I've been a successful investor for over 30 years, and I was transitioning to PTTRX for retirement income I 2014. Last week I went to all cash for a while until this uncertain market settles down. My individual bonds have always paid well and returned principal. Maybe it's back to that....
Sentiment: Strong Sell
Why do you think the market is so uncertain? Are you fearful? That should scream 'buying opportunity' in your head then. I mean, seriously, when was the last time everyone 'knew' the market was going to 'tank' and it did? Think about that for a minute. Maybe you have a nice nest egg already, maybe then consider putting just 25% into the market.
Anyway, my point is if so many issue are 'known' yet corporations are continuing to make record profits, is that a bad sign for corporations? What do the employment numbers really have to do with the price of a stock? Not much really. Good luck with your investments.
Fed intervention, 200 point Dow swings from one day to the next based on the thinnest of reasons, and headlines of Fears, Hopes, or Optimism. The Fortune 500 company I work for has stock price has swings of 3-5% without any underlying business basis. I have enough investments for retirement and locked in my gains.
"...Maybe you have a nice nest egg already, maybe then consider putting just 25% into the market..."
If he has a nice "nest egg" already, why would he want to take the risk? If you have already won the game, why continue to play?
I think people misunderstood the decline of value of PTTRX shares. This is not equity. What is happening is PIMCO is decreasing assets which they think will fail or something. This decrease is not reflected in the asset price instead will be distributed when time comes. I have been in PIMCO for 14 years now and I have a steady gain.
I too am retired and have been restructuring my portfolio to hold more income generators. As rates move up, this fund's portoflio will in turn rotate into higher interest bonds. NAV will rise again One just have to wait a few years. I believe there will be a two year lag. This fund is not a traders stock. I'm not interested in capital gain, just income. Once A/B+ bonds return to 5-6 %, I m out of equities and into a laddered portfolio of bonds.
I am retired...And while you are in all cash I will be getting my dividend and adding shares at the lower price. Long term I'll come out on top...this is not equities. Might look at other past 5-10% moves.
I agree conga5, i began moving into mostly cash this week. I'm not riding this out right now. While I believe businesses are in good shape to continue making money there are too many things affecting this market to make it not worth the risk of my savings. I can ride on cash for a long time. I can't take a major correction right now, no need to gamble.