Anyone concerned about the inherent risk in the fund due to the 30% allocation in bonds? It obviously reduced the risk as the econ turned sour but at this point, with historically low rates, massive Gov spending, I'm starting to worry the next leg could be underperformance.
TOP 10 HOLDINGS ( 16.28% OF TOTAL ASSETS) Company Symbol % Assets YTD Return % United States Treas Nts 1% N/A 2.52 N/A AT&T INC. T 2.31 1.12 INTL BUSINESS MACH IBM 1.75 54.57 CHEVRON CORP CVX 1.68 10.48 WELLS FARGO & CO NEW WFC 1.64 -3.39 TOTAL S.A. TOT 1.46 23.12 EXXON MOBIL CP XOM 1.32 -2.67 JP MORGAN CHASE CO JPM 1.31 35.59 United States Treas Nts 1% N/A 1.16 N/A LILLY ELI CO LLY 1.13
That's why it is a balanced fund. Last year, as stocks tanked and bonds soared, the fund sold high priced bonds to buy low priced stocks in order to maintain the balance. If the bond market tanks, and down seems logical as the next major move, then the fund will sell high priced stocks to buy low priced bonds in order to maintain the balance. Buy low, sell high.