Larry Berman CFA, CMT, CTA BMO Mid Federal Bond Index ZFM-T BUY ON WEAKNESS May 15, 2023

You want to have a neutral portfolio for May and June, which is the most seasonally negative of the year. May to October is the period of strength for bonds (where you go when you sell in May and go Away). Hold through to October.

(A Top Pick May 9/13. Down 5.16%.) Bonds didn’t do well. The taper talks and higher interest rates killed the bond trade. Bonds usually do well from May through until October.

Medium term (under 10 years) bond that is a safe/defensive name.
Will perform well during the summer months.
Expecting capital gains on the stock for investors.
Current yield at ~2.25% (expecting to rise).

Rising interest rates tough on bond funds.
Expectation is for rate cuts in 2024.
Wait for rate cuts before investing. 
Good for defensive investors.