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? 

•  More about  the Vanguard GNMA fund (VFIIX)

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More information:

• Kirk's Two Investment Letters - Best Retirement Portfolio For You
• Retirement Advisor Performance by Year

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

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Bob Brinker, Jim Cramer & John Bogle: Trending Financial Advisors

Interest, on a relative basis, in Bob Brinker has steadily fallen over the past decade. It is interesting to compare interest in Brinker to others like Jim Cramer and John Bogle.

Bob Brinker

• 2004:  Interest level was 100
• 2014: Relative interest level is 9, down 91% in a decade. 

Jim Cramer   

• 2004:  Interest level was 4
• 2014: Relative interest level is 8, up 100% in a decade but down 92% since peaking in 2009
• Jim Cramer's "Action Alerts Plus" Charitable Trust Portfolio Performance  

Interest in Brinker and Cramer has fallen as I believe people realize they make more noise tooting their horns than actually helping people make money.

While interest in both Brinker and Cramer has fallen, Cramer received far more overall interest on Google over the last decade:

Jim Cramer's "Action Alerts Plus" Charitable Trust Portfolio Performance  

This shows interest in John "Jack" Bogle, founder of Vanguard group which I use to construct my core newsletter (Subscribe) portfolios, is down also.

John "Jack" Bogle

• 2004:  Interest level was 100
• 2014: Relative interest level is 40, down 60% 

Mark Cuban


Mark Zuckerberg

Snapshot for Jan 2004 to Jan 2014

When I used to run the "Investing and Personal Finance" section of Suite101 back in 2000, interest by the general public in investment topics was at a peak.  I remember my one topic about Bob Brinker would get more hits in a single day than this blog gets in a whole month. 

This general lack of interest is good news for contrarians.

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