I had 70% of my 401k in Pttrx and 30% in stocks in my 401k for the last few years. I sold Pttrx at 11.17 and put it into a MMF for the time being. I do not want to buy stocks this late in the market rally so I will just settle for keeping my money safe until the dust settles. I do think in the future Pttrx will become a buying opportunity and I will keep a close eye on the stocks that I do own. Its sad there is no game in town to make money safely anymore.
The market is forward looking and IMHO the future rate increase is mostly priced in already. I would be very surprised if this fund went below 10.85 at 3% 10 year yield... this fund is made up of more than just 10 year notes.
They've already paid it out. It should be in your account. Unfortunately, the NAV price drop has more than exceeded the dividend, so you may not even notice it. And it looks like it's going to continue downward. It will be another down day today. Gross continues to say he likes 10-year bonds, which means he can't accept that he made a mistake increasing his holdings to 39%, and he's not willing to cut his losses and accept the mistake.
I've been 70 to 75 percent equities for quite awhile now. Pttrx has my bond positions. I don't see the signals to stay in bonds to be quite honest. Everyone jumping on the equity bandwagon now so they don't miss the boat. Problem is the boat had long since gone. Buy equities when fear is in the air. Classic mistake to play defense with the rest of the herd. I do believe there is still upside but a great opportunity has seemed to have passed.
Are you kidding me? Everybody is screaming about all the 'problems' we have going on right now. Like, the fed QE program, and how 'tapering' might start, but maybe not... and inflation, ya, that's a big one for what, 5 years now? Remember 2007 how inflation would make the dollar worthless in a few years and gold would be $7000? Oh, how about the Euro-zone problems, which has hardly anything to do with American companies. Or that China grow has 'slowed' to 8%??? Whoa, get out the horse and ride off into the sunset on those fears! Right??
You see, when there is fear, there is opportunity. Once the market become euphoric, then its time to get out. I don't see euphoria occurring for quite some time, so buy the pullbacks if you have the cash. But I would definitely reduce bond exposure, unless you are OK with flat at best returns (after adding back the dividends) and then losing money overall when you consider inflation.
Why not wait a bit, pttrx has to go lower in the near future. First mention of raising rates it will probably dive for a while. I am waiting for the same thing. I got run out of here talking 10.75 a couple months ago.
75% of your portfolio into PTTRX? I really don't have a reason why you shouldn't. I mean, it pays a dividend that comes every month and is solid year in and year out. I think it's a bit high of a percentage to allocate almost everything you have, but you have to do what will allow you to sleep at night. PTTRX lets a lot of folks sleep just fine. Then again, it depends on what you're trying to accomplish with your portfolio.... Good luck!
I've been 52% in stocks and the rest in bond funds and cash like assets since 2009. My problem is keeping myself from getting greedy and increasing my percentage in equities during this crazy multi year rally. i know in my heart that as soon as I substantially increase my equity percentage, the stock market will start falling.
Currently, when the market rallies I'm glad that I'm AT LEAST 52% in stocks and when it falls I'm glad I'm ONLY 52% in stocks.