Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (5902)	6/15/1999 7:35:00 PM
From: David Bogdanoff	Read Replies (1) \| Respond to of 15132

I2; Fact is, one doesn't know how long you will be investing your money in a GNMA fund. The mortgages go out for up to 30 years, but the borrowers can pay-off anytime, and usually do so as rates decline, resulting in an early return of some capital(i.e. the checks are not pure interest). I read an article in the WSJ yesterday comparing an number of GNMA funds, and Vanguard did very well in that comparison, but the 12-m. return was still less than 3%. I suppose this low return was due to a decline in the fund which occurs as interest rates rise. david