Probably not but look at that chart. Hey now!
I am not too worried at this point about the duration and magnitude of the decline. Client accounts have had a very good month (I realize it is stupid to think about one month but this is a worthwhile point) due mainly to the simple top down decision to overweight foreign.
This type of decision does not require keen insight, just a basic understanding about diversification. It is these types of portfolio moves where a lot of your return gets determined.
There are plenty of investment choices that that give broad or narrow foreign exposure without having to ever worry about single stock selection or risk, for people that do not want individual stocks.
I write about this a lot because I believe it is important and will become increasingly more important in the coming years.
6 comments:
What do you think about this type of investment? GIF - Global Income Fund. 7.1% current yield. Portfolio of fixed income securities - US, W. Europe, Latin America, the Pacific Rim, South Africa, and Canada. 65% investment grade. I found this on today's list of 52 wk. new lows for the AMEX, and thought it might be a good choice when global interest rates stabilize a bit.
I don't know the fund. First impressions though would cause me to wonder why the NAV is down so much. fifty cents is a lot based on the price of the fund. That it is down so much makes me wonder how well they use leverage. They reduced the dividend by a penny per month starting at about the time that the fed started raising rates which makes me wonder if they got caught wrong footed which would seem impossible to have not seen coming.
Maybe look at GIM, AWF, or something like FXE...
Petronius, if you compare GIF to some other global fixed income securities, I think you will find better choices. For example, go to etfconnect.com and compare the performance history of GIF to GHI. You will see that GHI has outperfromed GIF every year for the past 10 years, and often by quite a large margin. And GHI has a current yield of 8.79%. MSD, which I personally own, is another one to check out. It recently had a 12% drop and seems like a good entry right now.
The end is near.
i have been clear about what client accounts look like and ny general opinions but David I hope you're wrong.
insert nervous smile
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