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Strategies & Market Trends : Bonds & Bond Funds

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To: Jurgis Bekepuris who wrote (136)10/22/2009 9:55:27 AM
From: Rock_nj  Read Replies (2) of 161
 
Here's one for example. GMO Strategic Fixed Income VI (GMFIX)
finance.yahoo.com

It has an outstanding yield but a buy in of $300 Million. Obviously for institutional investors. Many others with these super high yields have large buy in over $1 Million. They don't want the retail investors. But is there another fund that takes retail investors with a low buy in and then invests in these super high yield funds?

I am weary of bond funds with interests surely going higher in coming years from today's low levels, but I also find it interesting that when looking at the long term charts for bond funds they did well in the mid part of this decade when interest rates were higher and had their big dips in the 2001 - 2003 range and late 2008 and early 2009, both times when interest rates were dropping but there was economic chaos. So, I'm a bit confused about the real link between bond fund prices and interest rates. The bond fund prices seem more tied into the overall economic than interest rates from what can be seen over the past decade.

Thanks!
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