intermediaries to no longer accept any account applications or purchase orders from new investors effective no later than the close of business on January 31, 2023. Accordingly, the Fund will be closed to all new investors on or before that date.
    Until the close of business on February 21, 2023, the Fund will remain open to retirement plans and shareholders currently invested in the Fund. After that date, the Fund will no longer accept any purchase orders and will no longer be available for automatic investments (other than dividend reinvestments). Prior to the Liquidation Date, retirement plans and shareholders currently invested in the Fund may continue to reinvest dividends and capital gain distributions in the Fund.
    At any time prior to the Liquidation Date, the Fund may, in the Fund’s discretion, reject any purchase orders for any reason, including for operational reasons relating to the Liquidation of the Fund.
    LIQUIDATION OF ASSETS. To prepare for the Liquidation, it is anticipated that the Fund will depart from its stated investment objective and policies as it prepares to distribute its assets to investors. It is anticipated that the Fund’s sub-adviser will increase the portion of the Fund’s assets held in cash and similar investments and reduce maturities of non-cash investments in order to prepare for orderly liquidation and to meet anticipated redemption requests. As a result, the Fund’s portfolio may consist of all or substantially all cash or cash equivalents prior to the Liquidation Date, which may adversely affect the Fund’s performance. From the date of this Supplement, the Fund may invest all or a substantial portion of its assets in cash or cash equivalents. The impending liquidation of the Fund may result in large redemptions, which could adversely affect the Fund’s expense ratios, although existing expense limitations are expected to be maintained.
    In connection with the Liquidation, any shares of the Fund outstanding on the Liquidation Date will automatically be redeemed by the Fund as of the Liquidation Date (except as noted below for qualified accounts that were opened directly with the Hartford Funds). The proceeds of any such redemption will be equal to the net asset value of such shares after all charges, taxes, expenses and liabilities of the Fund have been paid or provided for. The distribution to shareholders of the Liquidation proceeds will occur on the Liquidation Date, and will be made to all shareholders of record as of the close of business on the business day preceding the Liquidation Date, other than as disclosed below. The Fund’s investment manager, Hartford Funds Management Company, LLC (“HFMC”), will bear all expenses associated with the Liquidation to the extent such expenses exceed the amount of the Fund’s normal and customary fees and operating expenses. However, the Fund and its shareholders will bear transaction costs associated with the sale of the Fund’s holdings prior to Liquidation...
  • Moderna Plans to Quadruple Covid Vaccine Price
    The most recent data from Henry A Choy a UCLA biologist. He sends out irregular summaries of Covid. I can't remember where I heard of him or if you can email him and get on his mailing list but worth trying as he has very good data and references
    [email protected]
    "Although infections and deaths are trending down, the Omicron subvariant XBB.1.5 continues to grow outside of the Northeast, where it’s already dominating at 87% of new cases (CDC). In the West and Midwest, it’s at 24% (up 50% and 71%, respectively, in a week) and at 39% in the Southeast (up 26%). At 49% nationally, XBB.1.5 will eventually replace BQ.1.1, which has slid to 27%. 
     
    So far, the bivalent mRNA boosters remain effective in lowering the risks for serious disease and death. Besides the not-vaccinated having a 19-fold higher chance of dying from an infection than people with up-to-date boosters, the latter group is 3 times less likely to get hospitalized than those with only a primary series (CDC). 
    However, bivalent use remains low. Despite the safety of the booster for kids 5 to 11 (Update January 16), only 11.5% of recipients of a primary series have gone back for the bivalent (CDC). 
    Kids under 5 not yet eligible for a bivalent booster (Pfizer’s 3-jab primary series for this age group uses the bivalent as the 3rd dose) are not even getting their primary vaccination. Only 5% of kids 2 to 4 have a primary and 3% of those under 2 (CDC). For the kids under 2, this translates to the highest rate of recent emergency department visits for COVID, 5.0%, which tops the 3.8% for adults over 64. "
    How can you not vaccinate your kids? This makes refusing measles vaccine look like a good idea, I guess you can believe that since everyone else is vaccinated, there is no measles for you kid to catch, but clearly there is a lot of Covid still.
     
  • BONDS, HIATUS ..... March 24, 2023
    @Crash
    SCHP portfolio tab at M*
    Scroll down to the 'holdings' area for turnover, which is reported at 19%. This is within the normal range for similar funds with less than 50 holdings, with varying maturies.
  • BONDS, HIATUS ..... March 24, 2023
    For Treasuries, I chose TIPS. At SCHP. Schwab. Rock bottom ER. 12-month yield is 7.2%, but what is the average duration in the fund? Ah, that's the key.
    There's a goodly chunk of 1-3 years in there, followed closely by a slightly smaller chunk at 3-5 years. So, no one there is betting the farm on the long stuff, though there is a tranche, much smaller, at 10-20 years. And in between a not small portion with 5-7 year maturities. Guess they wanted to cover the waterfront. OK by me. Spread it out, some. Flexibility, yes? AAA-rated, of course.
    But I can't find a portfolio turnover statistic. This is very new money for us--- just got in a week or two ago.
  • BONDS, HIATUS ..... March 24, 2023
    maybe better days are ahead for VGIT, but it has been a miserable investment for 3/2/1y
  • BONDS, HIATUS ..... March 24, 2023
    “Is an ETF trade what you are thinking about?”
    Oh no! Just tossed out a guessing game if anyone has an opinion. If one was trying to trade the 10-year or other bond (or related fund) of high quality / intermediate duration, where on the rate curve would they be inclined to buy and at what rate would they be inclined to sell? My question assumes bonds will stay in some sort of trading range for a considerable length of time. Of course, that assumption might not be correct. Could be a “one-way street” (up or down) for rates, I suppose.
    The instrument used? Yes, it would likely be an ETF of some sort. Mutual funds wouldn’t work as well because of trading restrictions / fees - though if held directly at some fund houses you probably could trade on a 30-day basis without running amuck of the rules. Would depend in part on the amount. They’re most concerned with the big players.
    Thanks @catch22 for all your excellent reporting on bonds.
  • BONDS, HIATUS ..... March 24, 2023
    @hank
    This is a one year chart of the 10 year UST. You may hover the cursor on the graph line to see the yield displayed for a date(s) area. You may also change the 250 day range at the bottom right of the chart with a 'right click' onto the 250 day. This will provide several range choices, or double click the 250 days and enter the number of days you want to display.
    BUT, I can't pick a particular 'yield sweet spot'; other than what appeared to be and is still in place for a short term top in the yield around October 25 that has held for 3 months. Going forward and for how long will the yield decrease??? Magic 8 Ball cracked.
    The IEF etf is the closest fit for 10 year UST, at least relative to an easily traded etf.
    IEF has a return of 5.94% since October 25, 2022.
    Is an ETF trade what you are thinking about?
  • BONDS, HIATUS ..... March 24, 2023
    Is there a particular spot in the 10-year treasury yield that might be advantageous for buying or selling if one were predisposed to timing? (speaking of investment grade intermediate term bonds). ISTM perhaps 3.5% might be in the ballpark - the “sweet spot” so to speak.
    In December the 10-year peaked around 4.33% but then receded to under 3.4% early this month. Interestingly, that drop in rates to below 3.4% appeared to spark some interest in buying on the board / likely elsewhere. But then late in the week it spiked back up sharply to 3.48%. That degree of fluctuation in rates may not sound like much, but can lead to significant gains or losses for anyone “playing” the bond market.
    I submit the question merely as a curiosity. Not seeking or offering investment advice.
  • Moderna Plans to Quadruple Covid Vaccine Price
    Since October 20 of 2022 when Pfizer made its announcement it would raise vaccine prices and the market reacted by expecting Moderna would too, Moderna's stock is up 64% while Pfizer's is up only 5%. This makes sense as Moderna is a much more pure-play on the vaccine while Pfizer makes many other drugs.
    The other interesting factor here is evidence of how commercialization in the case of pharmaceuticals doesn't reduce prices as Adam Smith would like it, but increases them as there are so few players--from $27 per dose to a soon over $100 a dose. Meanwhile, even the debt ceiling and the new Congress's unwillingness to subsidize vaccines for citizens may be playing a role in Moderna's announcement as now the "free market" amongst only three manufacturers will determine the price. KFF illustrates the situation in the above link:
    The federal government has spent more than $30 billion1 on COVID-19 vaccines, including the new bivalent boosters, incentivizing their development, guaranteeing a market, and ensuring that these vaccines would be provided free of charge to the U.S. population. However, the Biden Administration has announced that it no longer has funding, absent further Congressional action, to make further purchases and has begun to prepare for the transition of COVID-19 vaccines to the commercial market. This means that manufacturers will be negotiating prices directly with insurers and purchasers, not just the federal government, and prices are expected to rise. Elsewhere, we have analyzed the implications of commercialization for access to and coverage of COVID-19 vaccines, finding that most, but not all, people will still have free access. Still, the cost of purchasing vaccines for the population is likely to rise on a per dose basis, though the extent to which it affects total health spending is dependent on vaccine uptake and any negotiated discounts, among other factors.
  • Moderna Plans to Quadruple Covid Vaccine Price
    It was in the news a while ago that Moderna and the NIH were in a patent dispute over mRNA technology. Moderna had filed a sole patent for its mRNA vaccine but the NIH protested that it should have been included as co-owner. Moderna let its original patent application expire/slide and may refile with or without the NIH - their talks are ongoing. If the NIH is included, how the Government will share in the proceeds, or whether it will independently license the mRNA technology, will be seen later. So, this is an unfolding story.
    As this link below shows, Moderna and NIH cooperated under informal arrangements during the Covid crisis. But it wasn't like a regular Government grant/contract that do have a clause that the Government has the right of first refusal for any commercialized technology. To encourage Covid vaccine or drug developments, the Government guaranteed advance orders to 8 companies for any products they may successfully develop (5 were for vaccines, 3 were for other types of drugs). It turned out that startup Moderna (without any prior commercial products) was more cooperative with the NIH/Government than Pfizer. Recall that, later, Pfizer didn't even want to give the Government priority in any subsequent/follow-up orders (beyond its initial guaranteed advance orders) until the Government threatened to use its powers under import/export regulations.
    As they say, this stuff/mess is complicated.
    https://ipwatchdog.com/2022/03/31/nihs-fight-ownership-modernas-covid-19-patent-highlights-hazards-business-collaborations/id=148040/
  • BONDS, HIATUS ..... March 24, 2023
    Stuck In The Middle With You, Stealers Wheel, 1972, a partial lyric for Congress.

    'Clowns to the left of me
    Jokers to the right
    Here I am stuck in the middle with you'
    While it would be highly likely that a debt ceiling impasse would affect bonds of all flavors, no secret with this thought, I suspect; one may wonder what the path will be until the dust settles. Bond holdings at this house will remain, as we can't guess what will be.
    The vast majority of Congress enjoy the debt, eh? Spending OPM (other peoples money) is ultimate power of high political office; 'a look what I've done for you', even if it's a 'bridge to nowhere'.
    --- Wednesday, BOJ.....has been fiddling with yield curve since Dec. of 2022. They wanted to maintain a base yield on the BOJ 10 year bond. This attempt has kinda gone 'poof' as global traders have other concerns for inflation in Japan. The thinking has been that a higher10 year yield would repatriate Japanese monies, as well as other potential monies into the Japanese bond market; which would draw these monies away for other foreign bond investments, which would include the U.S. bond market. Well, today finds a large downward move in U.S. yields, as folks apparently want UST and related again, and/or still.
    --- Wednesday, weaker retail sales and PPI data. As well as thoughts 'again' about a mild U.S. recession.
    --- Wednesday. For a small dot of time in the investing time frame, IG bonds performed as they 'should' when equity takes a 'whack'.
    Read the current Real Yield thread for other details, that may or may not provide any clarity.
    The other days of the week found me away from the 'desk'.
    Relative to the below performance info for this week: Most bond returns in the list were positive this week; with a few longer term duration with profit taking(?) . Several bond sectors remain with YTD returns as good as, or better than some U.S. equity sectors.
    ----------------------------------------------------------------------------------------------------------------------------------------
    ---Several selected bond funds returns since October 25, 2022. I'll retain this date, as it is a recent inflection point when bonds began to have positive price moves. We'll need to watch if this was just a 'blip'.
    NOTE: I've kept the prior dated reports in the beginning of this thread; and have added YTD to this data.
    For the WEEK/YTD, NAV price changes, January 16 - January 20, 2023
    ***** AGAIN, this week, FZDXX, MMKT yield has remained at 4.27% for one month. The core Fidelity MMKT's have continued a slow creep upward to about 3.95%. The holdings of these different funds account for the variances at this time.
    --- AGG = +.17% / +3.2% (I-Shares Core bond etf) widely used bond benchmark, (AAA-BBB holdings)
    --- MINT = +.23% / +.44% (PIMCO Enhanced short maturity, AAA-BBB rated)
    --- SHY = +.15% / +.67% (UST 1-3 yr bills)
    --- IEI = +.2% / +2.16% (UST 3-7 yr notes/bonds)
    --- IEF = +.18% / +3.5% (UST 7-10 yr bonds)
    --- TIP = +.44% / +2.08% (UST Tips, 3-10 yrs duration, some 20+ yr duration)
    --- VTIP = +.26% / +.71% (Vanguard Short-Term Infl-Prot Secs ETF)
    --- STPZ = +.3% / +.78% (UST, short duration TIPs bonds, PIMCO)
    --- LTPZ = +.61% / +5.43% (UST, long duration TIPs bonds, PIMCO)
    --- TLT = -.52% / +6.7% (I shares 20+ Yr UST Bond
    --- EDV = -1% / +8.7% (UST Vanguard extended duration bonds)
    --- ZROZ = -1.67 / +8.8% (UST., AAA, long duration zero coupon bonds, PIMCO
    --- TBT = +.92% / -12.3% (ProShares UltraShort 20+ Year Treasury (about 23 holdings)
    --- TMF = -2.15% / +19.6% (Direxion Daily 20+ Yr Trsy Bull 3X ETF (about a 3x version of EDV etf)
    --- BAGIX = +.2% / +3.02% (active managed, plain vanilla, high quality bond fund)
    *** Other, for reference:
    --- HYG = -.6% / +3.5% (high yield bonds, proxy ETF)
    --- LQD = +.07% / +4.9% (corp. bonds, various quality)
    --- FZDXX = 4.27% yield (7 day), Fidelity Premium MMKT fund
    *** FZDXX yield was .11%, April,2022. The rate of rise in the yield remained flat again this week.

    Comments and corrections, please.
    Remain curious,
    Catch