Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Vanguard: Bonds Still Better Than Cash Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, July 31, 2013

Vanguard: Bonds Still Better Than Cash

News summary by MFWire's editors

Rising rates often tempt investors to move their move their money to cash, as in money market funds. Many investors have been yielding to this temptation in the current environment.

InvestmentNews' Jason Kephart interviews Chris Phillips, a senior investment analyst at Vanguard [profile], on why investors should stick it out with bonds, even if that means taking some tough medicine now.

When Vanguard's analysts looked at a worst-case scenario investment grade bonds after rates rose 300 basis points the portfolio would lose around 13 percent, Kephart reports.

Investors should aim for the kind of yield they would get with bonds, Phillips tells Kephart and with money market funds, it's hard for investors to pick a time to get back into the market.

Phillips tells Kephart that advisers would have to time interest rates "better than anyone else out there."

Phillips tells Kephart, "If you're reinvesting dividends you can be black in a fairly reasonable amount of time."

However, he didn't outline what a "reasonable amount of time" meant.

To read more, click here.  

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use