Bob has told callers who are worried about net asset value (NAV) fluctuations leading to potential losses to either use a stop loss at a price they don't want to lose any more money or to put the funds in FDIC insured CDs.
This chart shows how the fund has performed on a NAV basis since January 1, 2012.
Bob Brinker's Favorite Bond fund is down fairly significantly this year. I wonder how many expected VFIIX to fall so suddenly?
According to Vanguard, the "income return" from the fund last year was only 2.7%
|VFIIX with price adjusted for dividends showing a loss since 1/1/2012|
Does these charts erase any doubts about Brinker's ability to time either the stock or bond markets?
FWIW, I got out of Vanguard's GNMA fund some time ago and have my core and explore fixed income funds mostly in a savings account earning 0.85%. It was not flashy, but making over 1% since 2011 sure beats losing money for a "safe" investment. I tell my subscribers that I prefered to take my risks in my explore portfolio with equities plus I have TIPS and I-Bonds bought as new issues from the US Treasury so they, unlike bond funds, never lose money. For more info, see: