Many issuers are calling back bonds at faster pace.
Agreed. That is how I see it in the long term.
Once you reached the retirement age, you can't afford to fool around with stocks. Might be hard to get back. what you lost.
For me, I will stick to my investment philosophy. Continue to invest for income and not to worry about the
interests rate fear mongers who has been predicting a sharp rise in interest rates for the last 5 years.
A decline in Funds NAV is not a loss unless SHARES are sold .
Just my 2 cents.
I used to be 50/50 ORNAX/RMUNX.
Now I need the dividend flowing so I somewhat overweight on ORNAX 65/35 and reinvest half of the dividends.
The 2 FUNDS will be here for a long long time. RMUNX remains the flagship of Rochester.
I agree with you that the rise in interest rate has to be significant to make a dent on high dividend paying
bond funds. If ORNAX lower the dividend again then I might have to reshuffle. I don't worry much on PR.
I believe the drop in NAV is from selling and buying new bond holdings and in addition to bond outflows in anticipation with the FEDS next move. Also it is a TAX season.
One thing for sure , this economy is not on the middle class side.
For the seniors, MEDICARE prescription has gone up 3 times and just wait till the minimum wage goes up from 7.25 to 10.10.
I don't think it is working. Go to quotes, click on the right side "max" the chart will appear then click on comparison ,,,,,,,,,try it
For fear of interest will rise soon....well, it can't stay this low forever.
It would take a marked rise in interest rates for long term fund investors invested in HIGH YIELDERS to worry.
Unless the Fund Managers keeps lowering the dividends.
Hard to believe that GREECE economy will improved in 4 months..
.......Maybe the "DEAD CAT" will bounce twice......... huh.... it surely didn't happen to LEHMAN
For the meantime enjoy the electronic trading.
I think PR bond is already priced in with the NAV.
Nationally BOND prices now are getting cheaper/yield rising, should be a plus to "long" investors. FUND managers can buy cheaper bonds. RMUNX, ORNAX OPTAX OPITX will stay for a long long time.
Just my two cents.