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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (38600)7/24/2010 12:03:29 PM
From: Investor2  Read Replies (2) of 78752
 
RE: "Your post indicates a quandary some of us may have who've bought utility stocks in early '09. And that is, that the stock prices have come up on most, if not all of these stocks, and with that, the dividend yields have come down (even on those that have raised their distribution). So what do we do now?"

That is similar to a quandary I find myself in regarding my investment in Vanguard GNMA fund. The price has appreciated so much that the yield has now come down to 2.93%, far below the typical yield for this fund. While I recognize that utility stocks are equities and GNMAs are bonds, the investment purpose is not that far apart.

What do we do now, when the interest rates have dropped to very low levels? Do you invest a percentage of your portfolio in fixed income investments?

Thanks,

I2
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