Everything is Cheap Relative to Bonds – Stanley Druckenmiller…Are Individual Bonds Better than a Mutual Fund… and more!March 1st, 2013 by Simon G
Market Folly: – Everything is cheap relative to bonds according to Stanley Druckenmiller. – In a rare interview Stanley Druckenmiller says. “One of the things that is kinda one of my pet peeves is hearing all these people on TV say, ‘Well, you gotta go into equities ’cause they’re so cheap relative to bonds and there’s no other game in town.’ They are cheap relative to bonds. But everything is cheap relative to bonds…So just because equities are cheap relative to bonds doesn’t mean their price isn’t subsidized.
Point Bonita: – Are individual bonds better than a mutual fund? – You’ll hear passionate advocates of buying individual bonds instead of a bond fund in your investment accounts. There are some great advantages, but they aren’t best for everyone’s situation. This 2.5 minute video comparison might help to guide your decision.
Financial Ramblings: – Buying savings bonds with your tax refund. – Michael from Financial Ramblings shows you how to buy additional Series I Savings Bonds with your tax refund.
Learn Bonds: – Simple income strategy for non investors. – Charles Margolis shows you how to develop a simple income strategy using muni and Treasury bond funds. This is a simple strategy aimed at non investors with limited funds who currently don’t have any investment income at all.
BusinessWeek: – Bond doubts have brokers asking: Should I stay or go? – Investors, should prepare for a much steeper trade-off between risk and reward, and question whether current conventional asset allocation parameters, born out of the culture of the last 30 years, are still appropriate.
Market Oracle: – Stocks, bonds and dollar markets review. – According to our methodology, Wall Street is currently in correction mode and this is not the time to invest fresh capital in stocks.
Morningstar: – Seeking a fixed income fix. – While not without risk, corporate credit actually looks to be in fairly good shape, according to Eric Takaha who, as senior vice president and portfolio manager of Franklin Strategic Income Fund spends a good deal of time analyzing the space.
Ploutos: – Fixed income momentum – March 2013. – Ploutos shows you how to build a fixed income momentum strategy in fixed income markets. A must read for any 401k investors.
Barron’s: – Heebner bets 21% of $1.44B CGM focus fund against Treasuries. – If you’re looking to bet big against Uncle Sam – like, really big – have we got a fund for you?
ETF Trends: – PIMCO Total Return ETF trounces benchmark, mutual fund in first year. – PIMCO Total Return ETF (NYSEArca: BOND) is celebrating its first birthday with one-year returns that have crushed its benchmark and the mutual-fund version which is also managed by Bill Gross.
Invest With an Edge: – The successful failure of PIMCO total return ETF. – Today is the one-year anniversary of the launch of the PIMCO Total Return ETF (BOND). Today, BOND has $4.3 billion in assets, a one-year total return of 11.3%, and most analysts gushing over it every chance they get. In short, the PIMCO Total Return ETF (BOND) has been a raging success in all areas except one – it failed its “Prime Directive” of being the ETF version of the PIMCO Total Return Bond Fund.
CivSource: – Mayors, state official’s pushback on muni bond tax changes. – Municipal bonds allow communities to build the streets, bridges, water lines, and police and fire stations that not only serve the needs of citizens, but also create jobs and drive the economy. Small wonder then state officials are against removing tax exemption.
MarketWatch: – Fitch takes various rating actions on enhanced municipal bonds and TOBs. – Fitch Ratings has taken various conforming rating actions on enhanced municipal bonds and tender option bonds (TOBs) corresponding to actions taken on their associated enhancement providers or underlying bonds.
Cate Long: – Massachusetts creates the gold standard for municipal bond disclosure. – The Commonwealth of Massachusetts has poured a lot of effort and creativity into figuring out how to keep its bond investors up to date with financial data. Today it consolidates lots of municipal bond data in one place. It’s a muniland “one stop shop,” and I hope it inspires other states and municipalities to improve their games on disclosure.
Bloomberg: – Worst losers turn winners in Illinois repayment bet. – Illinois’s deteriorating finances are tainting debt from issuers across the fifth-biggest US state, drawing investors to the extra yield on top-rated Chicago revenue bonds and borrowings of local school districts.
Alliance Bernstein: – Is it time to get back into stocks—or too late? – After five years of fleeing stocks for the perceived safety of bonds, US mutual fund investors became net buyers of stock funds in January. While some see the return of the retail investor as a negative indicator for stocks, we say, “Better late than never.”
Mike the PhD: – Municipal Bonds: A great way to make tax-free money. – Municipal bonds represent a huge asset class (~$3.5 trillion in outstanding bonds) that gets relatively little attention in the financial press, so I thought it was worth go into an overview of this area.
Gross: Be leery of horsemeat & currency mispricings. Yen, Pound & Euro reflect weak economies. Underweight them. Buy Mex peso, Brazil real.
— PIMCO (@PIMCO) March 1, 2013
— Bob Brinker (@BobBrinker) March 1, 2013
RBS: Weekly momentum for 10yr UST looking to “officially” turn bullish for first time since early december..we target 1.70% for 10yr UST
— David Schawel (@DavidSchawel) March 1, 2013