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As usual, disregard the noise and follow markets in real time. In mid April 2025, after I was out for several weeks I posted that for the first time in my life I invested directly in an international fund. A couple months later, I increased it to 99+% of all our money. It is still there. For "sub" cash HOSIX and SCFZX have done well. See the chart vs PAAA, and AGZD.
I was looking at TBUX as a MMKT substitute as well. The slim margin of improvement is not guaranteed for 2026, but we have to try. Receiving only ~3.5% on cash will not cut it in this environment, and we all know that the buffoon would like to cut rates further.
When I go to buy these things called "groceries" (such a strange word to some, groceries) or durable goods and prices keep going up, it puts pressure on to reach for yield.
Inflation has not subsided contrary to what was promised early last year. The current administration insists on a much lower fed funds rate. This imprudent policy, if implemented, will only exacerbate inflation. Higher real yields generated by MMKT and "near-cash" funds are more important in the current environment.
On a loaf of good bakery bread here in Northern CA- from $5.50 to $6.00 in one week. That's about 10% folks, and just one item of many groceries that are going up... up... up...
We prefer active bond managers/funds over index fund. Our 401(k) has only BND and TSP G funds. In IRAs, we invest in multi-sector PIMIX, PYLD, and RSIIX (MFO considered it as flexible income), oversea DODLX and NRDCX.
This year, we are moving away from bank loan funds and we turned more cautious. Still think about EM bonds.
Comments
In mid April 2025, after I was out for several weeks I posted that for the first time in my life I invested directly in an international fund. A couple months later, I increased it to 99+% of all our money. It is still there.
For "sub" cash HOSIX and SCFZX have done well.
See the chart vs PAAA, and AGZD.
https://schrts.co/qInPfZAf
When I go to buy these things called "groceries" (such a strange word to some, groceries) or durable goods and prices keep going up, it puts pressure on to reach for yield.
The current administration insists on a much lower fed funds rate.
This imprudent policy, if implemented, will only exacerbate inflation.
Higher real yields generated by MMKT and "near-cash" funds are more important in the current environment.
FALN wins by Total Return, though. (1-year chart.)
investment grade (aka "fallen angels").
This year, we are moving away from bank loan funds and we turned more cautious. Still think about EM bonds.