Good afternoon. I recommend clients sell their positions in several bond funds (see list below). The main reason is the kind of bonds these funds invest in have not been as helpful as expected during current market conditions.
If you want me to sell all positions you have in any fund on the list below, please let me know by e-mail or phone. If you want to sell specific amounts or only certain funds, please let me know by e-mail or phone.
If you want to discuss your specific holdings, let's schedule time for that today or tomorrow.
What to do with the cash from selling these bond funds? Here are the three choices I recommend:
- SHY--iShares 1-3 Year Treasury Bond ETF (short-term bonds)
- one should read the Prospectus before investing in a mutual fund
- SWVXX--Schwab Value Advantage (money market fund)
- one should read the Prospectus before investing in a mutual fund
- Bank Sweep cash (FDIC-insured bank deposit default cash position in each account)
Things should improve a lot when the virus trends turn for the better and the major governments provide fiscal stimulus that helps keep business activity going. But I don't know when it will come together, and I want to have safer positioning for the conservative parts of our portfolios.
Meanwhile, here is the Daily Comment from Confluence Investment Management. Bill O'Grady provides his usual fact-based insights.
Please contact me if you want to discuss any investment or financial planning issues. Phone calls and e-mails welcome, but no in-person meetings right now.
Thank you!
--Gary Partoyan
(703) 746-8195 w
Garo.Partoyan@PotomacWealthStrategies.com
| PIMCO Commodity Real Ret Strat A | PCRAX | US Fund Commodities Broad Basket |
| Fidelity Advisor® High Income Advtg A | FAHDX | US Fund High Yield Bond |
| Lord Abbett High Yield A | LHYAX | US Fund High Yield Bond |
| BlackRock High Yield Bond Svc | BHYSX | US Fund High Yield Bond |
| Janus Henderson High-Yield T | JAHYX | US Fund High Yield Bond |
| iShares JP Morgan USD Em Mkts Bd ETF | EMB | US Fund Emerging Markets Bond |
| SPDR® Blmbg Barclays High Yield Bd ETF | JNK | US Fund High Yield Bond |
| PIMCO All Asset A | PASAX | US Fund Tactical Allocation |
| PGIM High Yield Z | PHYZX | US Fund High Yield Bond |
| iShares iBoxx $ Invmt Grade Corp Bd ETF | LQD | US Fund Corporate Bond |
| Western Asset Core Plus Bond FI | WACIX | US Fund Intermediate Core-Plus Bond |
| American Funds Tax-Exempt Bond F1 | AFTFX | US Fund Muni National Interm |
| Schwab Tax-Free Bond | SWNTX | US Fund Muni National Interm |
| PIMCO Long Duration Total Return A | PLRAX | US Fund Long-Term Bond |
| PGIM Short-Term Corporate Bond Z | PIFZX | US Fund Short-Term Bond |
| iShares Short-Term Corporate Bond ETF | IGSB | US Fund Short-Term Bond |
| American Funds LtdTerm TxEx Bd F1 | LTXFX | US Fund Muni National Short |
| PIMCO International Bond (USD-Hdg) A | PFOAX | US Fund World Bond-USD Hedged |
| Janus Henderson Flexible Bond T | JAFIX | US Fund Intermediate Core-Plus Bond |
| Templeton Global Total Return A | TGTRX | US Fund Nontraditional Bond |
| Loomis Sayles Core Plus Bond A | NEFRX | US Fund Intermediate Core-Plus Bond |
| PIMCO Real Return A | PRTNX | US Fund Inflation-Protected Bond |
| Janus Henderson Short-Term Bond T | JASBX | US Fund Short-Term Bond |