bond related Alan
arpine
after one.. your rationale stems from aiming at the value factor of the bond
and not the income factor.. then i am assuming that you would also get in
before rate decreases and get out after rate decreases.. ok.. my problem
is - why do you not take into consideration the income factor of the
equation?
Bernard Thomas
What post are you responding to? I'd like to read it but I can't find it.
arpine
post of mine.. let's see perhaps Alan will remember it?
"Bernard Thomas" <bsth...@ix.netcom.com> wrote in message
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Alan Spross
high yield market, and to which Bernard added some good thoughts about
Treasuries to which I concur.
Last year taught us that not all aspects of the bond market react in
lock step. My thinking about the relative entry and departure points for
high yield funds do include consideration for the income as well as NAV
change in these funds, and I agree that the total return factor is what
counts. That said, I think we are near a bottom (and in fact have
rallied about 2% in last 4 weeks) for the high yield funds, whereas i
agree with Bernard that the treasury segments have been strong all year
with reducing supply and flight to quality concerns, and there may be
very little price appreciation left there to go with the declining
yields we will see as AG eases. As such 1-2 year CDs may look good to
lock in current yields, but those as well as the MM yields will be
dropping fast now. I expect MM yields started dropping @ 6 or 7 basis
points per week with the easing of 1/3/01.
Alan Spross
"arpine" <arp...@earthlink.net> wrote in message
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arpine
"Alan Spross" <spr...@lankaster.com> wrote in message
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