Search Bob Brinker Fan Club Blogs

Monday, March 17, 2014

Bob Brinker GNMA Advice

Moneytalk with Bob Brinker Commentary for March 17, 2014 Radio Show

The following commentary is from my "Retirement Advisor" writing partner,  David Korn

Caller: This caller heard Bob saying recently that he thought GNMA’s would take a hit and that he was no longer recommending them.  The caller said she still owns a large position in GNMAs and wanted to know what Bob would do.  

Bob said his recommendation against owning the GNMA fund is based on a risk/reward decision over a long period of time.  Bob said he is recommending shorter duration fixed income securities as part of an overall diversified bond portfolio.  Bob said the average duration he is recommending is about 1 year.  The GNMA fund duration is typically several years.  Bob said he thinks we will eventually see a normalization of interest rates and when that happens you will see the net asset value of the GNMA degrade and given what they are paying it is not worth the risk.


David Korn: The Vanguard GNMA fund (VFIIX) that Bob recommended for so many years is actually up 2.48% year-to-date, not too shabby at all. It has a current yield of 2.80% and its shares closed Friday at $10.62.
See my article:
Monday, July 15, 2013: Bob Brinker Fan Club:
Sell GNMA to Buy Fidelity Floating Rate Income Fund, Good or Bad Advice? 




FREE==> SAMPLE Issue  <== FREE

More information:

The above commentary is courtesy of my writing partner, David Korn
David Korn's Stock Market Commentary, Interpretation of Moneytalk (Bob Brinker Host), Financial Education, Helpful Links, Guest Editorials, and Special Alert E-Mail Service.  Copyright David Korn, L.L.C. 2012
 If you would like a free sample of David's complete "Brinker related newsletter" and his "Retirement Advisor" newsletter, then click this link to send an email request and please tell us a bit about yourself too.

No comments:

Post a Comment

FREE Updates Mailing List


We email regular "FREE Bob Brinker Fan Club Updates" to everyone on our "Bob Brinker Fan Club" distribution list. If you would like to get on this list, then click this link.


Top Rated Newsletter


Timer Digest Features
Kirk Lindstrom's Investment Letter
on its Cover

Cick to read the full page article!






US Treasury Rates at a Glance - iBond Rates - LIBOR Rates

Must Read:
Beware of Annuities - Payday Loans Warning