Brooke ThackrayiShares Barclays 7-10 Year Trasry Bnd FdIEFPAST TOP PICKJul 12, 2013
(A Top Pick May 1/13. Down 6.22%.) Bonds tend to do well from May into October when the money comes out of the stock market and tends to go into the bond market. But this year was a little bit different. Bonds got hammered. Probably a bit oversold. Sold his holdings at about $105 in May which was its support point. He might go back into this in August and September, which is the sweet spot for fixed income.
(A Top Pick May 05/21, Up 1%) This isn't the time for US government bonds. The better opportunity has been in the stock market. Take a look again in May to help build a more defensive portfolio to help protect against volatility in the summer.
This is not a long-term call, but one for the next 4-5 months. Strong seasonality right now, and rates have pulled back a bit. Bond allocation in a portfolio still makes sense. Yield is 0.89%.
(A Top Pick Aug 05/20, Down 5%) Bonds typically do well from May into October. We are outside the bond seasonal period right now and they have been getting hammered. We may see some reversal at some point but he would wait until May to acquire this one.
A good hiding spot. Seasonally, this is where bonds do well until the beginning of October. Then, there will be better opportunities in the equities market. Bond investors are a lot more cautious than stock investors, so they're not buying into the market recovery. Bond yields may decrease even more. Yield is 1.42%.
7 to 10 year treasury bond divergence. We will likely see a little rotation into this ETF. There is a triangular pattern where you have to watch and see which way it is going to break out of it. Short term equities are a little over bought and he thinks we will chop around for a couple of weeks.
(A Top Pick May 14/14. Up 2.95%.) Bonds tend to do well from May into October. This is still in an uptrend and, from a seasonal basis, can perform well until the end of the year.
US Treasury. US and Canada are not raising rates. It has a base and we are going to have another run. He is not buying it for the yield but for the growth.
Seasonally from May 6 to October 3 is significant. This has produced 14.8% returns from 1999 and has been up 77% of the time. This is when bonds do well. Looking to get into this position shortly.
Fixed income Bonds do well from May to October. This is a bit of a hedge. It won’t make a huge return but it is a bit of a hedge. In October you will want to be long in corporate bonds but look at the technicals at that time.
(A Top Pick May 1/13. Down 6.22%.) Bonds tend to do well from May into October when the money comes out of the stock market and tends to go into the bond market. But this year was a little bit different. Bonds got hammered. Probably a bit oversold. Sold his holdings at about $105 in May which was its support point. He might go back into this in August and September, which is the sweet spot for fixed income.