<BreadWithSpam[at]fractious.net> wrote in message
news:yob7i12p2if.fsf[at]panix1.panix.com...
- quote -

Back in 2006, I was holding both Vanguard VFIIX (GNMA)
and the LT Corp fund - VWESX.
Didn't feel comfortable at the time, with the housing mess on the horizon.
Sold them both - and put some into the index VBMFX,
not sure where the rest went

Looking back -
wonder if I should have kept GNMA vs going to the bond index ?
(selling the LT corp was probably a good move)
http://finance.yahoo.com/q/bc?s=VFII...sx,vbmfx,fgovx

What about now and FGOVX -
invest a portion in full treasuries,
or it's a safety bubble ready to pop,
as folks trickle back to equities ?

"ps56k" <pschuman_no_spam_me[at]interserv.com> writes:

- quote -

Look at the assets inside the funds. We often talk here
of asset allocation and asset classes and just treat "bond"
or "fixed-income" as a thing unto itself. It's more
complicated than that.

Last year, US Treasury bonds rallied as everyone sold
everything else in the universe and bought them. In the
process the sold off not just stocks but also other kinds
of fixed-income securities - especially corporates.

VBMFX has a substantial portion invested in corporates and
a smaller allocation to treasuries and agencies than does
FGOVX. That's the main difference. FGOVX has no corporates
at all. They are both in the highest grade securities, have
average maturities on the order of 5 or so years (one just
above that, one just below).



--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

"ps56k" <pschuman_no_spam_me[at]interserv.com> wrote in message
news:0viKl.15666$%54.15239[at]nlpi070.nbdc.sbc.com...
- quote -

Likely flight to quality. Look at how low Treasury yields have sunk (and
Treasury prices have risen). FGOVX isn't necessarily a Treasury fund, but
it still holds government issues that may have categorically risen in price
along with Treasuries. I haven't checked the data to confirm, though.

Mark Freeland
nNeEwTs[at]nyc.rr.com

I've been reading the threads about bond funds,
and currently am holding VBMFX in my portfolio.

What about FGOVX -
http://finance.yahoo.com/q/bc?t=5y&s...=m&q=l&c=vbmfx

Why the divergence over the past year ?

I've created some CD ladders,
and was looking at other fixed income backstops
to keep my hands from tinkering with the money....


--
-- "If everything seems to be going well,
you have obviously overlooked something." - Steven Wright