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Joe Stocks

12/26/02 10:24 AM

#58828 RE: molly #58824

Bonds- I wouldn't buy a bond fund here. Buy the bonds individually outside a fund IMO. Treasuries would be my choice for safety.

Joe

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Ace Hanlon

12/26/02 10:39 AM

#58851 RE: molly #58824

I would stay away from treasuries and especially mortgages. Mortgage securities will be the next big bubble to pop IMHO. I have some money in 2 SHORT-TERM corporate bond funds -- STHBX and VFSUX. Most of the bad news is out for corporates and the spreads verus treasuries are very wide.

But my 401k fixed income is NOT a bond fund. No risk to participants. Like a money fund paying a guaranteed rate of 5% for the year.