No. of Recommendations: 0
VFIIX and FGMNX are near all time NAV highs going back to 1987. VFIIX seems to have traded in a range between 10 and 10.50 for most of the time since 1992. FGMNX has a larger range than VFIIX. Every time I do the math I get the same answer: bond funds spend most of their lives fluctuating +- 5% around a slowly moving "mean", with max excursions being +- 10%.

I would love to get the 4.69% quoted yield but after 2008 I can't stand the idea of losing even 5% of my principal. So I'm going to farm out to 6-12 month CD's until the dust settles.

Ideally I could be in muni's because the default rate has historically been so low but I agree with the other posters that these are new times and, unfortunately, I live in the dumbest state in the union, California.
Print the post  

Announcements

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.
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.