Fundamental Analysis » Bookkeeping: New Position in PIMCO Strategic Global Government Fund (RCS)

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Bookkeeping: New Position in PIMCO Strategic Global Government Fund (RCS)

Continuining my path to full fledged fuddy duddy, I’ve been looking at bonds for return for the first time in my life. In normal bear markets bonds have held up reasonably well but in “this mess” bonds have been demolished along with stocks. All asset classes short of US Treasuries have been decimated. This led me to thinking about buying a high quality US Corporate bond ETF/closed end fund. You can get a lot more yield with “junk bonds” but at this stage of the economic cycle, with what I believe will be an ugly recession still ahead I don’t want to take that risk now since I can see quite a few companies going out of business in the next 18-24 months. Perhaps a year from now a junk bond would make more sense as the reality of the coming situation is further priced into the market….
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