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Funds Boat, allocation changes.....5.14.12

edited May 2012 in Fund Discussions
Howdy,

For what it is worth...............
Regardless of the current mood swings in the equity sectors, I do not like the implications of EM bonds having larger down day percentages than many equity funds. This action will continue to follow through strongly today with a likely -1% range. I see this action as twitchy money moving to other places with less credit quality risk and related.
Our FNMIX holdings have been greatly reduced; as well as TEGBX, which has followed the EM bond sector decline very closely. As we have some limited choices in some retirement accts.; the monies from these sells were moved either to FBNDX and FTBFX.
Tomorrow we'll take another review of the equity holdings, too. And Greece is still in the picture, eh? Asia should hold some better clues with the Tuesday open there.
U.S. retail sales and a few other reports will be presented this week. Whether the numbers are of value to the market place remains a mystery.

Scott and Hank, the above should cause some head shaking from both of you. Regardless, if either of you ever threaten to stop posting or leave MFO, you better have a darn good reason.........I'll track you down to change your mind. All here need and enjoy your continued input.

Regards,
Catch

Comments

  • edited May 2012
    I fully believe that you are doing what is right for you and I fully agree that those in/near retirement age should be conservative. I have a lot of concerns about a move to treasuries that does not seem sustainable and could reverse in a rocky manner. However, solid investment grade bond funds that are well-managed are probably fine, at least for a while.

    The only thing I really don't understand is the appeal of treasuries at these levels - I just think the fundamentals are terrible and you're not being paid for the level of risk.

    Again though, I don't have any issue with what you're doing and believe that you've managed your portfolio in a way that's right for you - and you've posted the results, which - for the desired risk level - are very good and consistent.

    I can not get treasuries at these levels and I'm rather concerned that maybe the rush for yield by everyone and their cousin will cause problems down the road (some dividend stocks still seem a little overbought after the recent market tumble), but at my age - different situation. I wouldn't want someone at/near retirement age to take some of the risks I'm taking.

    I do think - and agree with an excellent article from Pimco All Asset manager Rob Arnott that was posted a while back - those near retirement age are not going to take risk and that's going to create headwinds for assets.

    I don't think you should sell TEGBX or FNMIX (especially the former), but everyone knows their own desired level of risk.

    Bad News For Boomers (Arnott/WSJ)
    http://online.wsj.com/article/SB10001424052970204795304577223632111866416.html
  • Hi scott,
    Mr. Arnott's article that I believe you posted recently, is one of the better assessments going forward, in my opinion.
    Have to watch and find how all of this comes to pass for the portfolio.
    Thank you for your comments.
    Catch
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