VFIIX - Vanguard's GNMA Fund

Vanguard's GNMA Fund with ticker VFIIX (Charts and current quote) is Bob Brinker's favorite bond fund to talk about on his show "Money talk with Bob Brinker."  Brinker recommends VFIIX on the radio and in his "Marketimer" newsletter portfolios that are not 100% in equities.

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%

This means the fund has lost money for anyone who held it as of December 31, 2011 or later. Here is a chart showing the fund adjusted for dividends.

VFIIX with price adjusted for dividends showing a loss since 1/1/2012

Note how VFIIX was a money maker for anyone who "sold in May" at the very top on a basis adjusted for dividends.  Like fame, that was fleeting...

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:

• CurrentSeries I Bond Rates
• BestSavings Account Rate Survey 
• VeryBest CD Rates with FDIC

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Bob Brinker the Informercial Salesman

"The Ayes Have it!"

I listened for maybe 30 minutes total yesterday to "Moneytalk with Bob Brinker."

I had to laugh so hard...

I heard Bob Brinker plug his newsletter on his website.

I also heard him tell a caller asking his opinion on where the market was headed say he writes that in his newsletter as he refused to answer.

Who would pay for that if they knew he's been fully invested since March 2003 AND he was so bullish at the top in 2007 that he had a gift horse buying opportunity in the 1500s just before the market collapsed to 666!

I heard him plug "Moneytalk on Demand" that is quite expensive compared to iTunes or getting the show for free on the internet.

I heard him LIE to a caller by saying he was not a salesman!

I guess he thinks what remains of his audience is too stupid to notice he's turned his show into an informercial for over priced products, especially when compared to the competition.