RIP Bonds and MMF

Anyone’s income portfolio also experienced losses in recent weeks? I’ve held JPM Income portfolio for 2+ years only for it to lose money lol. PIMCO income funds also bleeding. Any advise what to do about it? Sell? Hold? Buy more?

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u/seewhyaxe 2 3 days ago

look at total return, not just capital losses
u/jeremydevdesign OP 1 3 days ago

Yep already included interest/dividends throughout the years I’ve held, total returns is negative.
u/ghostcryp 1 3 days ago

Stupid fund right it’s supposed to be an income fund end up total return. Might as well buy CSPX
u/faptor87 1 3 days ago

More like stupid investor Donno what are bonds and its risks.
u/ghostcryp 1 3 days ago

Haha yea when risk free rate is 3-5% now, binds better yield 8-10%
u/mrmrdarren 1 3 days ago

Why did you buy these in the first place? Shouldn't they have their own purpose in your overall portfolio? Anyway... relevant meme
u/Ceyenne18 1 3 days ago

My friend, there is a bigger problem which most people don't want to hear - stock rout almost always follow a bond rout.
u/mrmrdarren 1 3 days ago

Im not disagreeing with you tbh. Just disappointed that someone can buy bonds, see bonds getting "destroyed" and (essentially) panicking
u/Vast-Log5241 1 3 days ago

I do have PIMCO as part of my portfolio. Right now, I am not sure what to make of it. I am just waiting to see what happens next.
u/jeremydevdesign OP 1 3 days ago

Same here I guess
u/Ceyenne18 1 3 days ago

Just wait it out. The good thing is US government is more concerned about the problem than we are.
u/princemousey1 0 3 days ago

No choice but to sell everything now. Wait for next time then buy back.
u/[deleted] 1 3 days ago

[deleted] — already gone when the archive first saw it
u/Ceyenne18 1 3 days ago

lol ... they you better sell all your stocks because the tidal wave from the bond rout is coming :)
u/Telltslant 1 3 days ago

Have pimco as am no longer working, still intending to hold. No big deal, things happen in cycles. There are alot of misunderstandings about the purpose of bonds/bond funds in a portfolio. They aren’t meant to behave like equities and i don’t think the point is to sell as soon as NAV starts to drop due to the macro-environment.
u/Royal_Impress_3041 1 3 days ago

I reduced my target allocation.
u/Ceyenne18 1 3 days ago

Dude, all bonds are taking losses as their valuation is based on government treasuries. It is an automatic process rather than based on buyer/seller in stock market. Just enjoy the dividends and wait it out unless you need the money. When treasury yields subside as inflation/oil goes down, your NAV will be restored.
u/BuyHighSellLow_SG 1 3 days ago

It has a place in portfolio, for diversification
u/essiah74 1 3 days ago

I sold all my bond funds before 2022 and never looked back.
u/harajuku_dodge 1 3 days ago

You need to be clear why you even allocate money in them. For me it serves as a ballast and liquidity to equity drawdown and with me hoping to retire in 10-15 years, I will hold them until then (excluding any rebalancing here and there).
u/IndividualHistory968 1 3 days ago

This few years, money are moving toward AI related share, and now slowly toward energy, because AI need more energy
u/ghostcryp 1 3 days ago

Hahaha everyone kena burn by pimp co. Don’t ever buy your bankers crap as they r paid by pimp co push their unit trusts. Thats why dbs etc record high income hahah
u/duckyomega 1 3 days ago

Have lost a few thousand so far in MMFs lol, just gonna hold it and hope it goes up next time.
u/kingkongfly 1 3 days ago

It might be worthwhile for you to understand the relationship between interest rate hikes, bond prices, the current US Treasury situation, and inflation. What is the underlying cost for the recently local bank's stock crisis.
u/Material_Welder_7139 1 3 days ago

Investments always have ups and downs. If now income fund down you want to sell, later equities down sell equities? Only buy when going up? Will become classic buy high sell low. So best to have a portfolio structure that you know what to expect.
u/Great-Depth-6609 0 3 days ago

Been (bag)holding PIMCO since 2020 and it is my retirement income strategy, and thereafter to continue to pass to my children for perpetual income. As long as don't need to drawdown on capital it'll be fine.
u/faptor87 1 3 days ago

Erm, I don’t think that works. If we revert back to low/zero interest rate environment, the yield from bond fund will eventually drop as well. Bond funds don’t mature like individual bonds do.
u/Suitable_Garden_9844 1 3 days ago

Experienced similar losses, but the majority of my bond sleeve is direct US Treasuries and corporate bonds instead of bond funds. This means I can just hold and let them pull to par as they mature.