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andiron

05/20/09 6:23 PM

#147506 RE: JohnVP #147502

i invested in vanguard bond fund in first wk of april and they are up ~10%..I am bailing out on long term bonds & corporate bonds now..only have intermediate term bond w/5% yield.

If stocks take another leg down, corporates spread will widen again
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omandan

05/20/09 7:20 PM

#147508 RE: JohnVP #147502

John
The answer is YES, your OK, they can move like that. Actually I would say you were a little late in making the move, but thats OK, your in a good position right now. BUT, you need to study up on this & learn when is the time to switch back into stocks OR at least a 50/50 deal.
Dan
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ajtj99

05/20/09 9:48 PM

#147516 RE: JohnVP #147502

JohnVP, I think you have to look at the fund and see what's in it. It sounds like it's got a bunch of corporate bonds. If so, spreads ought to be widening if we're correcting down, which would not be good for the fund. Check the content.