Changes to your Bond Portfolio
  • Most folks have a bond portfolio as part of diversification away from stocks.
    1) How has your Bond portfolio done so far and what is your bond fund currently made up of (Eg FDIC insured CDs, BND, Individual Muni bonds, cash etc)?
    2) What changes do you plan on making to your Bond portfolio going forward
  • I loaded up on IEF recently and will sell the entire position once the 10 year treasury yield gets back to 2% or below. I may sell half soon as we've already moved down from 2.29% down to 2.12% to lock in profit.

    I wouldn't hold any bonds below 2% yield. Rather just have cash.
  • I have been divesting bond positions since ZIRP. My positions have always involved Intermediate-Term bond funds, mainly GNMA. They have been good to me for decades, but when that inflection point hits (next month, next year?) it is going to be brutal. I've seen that movie before, it is a real tearjerker!:-) My substitute is CDs, from 1 yr through 10 yrs; they are FDIC insured, and aggregated through a fee-free brokerage service at my fund family.

    If/when rates normalize, then stabilize (in that order), I will be interested in bonds again. Until then, they will be just a fond memory.
  • Yep. Sold my Bond funds and am laddering CDs so cash is available when needed without paying a penalty. Although CDs don't have a great return it is one of the few choices available :(
  • I'm keeping my allocation of 30% bonds (BND) but I'm expecting to have to rebakance at some point :)
  • I've been heavy into bonds and did some rebalancing today and got into stocks with the huge drop off.

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