Wednesday, January 30, 2013

Approaching the Zero Bound - Bonds

As bonds approach the artificial zero bound, where do we go next especially after the record setting +30% in 2011?  The rolling 250-day total return has rarely gone negative since the inception of the Vanguard Funds VBMFX and VUSTX.  I am intentionally an ex-bond fund manager, so I am very interested.

From TimelyPortfolio
From TimelyPortfolio

R code in GIST:

1 comment:

  1. Gary Shilling, yes, that fellow who initiated a Buy on zero-coupon 30 year Treasurys in 1982, and "keep rolling them over till I tell you to stop"...he hasn't said stop fact, he's very happy buying zeros here, looking for 20+% cap gains.