May 19, 2015 Well kids today we are adding a bond fund in the IRA account.
PONDX, PIMCO Income Fund, is a very short duration multisector bond fund which is good during a rising rates environment. If rates go up, if ever, you will see a very small negative change in the price. (You do NOT WANT to own long term bond funds right now and if you own those, I suggest you sell them.)
PONDX is at $12.47. You could go up to 10% of the portfolio. Morningstar gives this fund five stars.
Here is some descriptive copy for PONDX:
Targets high, consistent income
Designed for investors who need steady income, the fund takes a broad-based approach to investing in income-generating bonds. It employs our vast analytical capabilities and sector expertise to help temper the risks of income investing.
Why Invest In This Fund
Pursues income across global fixed income sectors
The global economic landscape is constantly changing, causing different bond sectors to go in and out of favor. The fund’s multi-sector approach allows it to seek out the best income-generating ideas in any market climate, targeting multiple sources of income from a global opportunity set.
Total return approach to maximizing income potential
While maximizing current income is its primary goal, the fund also seeks long-term capital appreciation and attractive risk-adjusted returns. This means that while the fund is going to seek out the highest possible income for investors, it aims to not sacrifice quality or principal.
Ability to be opportunistic
The fund can tactically shift portfolio weightings, moving to wherever we believe attractive yields can be generated in this increasingly complex and volatile investment environment. This flexibility helps the fund to nimbly capture opportunities as economic and market conditions change.
Movies. Mad Max. The ‘enemy’ chases a tanker across the desert with two hours of shooting and bombing. How stupid. Hours of gun fire and blowing things up gets really tired. Probably good for the younger male you likes video games. It’s ok if you like this sort of thing, otherwise stay away.
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Do not buy any positions mentioned here until you view Current Positions.
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