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

To: Allan Harris who wrote (7605)	8/9/1999 2:06:00 PM
From: Justa Werkenstiff	Read Replies (3) \| Respond to of 15132

Allan: The yield is 6.7%. It would have been a mistake to purchase Ginnie Maes on October 8th when the 30 year hit 4.75%. The return figures show this fact now in the share price and the performance you cited In hindsight, MM were the place to be with new income money then. I would say that Ginnie's are a gift horse today just as equities were in October of 1998. Brinker sees long term interest rates not going much higher than this; A. Cohen is in the same camp. Re: "What if you bet wrong?" I have done that before with some stock picks. But let me be clear. This is not a trade. It is an asset reallocation move that people should consider for the long term.

To: Allan Harris who wrote (7605)	8/9/1999 2:20:00 PM
From: marc ultra	Respond to of 15132

Alllan re:Vanguard GNMA: YTD = -1.13% GNMA Category: YTD = -2.11%>> When long rates hit bottom last year I became concerned about potential losses in GNMA fund. I then called Vanguard and asked them what was the total return in 1994 which was the worst or near worst year for bonds. They told me I recall something like 1% positive for that year which gave me some solace. I have however stayed much heavier in cash then GNMA or other fixed as I've cut down my equities as I don't know how bad the rate rise can get and I do believe the secular bull market in bonds ended last year. My only problem now is the moving charge and the bank surcharge when I bring my mattress with my cash into the bank periodically Marc