So you decided Treasurys aren't safe due to low yields and dollar concerns; now what? Some money...


So you decided Treasurys aren't safe due to low yields and dollar concerns; now what? Some money managers are increasing their international bond exposure. ETFs to consider include CEW, EMLC, WIP and ITIP.

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Comments (5)
  • Rob Viglione
    , contributor
    Comments (331) | Send Message
     
    Moderation is the watchword, but there's certainly mounting risk to treasuries. Diversifying out and, and should, be a moderate process, not one in which you run for the exits only to find you've actually increased portfolio risk.
    16 Jul 2011, 02:31 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
     
    I have cut my US Treasury exposure in two steps within the last 6 weeks. Now it is barely a third of what I previously held. The other worry that the article misses a bit is the risk of Money Market funds dropping, so for the accounts I have set-up, it is tough to go to just cash positions.

     

    Over the long (very long) term, some emerging markets should continue to perform well, though not without some pull-backs. The other realm in which I have looked is sectors that are currently still down, and not yet recovered. It may take four to six quarters to see much improvement. Definitely important to be patient in times like these.
    16 Jul 2011, 03:04 PM Reply Like
  • ParkerStorm
    , contributor
    Comments (754) | Send Message
     
    Most recently Bill Gross at Pimco made headlines when he started dumping US Treasuries. Now we hear that he has increased his position a little. In watching his interviews I do not get the feeling that he is really excited about this action. Why just after selling would he start to make repurchases? On Friday 7/15 S&P down graded every US government agencies that holds US Treasuries. This went by will little fanfare as it came late. If you check out the big funds that hold a lot of Treasuries like the TCW (TGMNX) on MSN money under holdings you will see that they are dumping Treasuries as quickly as possible. We all are living in a very interesting time and money is to be made as long as you do not get caught up in the hype and the TV talking heads. The TV heads (CNBC) really helped put us into the "Great Recession" with panic selling. This will pass but the big problem will hit us sometime in 2013 as this national dept is now out of control. Treasuries were our safety net but no longer. We still have good companies and good preferred stocks working to choose from. I certainly hope not as it would bring on hard times for millions but we could be on the brink of the greatest buying opportunity in history sometime between now and mid 2013. Cash is king and patience is a virtue. Good Luck!
    16 Jul 2011, 03:56 PM Reply Like
  • nobby73
    , contributor
    Comments (1176) | Send Message
     
    Gold, silver, T-bills, Norwegian government bonds, some Canadian Bills. Decent dividend paying stocks with a good split between developed and emerging markets (pharma, mobile telcos, tobacco) are worth sticking with unless you're 20x leveraged and can't take a bit of volatility.
    17 Jul 2011, 08:09 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    A mixture of AAPL, GOOG, Gold, DE, PM, PG, POT, MA/V, WMT, XOM, EEM should be ok.
    17 Jul 2011, 09:09 AM Reply Like
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