....for PTTRX. 10yr yield way up, price way down. After almost (2) months of this, I have had enough. I have placed the order to sell all PTTRX. Of course, I will have to take today's loss, which will bring my total PTTRX losses to about 1/2% (0.05) of my portfolio. Not a big loss, but big enough. A year ago, Gross was reportedly "shorting" treasuries (which he denied). Around the first of May, he reportedly said that the 30 year bond bull market ended April 29. I took that as a sign that, if he was not shorting treasuries, he at least was very short duration. Apparently not. I will stay in cash at least until the stock market drops significantly. And if I have to I will stay in cash long-term, years if necessary. Of course, with interest rates rising, cash is starting to look better. By the way, the smartest move I made in the 401K was roundly critized on this forum over a year ago. but for 18 months now a (small) portion has been earning a steady 4.25% Too bad a lot of that went out the door over the past (2) months, but with the losses stopped after today at least things will be going in the right direction.
Very bad GDP numbers this morning. Already affected stock futures. Will be interested to see the impact on bonds. After all, bad economy is not good for the bond buying scale-back plans. Quite honestly I don't believe in this economy or the Fed forecast for improvement. And all the stuff coming out of DC will not foster economic growth....indeed it will impede it.
I don't think 1.8% GDP is bad, it was lower than forecasted (2.4%). Its not great, but we are pushing forward positively, and 1st Q GDP is historically lower anyway due to seasonality. Anyway, DoW is up triple digits, so market took it as QE will continue, I felt the recent sell off in stocks was silly, and presented a buying opportunity which I took advantage of. Of course, it is exactly what longs wanted, since the market has not had a pullback in quite some time, so the 6% correction, was perfect. Time will tell if the sell off is over and if new highs will be made, but it seems to have currently exhausted itself last Monday when the Dow was down ~250 pts in the AM only to close down about 135 points.
In other news, 10 year was lower to 2.54%, so looks like PTTRX might be up at the end of the day today. That would be consistent with bond holders now believing that 85B a month will continue into 2014 based on lower than expected GDP for Q1 2013. But, its early still...
Apparently that impact is good. Both AGG and BND are up this morning as is equities.....because of bad news. Amusing....everything old is new again. Benny and the Inkjets can't quit their act if GDP sucks....which will probably impact employment. Looks like I may be taking advantage of Fidelity's free transaction iShares ETFs and trade with impunity.
Right you are, I just took a quick peek at the 10 year and its exploding higher, so glad I got out of this fund years ago, its been dead moneey for the last decade...
So 10 year is at 2.60% as of now yesterday it was 2.54% close, which is good for a 6 or 7 cent haircut today if it holds...
Probably a good move. I sold about 85% of my holdings in PTTRX last week. The gov't has artificially held down interest rates for quite some time. We know that Bernanke plans to ease off the bond purchasing by the gov't (QE). So we KNOW interest rates will rise....they must rise to attract new buyers. It's not a matter of timing the market. It's a matter of timing Bernanke. I would expect to get back in at some point below 10.
You are sealing your losses.....don't blame you if you are in the realm of retirement years. If you are a long way off this is a bump on the road that time will patch. I expect to be buying pttrx again soon instead of selling off more.