Bond investing in challenging times: Bonds and your portfolio

In this excerpt from a live webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Fixed Income Group discuss the role of bonds in your portfolio. Notes: • All investments are subject to risk. Investments in bonds and bond funds are subject to interest rate, credit, and inflation risk. • Although the income from a municipal bond fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. • Diversification does not protect against a loss in a declining market or ensure a profit. • Past performance is not a guarantee of future results. • The information provided here is for educational purposes only and isn't intended to be construed as legal or tax advice. We recommend that you consult a tax or financial advisor about your individual situation. • Vanguard Marketing Corporation, Distributor.

Comments

1. I have a 401 K plan, it is doing great now but I fear that my portfolio could start losing money because of Trump and the uncertainty of his politics.  Currently my 401K has three options for Bonds...
   
   They are:
   
   1. Blackrock US Debt Index   ( I have 0 invested here)
   
   2, Pimco Total Return Admin.  (I have 10% here)
   
   3. JP Morgan Div Real Return ( I have 3% here)
   
   The rest is divided up in stocks.  I have a 2020 fund where I have like 30% there because it is when I plan to retire.
   
   Now, I am thinking of taking everything out of stocks and putting 33% in the three bond options...what do you think?
   
   Today the market is down 100....tomorrow???
2. Colleen Jaconetti is gorgeous!!!!
3. 2.9% is the worst loss in bonds, but what they are not telling you is how much you are really losing to inflation.  Warren Buffett is calling bonds a dangerous investment and is telling all of us average guys to just put everything in the Vanguard 500 Index Fund.  Jack Bogle has always told us to use age in bonds as a rule of thumb.  I have been investing for 20 years and these sure are challenging times.  I still hold bonds because when equities go down, they can go down 50%.  I'm not prepared to see my 401K lose that much.
4. Vanguard is the real deal and their advice is solid.