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Author: howardgt One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35365  
Subject: Re: Junk thoughts Date: 6/6/2011 7:06 PM
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What are the numbers in parenthesis?

Sorry for the confusion. The numbers in parens are NAV prices . (6.1) is $6.10.

Why do you say a chart of NAV prices is meaningless? I consider buying at or near the cycle low as “a good time to buy”. Good enough for me!

From the link to the Yahoo chart, you can also get distributions (all the way back to 1989). Go to historical prices and click the “dividends only” button:

http://finance.yahoo.com/q/hp?s=VWEHX&a=06&b=10&...

But I didn’t use distributions (or yield) because this was a simple comparison. Also this fund is a conservative junk bond fund and consequently they hold very little C or lower rated bonds.

The point I was trying to make in this thread is that at the bottom of a recession most of the companies that are going to default have already done so, and the survivors have access to easier credit going forward. The bond fund NAV price trend shows that bond prices have begun to rise again and credit conditions are improving.

Personally I do NOT buy bond funds anymore. I just use them as an indicator of market conditions. I find a diversified individual bond portfolio greatly outperforms funds. Probably because funds are forced to sell low (when panicked shareholders are cashing out near bottoms) and buy high (when the public flocks to junk at the top)


Howard
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