Long term maturity bonds gives more dividends than short/interm term maturity bonds
The tax free interest on long term bonds if reinvested will be enough and plus to offset whatever will be shaved by the rising interest rate.
must remember that ORNAX OPTAX and RMUNX are already discounted by 9-10%. per MORNINGSTAR
Average weighted price is in the 90s-91
Those talkers from the financial media has been predicting the rapid rise in interest rate since 2010.
Why will the FEDS do that? Why will the FEDS ruined the improving economy? It will be the opposite of their long plan for the US. This year and last year the FEDS didn't even pay some of US debts. They want to build up CASH for cushion in case of another recession or 2008 crisis.
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.