I am not one who can predict when to get in/out of an asset class. Instead I just have a diversification plan that I try to stick to. I am 50 and only have about 7% of my total portfolio in this (about 55% in US stock, 15% in foreign stock and rest in bonds/cash (including emerging market sovereign debt which I like now).
With that said, I do think we are a cusp of a bond bubble - but I have been saying that for a while now and this fund, for what it is, has served me well. Being in TIPS comforts me some - I am sticking with it (but am no longer contributing)
Trying to decide regarding my bond allocation between these three funds. TGLMX/DBLTX is much heavier into mortgage-backed securities which got my attention with QE3 buying $40b/month of these securities. I am seeing a yield of 6.3% on TGLMX and wondering how they are getting such a high yield on MBS's. Are they returning capital and 'faking' a high-yield?
Why is the beta for this fund (a bond index) so high? I have only followed it for a short while, but it seems to have big swings. I know it is a long-term bond index which has high interest sensitivity, but it still seems high?
Considering moving some funds into this. I see that it is 25% in cash. While with the recent market turmoil that seems wise - but is this a normal position for them? Are they one of those behemoths that can reallocate quickly? I am not a huge fan of funds holding that much cash it makes it hard for me to do asset allocation. Thoughts?
Show us your homework. Indicate your references. I don't mean this snooty - it just that there is nothing you have provided other than hearsay. That is not exactly due diligence
'20% in gold, that's nuts'. I would agree if this was your only fund/investment. But if you aren't positioning it as a core holding then the 20% it owns in gold is not an issue. Like all investments, this needs to be part of a diversified portfolio.
I agree with DavyBoy that 90% of your total portfolio in this fund is way too much...then again, I don't know anything about your situation. But that is probably too much tied up in precious metals and bonds. I keep about 8% of my funds in this particular fund. Overall I am 30% large cap, 28% mid/small cap, 13% foreign stock, 15% bonds, 8% cash and the rest in 'alternatives'. I am 48 yrs old.
Ahhh, that's the slight nuance I was expecting (that the dividend wasn't entirely income from the holdings but return of capital). Anybody know of a good, low cost, dividend paying fund that truly is paying out only income from the holdings?
I just thought there may be some 'hidden meaning' in how they calculate it. But with such a high yield and the fact this fund is at a historically low price - this seems like a no-brainer buy for someone seeking the safety/hedge of dividends. is it not?