Replies to post #33502 on Zeev's Turnips Patch-No Politics (ZEEV)

[TBLebowsky]

Bond funds will move primarily in relation to expectations for interest rates ... based on the evidence I have seen, the correlation to the stock market is not that great.

If you are going to own a bond fund, a short-term fund presents the least risk (with respect to loss of principal), with a corresponding low return, as compared to an intermediate or long-term fund.

[Captain_Jack]

warawls-- bond funds do not ALWAYS perform as expected. I hold several including 2 ST funds. The ST will not pay well but after news bumped spikes will move little. I'd check the share price to NAV ratio and see if it is only moving back to a traditional range. I have sold LT bond funds and have been lightly selling LT corps as the cap gains make 'em look like a tech stock of '98. Mid-T fund has been sold. The ST funds held have dropped slightly but I still have no intention of selling them in the near future. If you are not comfy,, it is time to unload them. If you are planning on keeping your allocations close to current levels it may be difficult to find anything to move into.

[jglider]

LTDFX from its appearance is what many would call a junk bond or high yield fund, these tend to track the general market but also pay a good dividend.

JMO but some of the holdings are what I find in other junk bond funds.