Bonds

Thursday, June 17th, 2010

« “To frustrate the most number of people” Commentary for June 28, 2010 »

Much like the vuvuzelas at the World Cup, there has been a steady drone of interest rate pundits calling for higher rates. Invariably the bond market has remained strong despite calls for inflation and higher rates.

We are in the camp that believes higher rates are inevitable. We have kept maturities short with increased positions in both Payden GNMA (PYGNX) and Pimco Total Return (PTTDX), added some inflation protection with both the exhange traded fund (TIPS) and Vanguard Inflation Protected Fund (VIPSX) and sprinkled in some risk with both Ridgeworth High Yield (STHTX) and Loomis Sayles Bond fund (LSBRX).

There are no guarantees that rates are headed higher so it is wise for investors to stay diversified and invested conservatively but not TOO much so!!

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« “To frustrate the most number of people” Commentary for June 28, 2010 »

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