Monday, June 17, 2013

http://seekingalpha.com/article/1498752-the-death-of-bonds-is-greatly-exaggerated?source=intbrokers_regular

I like this post.  It is well reasoned and urges calmness in the face of volatility.  All good traits.

I agree with the conclusions as well.  There has been no evidence that the sell off in bonds is due to stronger economic growth prospects or inflation expectations.  I remain with the view that there are lots of good buying opportunities right now - loans (VTA or VVR), preferred stock funds (JPS, JTP) munis (MHN) as well as any favorite dividend stocks that might have been sold off prematurely.  Utilities may be in this group as well XLU, but I do not have any at this point.

Up days like today are good for trimming any unloved positions and then waiting to buy into your favorites.  It is probably best to "leg" this spread - sell, then wait until a better price and buy.  There is risk in this approach, but we have been seeing enough volatility to warrant it.







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