Broker Check

Bond Funds to Sell; Confluence's Daily Comment on Markets and Virus

| March 23, 2020

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:

  1. SHY--iShares 1-3 Year Treasury Bond ETF (short-term bonds)
  2. SWVXX--Schwab Value Advantage (money market fund)
  3. 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

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