Battle of the Bonds

Shorter term bonds:



Notice the parabolic move out of a multi-year base. I believe this to be very significant.

Twenty-Year bonds:



Less parabolic in nature, but still pretty impressive. Yields are dropping.


This is my struggle. I'm trying to put together an income portfolio, with very little "trading". So far we're about 50% allocated with SHY, AGG, LQD (corporate bonds), and ACG (AllianceBernstein income fund). But I hate, hate, seeing these times where bonds go down because it drives the portfolio down in value, hopefully a termporary event.

Areas that I'm giving serious thought to: Royalty trusts such as HTE and SJT, more Alliance Bernstein income funds, and maybe a dab of municipal bonds, although for now I think municipal and high yield or too coorelated with this market.