If you have the ability to move your 401k or retirement savings may I suggest moving to a bond fund.

[pwb]

Get your money out of the risky high yield funds because in my opinion they will take a big hit tomorrow and in the near future. Bond funds have lower yields but are much safer in times like we have coming.
Just my two cents.

[Tunkamerica]

1. The value of free advice...

on a semi-anonymous message board.

[Yupster]

2. Of course mutual funds trade at the close of the next day's business, so

If you get out now, the trade will go through after the market closes on Monday.

I would also urge people to notr take investment or economic advice from message boards.

The people with licensed expertise are not allowed to give anonymous advice.

[Travis_0004]

3. Do you have a financal background?

Just wondering.

I'm sure you know that bond prices go down as interest rates go up. If what everybody else is saying is true, then interest rates may go up very soon. Plus, when we recover from the recession, interest rates will probably rise then as well. Short term bonds have a lower duration, so it isn't as big of a deal with short term bonds. Also, if buy a bond and plan to hold it to maturity, then duration and yield to maturity isn't a concern, since you know the details when you buy the bond. The only problem with holding a long term bond to maturity is there is some opportunity cost in the fact that you might be forced to hold onto a bond instead of selling it and taking a hit on the YTM.

I think short term bonds are fine, but long term bonds are the last place I would want to be. I know bond funds work a bit different, but I would not touch any mid or long term bond funds. I think a much better idea would be buying short term bonds and holding them to maturity.

Now, if this post was made in late 2008, when the recession was coming, I would agree with you that bonds are a great idea, since interest rates would have to come down. Put a lot of money in 30 year zero coupon bonds, and you would have been a happy investor back in 2008. Buying long term bonds now, not a great (or even good) idea.

[A HERETIC I AM]

5. Why would ANYONE buy a 30 year, zero coupon bond?

That is just about the worst type of long bond to buy. What's the point? You get no interest payments, you have to wait until maturity or selling it to realize any gains or income and you are subject to "phantom income" taxation.

So I would ask you the same question;

Do YOU have a financial background?

[OllieLotte]

11. A zero coupon bond is similar to a US Savings Bond.

If you buy a $50 US Saving Bond you don't pay $50 for it. You would pay less, depending upon the type and maturity date and rate.

[A HERETIC I AM]

12. I know what a zero coupon bond is...

and I understand how they're priced. T-bills are all zero coupon bonds.

Still, why would anyone want to buy a 30 year zero? It makes no sense from an investment standpoint, unless the yield is so outrageous as to make it irresistible. And those sorts just don't exist.

[AnnaLee]

8. I don't know what will happen by the end of the day.

But, Treasury prices were up and yields down a few minutes ago when I checked.

[bemildred]

4. You can lose a lot in bond funds, rising interest rates are far from out of the question.

And if rates go up, those bonds funds will lose a lot.

[A HERETIC I AM]

6. Unfortunately, your two cents are overpriced.

If you have the ability to move your 401k or retirement savings may I suggest moving to a bond fund.

EVERYONE in a 401(k) plan has the ability to move assets around at no cost. Depending on the particular plan, one can make as few as 6 trades or exchanges per year and some allow as many as 4 a month. Trading or exchanging funds in excess of the limits of the plan simply carry trading fees and those vary by plan and plan provider.

Get your money out of the risky high yield funds because in my opinion they will take a big hit tomorrow and in the near future.

"High Yield Funds" are basically bond funds, so you are contradicting yourself.

Bond funds have lower yields but are much safer in times like we have coming.

Bollocks. There are many, MANY different types of bond funds, from Muni's to Treasury to high yield corporate to AAA corporate to foreign bond funds. Not all bond funds are created equal and each has a specific purpose in mind and particular types of bonds the manager will purchase. Also, most 401(k) plans have a limited number of available choices, be they equity funds, money market or bond funds, so it depends on the plan as to whether or not there would be more than perhaps 3 or 4 bond funds to choose from.

Just my two cents.

You really should re-think the value here.

[pwb]

7. what about this?

Which fund has shown continuous growth over the years?.
The G fund...
Read this.

https://www.tsp.gov/investmentfunds/shareprice/sharePriceHistory.shtml

The G and F funds are government bond funds. The G fund never go down, the F fund very little compared to the more risky funds.
Am I wrong or are you?.

[Yavin4]

9. Buy Gold and Silver

and sleep tight.

[westerebus]

10. Now is not the time, unless you have no other options available.

If you were going to be in bond funds, high yield corporate or medium term international, that move would have been done already.

I don't time markets. I pick a point to take profits or sell and re-balance or look at other places that interest me.

I watch to see where trends are going. I watch main street closely. I don't play in markets I don't feel comfortable in.

At this point, if someone rode the crest of the wave, welcome to the beach. And yes that's going to leave a mark.

Sometimes a plain vanilla balanced fund makes the most sense.

How much debt you have should be a big factor too.

Being out of debt is a major return in itself.

At this point, return, yield, are by-product. Preserve your base capital. Do what you need to do.

As Heretic says: Be very careful taking financial advice from a blog.