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Why is this MF doing bad ?

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  • Why is this MF doing bad ?

    Hi,

    When I researched few months back, I saw this MF doing good
    Vanguard Long-Term Treasury Inv
    Now, it is going down crazy ? Is it time to pull out from this MF because stocks are going up which makes bonds go down ?

    Thanks

  • #2
    Why do you want to sell low? Isn't it better to buy low and sell high?

    Comment


    • #3
      If the MF is going down , what is the point of waiting to lose more money ?
      What I am not sure and that is what I am trying to understand is that if stocks go up ,does bonds automatically go down ? If that is the case then I see stock market going up bringing bonds down (probably)

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      • #4
        Interest rates go down
        bonds funds go up

        interest rates go up
        bonds go down

        long term bonds will fluctuate more than short term
        and we are in a bond bubble (rates cannot go too much lower to push prices up), so I would focus on short term bonds and liquidate any long term bond holdings immediately. Even for long term investors.

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        • #5
          So, you don't believe in investments for the long run? Sometimes they go down, sometimes they go up. Most people do everything backwards. Why does everyone want to get out when a MF goes down and get in when it goes up? I'm confused. I gaurantee that if you keep playing this games you'll never get anywhere. I don't touch my investments hardly ever. I dollar cost average my MF"s. Don't say I didn't warn you.....

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          • #6
            My first question would be, why are you investing in Treasury securities?

            #2 - How long until you need this money again?

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            • #7
              Long-Term Treasuries will do well if we have deflation. So if we have a Japan type scenario Long-Term Treasuries will be the place to be. If we have considerable inflation they will not do well. And just cause the're Treasuries doesn't mean they are "safe". This fund is almost as volatile as a stock fund. Personally I stick with shorter term bonds -less downside risk and it seems rates have no where to go but up.
              Last edited by Snodog; 11-23-2010, 08:58 AM.

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              • #8
                For a moment, I thought MF means mofo as in "Why is this mofo doing so bad?" Funny.

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