FKINX at 2.34 , lowest in years.No reason to think it will be coming back up any time soon , specially being heavy in Bonds and stocks such as BA is it time to cash out ?? or is it wiser to stay the course and ride the down slid. Note:If one is retired and has most of assets in this fund.
The biggest fear for this fund to me is not BAC. BAC is a very sound financial, and is a good core holding for the fund, its just a baby in the bathwater right now,as for the dividend being cut on BAC its the rise on yields in the bonds especially the more junkie ones that will keep the funds yield in check. THE REAL RISK to a retired investor holding FKINX for income is the long term drop of the Dollar! Plain and simple, The Dollar is the Worlds Benchmark Currency and look where we are, The Dollar's steady drop has sparked up Inflation, INFLATION!!! Our Fed is letting Inflation ramp up While Going full thottle on the printing presses for the Dollar (to help the so-called slowdown and mortgage mess). And its been that way since Bush took office, Funny how now only recently the Inflation Cat has its head out of the Bag, Its sure been a good long cover up. When the Cat gets out of the bag completely its going to take a massive sea-change in Policy to catch and put the Cat back where it belongs. A million dollars today is probably like one hundred thousand dollars in 1980, in the near to intermediate term I think Inflation is going to get worse, Only until recently has Inflation Accelerated so watch out. Doom and Gloom! The USA and the Dollar will come back no doubt about it but its going to take time alot of time to reverse the damage and when the fight is over the landscape will never be the same. So I what im saying is if your holding this fund in retirement pay attention to the Dollar we need it to Buck the Trend, No Pun intended.
I haven't seen a response to this question, unless I am missing something (I am new to this forum).
So what is coming next? As most funds are, this MAJOR one is down MAJOR. At $2.29, does one go by the "textbook philosophy" of buying low (I came in two years ago at $2.54), or avoid further losses and "run."
I await your reply from those of you who are more "learned" than I.
The only thing this fund has going for it right now is the Dividends..IMO I cant see why they hold onto BAC when it's rumored they will cut or reduce their dividend. Not to mention how the stock price has gone down. They did the same thing with Washington Mutual. I'm a long ways from a Fund Manager but it doesn't look good right now.