Bonds , Portfolio


What happened to all the buy and hold bond investors? See table below.

Fund flows aug 17 2013


The latest long term fund data from ICI shows bond investors are doing what most investors do. Flee an investment at the first signs of distress. Taxable bonds lost about 4% of assets in June and looks like they loose another 3% or so in July. Muni bond funds lost about 5.5% of assets in June and will probably top that in July.

These are not the signs of patient long term buy and hold investors practicing asset allocation. Buy and hold is a great investing strategy IF you can stick with it during good times and bad. Problem is most investors can’t.

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2 thoughts on “ What happened to all the buy & hold bond investors?

  1. So would you hold on to the Nuv that I have? I don’t need to sell, but don’t want to lose everything either.

    1. Yes, I would absolutely hold. As of the end of July NUV’s portfolio was trading at 80c on the dollar at NAV, With the current discount its even cheaper. It has almost zero leverage. And almost 40% of the bonds it holds are insured – including all its Detroit bonds. Its one of the best deals out there right now.

      Hold and reinvest the dividends. 5% tax free yield is a good deal.


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