Summary
- In my July 2020 article on this site, I urged investors to shun money market funds in favor of bonds for the portion of their portfolios not invested in stocks.
- Over 11 months later, cash has returned close to nothing while bond funds I recommended have returned 3.69%, not annualized.
- With the Fed on hold, interest rates are unlikely to go up in the near future meaning that bond funds can return at least their dividends, if not more.
- Finally, I discuss different categories of bond funds and my estimation of their future prospects.
Seeking Alpha
Jun. 12, 2021