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.
I have some of this (alas not as much as I should) to diversify away from junk. Not sure how long it can last but what a nice looking chart. On an unrelated note, I have this uneasy feeling that times may be a changing in the stampede into bond funds out of U.S. equity funds and some of us, me included, better get their act together and ramp up their equity fund exposure.
Hi there Junkster/007- the thing there is that the equity funds for the most part are almost as high as they were in the spring. Not many bargains left. I took profits in that area in March and April, and have been quite surprised to see the equity stuff pretty well hold up during the summer. Smart money seeing a decent recovery, heading to equity? But since when is the "smart money" in ordinary mutual funds to any great extent? WTF is going on here anyway?
Hi HY, My old memory cells recall that you considered becoming Stockster during a period at FundAlarm. Did you move into some of the equity area and away from junk then? My best guess for this note is about 2 years ago. Regarding MWCRX. I took a quick peek at data....not the prospectus; and find the bond duration listed as 1.25 years and maturity at 3.4 years. The turnover is 29%, while holding about 245 issues. Cash is reported at 20%; although I don't know "cash" means for this fund. Perhaps the cash is TIPS or related. With the reported + 11% YTD return; I am wondering what these folks are doing with the available tools for this fund. This is quite a performance based upon the above listed mini-data notes. I am with OJ at the moment as to whether some type of cross-roads is in place or if we will be played like a well tuned fiddle by the big houses. As the old time tv ad once pronounced for Wendy's, "Where is the beef?" There are so many monetary and political headwinds at this time for the next 9 months; I will suppose a coin toss for an investment may be as good an option as fundamental analysis, although the tech. charts may provide some clues; albeit too far past a safe harbor mooring. As I have recently noted; if some of the monies don't like bonds much right now, where in the heck is it traveling? Regards, Catch
Catch, what a super memory about changing my handle to Stockster. I did go a bit into individual stocks and to be perfectly honest stocks aren't my thing. I don't have the patience required. That's why this time around it will be equity funds like back in the 80s and 90s. Still, it has pretty much been junk bond funds for me since that fateful day in mid December of 2008 where after the Fed meeting the Chairman pretty much gave the all clear for that asset class. But alas, most investors were too panicked then to listen.
Only thing we may not agree on in your above post is your reference to all the monetary and political headwinds over the next 9 months. I know you know about markets climbing walls of worries and if there were no headwinds everyone would be equity bulls and making money and markets simply don't work that way. It's once all those walls of worries are torn down and it looks like clear sailing ahead that the bear returns. The U.S. market and even more so the European markets have done a pretty darn good job climbing all the walls of worries in 2012 and if that continues a lot of investors will be left further in the dust. Of course, personally I prefer the muddle through route where stocks gyrate all over the place and investors continue plowing money into bond funds and yields continue shrinking. Thus junk and its bond cousins on the risk curve in bondland will continue roaring ahead. But I am not sure how much longer the market wil keep accomodating me on that scenario.
While I don't disagree with your overall thesis - the argument could be made that European and Asian markets are still oversold. I think that investors who have U.S.-centric approach may find themselves in trouble. Many funds in the global space have stock portfolios still selling at discounts compaired with our markets. And I also believe that the higher yield provided by international companies will entice many
Comments
MWCRX
My old memory cells recall that you considered becoming Stockster during a period at FundAlarm. Did you move into some of the equity area and away from junk then? My best guess for this note is about 2 years ago.
Regarding MWCRX. I took a quick peek at data....not the prospectus; and find the bond duration listed as 1.25 years and maturity at 3.4 years. The turnover is 29%, while holding about 245 issues. Cash is reported at 20%; although I don't know "cash" means for this fund. Perhaps the cash is TIPS or related.
With the reported + 11% YTD return; I am wondering what these folks are doing with the available tools for this fund.
This is quite a performance based upon the above listed mini-data notes.
I am with OJ at the moment as to whether some type of cross-roads is in place or if we will be played like a well tuned fiddle by the big houses.
As the old time tv ad once pronounced for Wendy's, "Where is the beef?"
There are so many monetary and political headwinds at this time for the next 9 months; I will suppose a coin toss for an investment may be as good an option as fundamental analysis, although the tech. charts may provide some clues; albeit too far past a safe harbor mooring.
As I have recently noted; if some of the monies don't like bonds much right now, where in the heck is it traveling?
Regards,
Catch
Only thing we may not agree on in your above post is your reference to all the monetary and political headwinds over the next 9 months. I know you know about markets climbing walls of worries and if there were no headwinds everyone would be equity bulls and making money and markets simply don't work that way. It's once all those walls of worries are torn down and it looks like clear sailing ahead that the bear returns. The U.S. market and even more so the European markets have done a pretty darn good job climbing all the walls of worries in 2012 and if that continues a lot of investors will be left further in the dust. Of course, personally I prefer the muddle through route where stocks gyrate all over the place and investors continue plowing money into bond funds and yields continue shrinking. Thus junk and its bond cousins on the risk curve in bondland will continue roaring ahead. But I am not sure how much longer the market wil keep accomodating me on that scenario.
While I don't disagree with your overall thesis - the argument could be made that European and Asian markets are still oversold. I think that investors who have U.S.-centric approach may find themselves in trouble. Many funds in the global space have stock portfolios still selling at discounts compaired with our markets. And I also believe that the higher yield provided by international companies will entice many