No. of Recommendations: 2
As you can see bond funds look real good through the review mirror.

http://finance.yahoo.com/echarts?s=^TNX+Interactive#chart1:s...

As yield decreases the value of the bonds in the fund increase creating stellar results. The question we need to mull is where can bond funds go now that the Fed has the overnight rate at zero and has entered the market to buy bonds further up the maturity chain to keep prices low?

With a duration of 5.1 in order to get near past performance the 10 year would have to drop by 2% - 2.5%, how likely do we think that is?

With that said, it seems that this team of managers has managed a pretty good fund and could be expected to continue to do so. I just would not anticipate double digit returns.

jack
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement