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Strategies & Market Trends : Retirement - Now what? -- Ignore unavailable to you. Want to Upgrade?


To: Neil H who wrote (263)11/30/2010 3:35:29 PM
From: OldAIMGuy  Respond to of 288
 
Interesting article on the state of the bond market:

Is the Tide Turning?
by Mark Hulbert
Tuesday, November 30, 2010

finance.yahoo.com

Most of my bond positions have been generous enough in the last two years that I've been able to accumulate a healthy cash reserve. If the bond markets do sag going forward, I'll eventually use that cash reserve to add to the bond holdings. That effectively will average down the Price/Share of my current positions and average up the effective yields.

Currently my bond funds have between about 15% and 30% surplus cash on hand. That will help to cushion the downward slide and also eventually will be the "purchasing power" needed to accumulate then out-of-favor bond funds with fatter yields than today.

Best regards, Tom