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Bond Funds?

WaltJ
edited September 2012 in Fund Discussions
Are folks holding a percentage of their portfolios in bond funds these days? The standard investment advice is that one should hold a percentage of one's assets in bonds (what percentage depends on multiple factors). However, the present time doesn't seem very favorable to bonds, given that interest rates can't fall further, and at some unknown point in the not-too-distant future, interest rates will rise, presumably causing bond funds to decline.

If yes, what bond fund(s) do you recommend and why?

Thanks in advance.

Comments

  • Old_JoeOld_Joe
    edited September 2012
    By circumstance, there is an excellent interview with Robert Kessler, discussing the probable direction of interest rates referenced in a recent post by bee. I highly recommend that you view that in full before making assumptions regarding the possible direction of interest rates. After introductory remarks (and commercials) the actual interview starts about five or so minutes into the video.
  • MaxBialystockMaxBialystock
    I'm holding LOTS of PREMX. Yes, your premise makes sense on its face. But since (early) retirement, I'm watching more Bloomberg tv. There are still FOREIGN places where interests rates suddenly, surprisingly, drop. And in some other countries, central banks are EASING, stimulating, like the USA. I saw something along those lines just last night. My other bond holding is domestic, with Uncle Jeffrey Gundlach: DLFNX. He has me convinced that he knows what he's doing.
  • STB65
    A
  • STB65
    Some PREMX in a rollover IRA; much more FNMIX (14% ytd, but I've been adding for several yrs) since it's my 403b platform; toe in ADBLX (5% since I got in this yr) and RNDLX (10% since sometime last yr) in a rollover IRA. Perhaps Gundlach deserves his reported arrogance.
  • hank
    edited September 2012
    Be careful. Linked article (from April) says Treasuries in blow-off stage & nearing end of 30 year bull run. I'd expect some spillover to other types of bonds when this thing comes down.

    http://peterlbrandt.com/treasury-bonds-in-final-blow-off-stage-of-30-year-bull-market/
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