Events of the past week do mark a big turning point, certainly in the
history of the United States, possibly the world.
I think we are seeing cultural shifts - and these will effect investment results, and what we want to get out of our investments.
Many things we do will be re-thought. Consider that other investors will be re-thinking also...
I was just looking at the returns for High yield (junk bond) funds - you could see the NAV dropping prior to September. Even some of the high quality corporate bond funds have risks now. The Treasury bond funds tend to keep going up - you can see there is a long trend, with only small pull backs - much more stable.
I am buying more Tresury backed bond funds, especially the longer duration ones that still have high rate, and would benefit if long term rates come down.
During the 1930s depression, T-bills rates came close to zero. Don't think that will happen now, but I think rates will be lower, as we are seeing more deflation & bankruptcies.
Swissair just went bankrupt & stopped flying.
BLAGX is an example, available at Schwab & Fidelity.
I also bought a little of a bond fund that has the inflation indexed securities, just because I want to be able to buy more later , and the fund may be closed to new investors. It's from PIMCO funds, PRRDX, available at Fidelity.
>>I would suggest that many of the people on this thread may want to consider U.S. Treasury bonds or bond funds as part of their portfolio.<<
I'll let other people make the argument for precious metals - I have a small position in those also.
The bubble we had is not ending well, and there is increasing chance of extreme events.
Best of Luck to everyone, energyplay
Mountain View, California |
