Comments on: Sold PIMCO Foreign Bond Fund http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html like a friend telling you about money ... Fri, 19 Mar 2010 16:33:24 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Braveheart http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html/comment-page-1#comment-2781 Braveheart Sun, 11 Oct 2009 04:53:38 +0000 http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html#comment-2781 There are several reason to invest in a foreign/int'l bond fund. First, you should clarify this statement: "A foreign bond fund protects against a weakening dollar." Some foreign/int'l bond are partially or fully hedged either directly or indirectly (emerging market debt is often US dollar denominated). Choosing an international bond fund as dollar hedge is like using a wrench to hammer a nail in the wall. Sure, it will get the job done, but it's not the most effective tool in the box. Personally, I like global bond funds for their flexibility and effectiveness in delivering total return. Loomis Sayles Global Bond Fund has been a long-term cornerstone in my 401k. They have one of the best fixed income research teams and they produce informative market and portfolio reports on a consistent basis. There are several reason to invest in a foreign/int’l bond fund. First, you should clarify this statement: “A foreign bond fund protects against a weakening dollar.” Some foreign/int’l bond are partially or fully hedged either directly or indirectly (emerging market debt is often US dollar denominated). Choosing an international bond fund as dollar hedge is like using a wrench to hammer a nail in the wall. Sure, it will get the job done, but it’s not the most effective tool in the box. Personally, I like global bond funds for their flexibility and effectiveness in delivering total return. Loomis Sayles Global Bond Fund has been a long-term cornerstone in my 401k. They have one of the best fixed income research teams and they produce informative market and portfolio reports on a consistent basis.

]]> By: Retirement Savior http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html/comment-page-1#comment-2738 Retirement Savior Sat, 26 Sep 2009 15:16:59 +0000 http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html#comment-2738 BWX is quite a good ETF, and it is transparent, too. The dollar will move towards 0 over time, as will all fiat currencies. Actually, the dollar is down ~94% since the 1920's. It doesn't decline automatically because it is a traded asset, depending on the action of millions of people, just like stocks. The dollar benefited in 2008 b/c it is a flight to quality reserve currency, but otherwise it is good to look at currencies like businesses. Debtor countries with a rapidly increasing money supply (the US) are not great currencies to have. Creditor countries backed by resource production, stable governments and a conservative financial system make for good currencies (like Norway). BWX is quite a good ETF, and it is transparent, too. The dollar will move towards 0 over time, as will all fiat currencies. Actually, the dollar is down ~94% since the 1920’s. It doesn’t decline automatically because it is a traded asset, depending on the action of millions of people, just like stocks.

The dollar benefited in 2008 b/c it is a flight to quality reserve currency, but otherwise it is good to look at currencies like businesses. Debtor countries with a rapidly increasing money supply (the US) are not great currencies to have. Creditor countries backed by resource production, stable governments and a conservative financial system make for good currencies (like Norway).

]]> By: simplesimon http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html/comment-page-1#comment-2736 simplesimon Fri, 25 Sep 2009 14:18:54 +0000 http://thefinancebuff.com/2009/09/sold-pimco-foreign-bond-fund.html#comment-2736 I thought currency fluctuations were a wash in the long run. I thought currency fluctuations were a wash in the long run.

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