My Photo
Note: Jeff does not accept guest blog posts on A Dash of Insight.

For inquiries regarding advertising and republication, contact main@newarc.com

Follow Jeff on Twitter!

Enter your email address:

Delivered by FeedBurner

Certifications

  • Seeking Alpha
    Seeking Alpha Certified
  • AllTopSites
    Alltop, all the top stories
  • iStockAnalyst
Talk Markets
Forexpros Contributor
Disclaimer
Copyright 2005-2014
All Rights Reserved

Comments

oldprof

Jesse - The closed end fund does not really solve the problem. The pool of capital is fixed, but that does not mean that you are holding bonds to maturity as you would do with your own bond ladder. The price of the fund is going to fluctuate with interest rates, so you have no assurance of your exit value. In addition, the fund will trade at a premium or discount to the NAV, and that can also be hard to predict.

Good question -- and thanks.

Jeff

Jesse Levitt

Wondering what your thoughts were on CEF Bond Funds as a way to gain long term exposure to bonds with lower risks of the fund having to sell bonds at disadvantageous moments.

oldprof

Milk and Honey -- I have actually written quite a bit on this theme. Partly is is what NOT to do -- bond mutual funds, utility stocks, or over-valued names that are trading mostly on yield.

Some ideas of how to play rising rates are part of my 2014 preview -- http://oldprof.typepad.com/a_dash_of_insight/2014/01/2014-investment-preview.html

I hope this helps.

Jeff

Land of Milk and Honey

HI Jeff, great information!!

>>"You need to have the right mix of stocks to benefit from a rising rate environment."

Do you have a blog posting about what mix of stocks makes sense in a rising rate environment?

Also, I'm finding I'm thinking in 2-3 months the ending of ZIRP in 2015 will come into market's consciousness... and effect rate-sensitive stocks & I should wait to emphasize buying those. I feel like I'm the only one thinking about this. Am I missing something?

Dennis Nigrelli

I enjoyed perspective of Stepping in gradually. I am a new retiree and am setting a goal of 8%+ using a gradual formula.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.