Dollar Pimp

4 Ways to Protect Your Capital (Think Debt and Bond ETFs)

I think Pimco offers an EM bond mutual fund denominated in EM currencies - Emerging Market Local Bond?


On Oct 01 10:36 PM Bob Mayo wrote:

> Ugg. PCY and EMB are in dollars. GIM and TIE are more than two thirds
> in dollars or euros. CEW is the only thing I can find denominated
> in a variety of emerging market currencies, but it is a currency
> fund not a bond fund.
>
> Templeton and Merk also have hard currency funds, but with >1% expenses.
>
>
> Anybody have suggestions for emerging market bond funds in local
> currency?

4 Ways to Protect Your Capital (Think Debt and Bond ETFs)

It's true you need to be careful with emerging market bond funds since most EM bonds are denominated in dollars. Sometimes it takes a bit of digging to find out exactly what your currency exposure is. For instance GIM, which is also mentioned here, is about 40% exposed to the dollar, which makes it more dollar neutral than a bearish dollar play. I like the FEO closed end fund; it's 50% exposed to the dollar (again dollar neutral) and invests in both EM bonds and stocks.


On Oct 01 03:56 PM market mojo wrote:

> Regarding PCY. Here is part of its profile from Yahoo.
>
> "The fund normally invests at least 80% of total assets in emerging
> markets U.S. dollar-denominated government bonds."
>
> Doesn't this mean that the fund is 80% dollar correlated? If so it
> doesn't seem to be a good fund for dollar diversification.

Not All Dividend Stocks Are Overvalued

You should heed the advice of ERC, "(annuities are) sold as an investment, but are really nothing but an insurance policy dressed up to look like an investment."

If the insurance company goes under, so does your investment. Think AIG. In today's environment, there's no such thing as guaranteed. Don't fool yourself.

On Sep 10 11:40 AM axelrod608 wrote:

> jarco - as I said, >>"Yes, there are many kinds of annuities, most
> of which are risky and written by non-reserve companies. Yes, you
> have to know what you're buying." >>
>
> Your url to the lawyer that's suing Allianz about DEFERRED annuities
> has nothing to do with what I said.
>
> Anybody that puts 100% of their life savings into ANY investment
> based solely on the word of a sales rep is an idiot. We all know
> that.
>
> As for Allianz' ability to make enough money to pay decent returns,
> check it out. Allianz makes Warren Buffet look like a small business
> in comparison. Buffet gets sweet deals because of the size of his
> assets. Allianz gets sweeter deals.
>
> I just don't understand why there is so much attention devoted solely
> to the stock market when there are MANY other legitimate ways to
> invest. TRUE diversification involves investing in many sectors,
> many different vehicles and products. If you have 100% of your money
> in stocks, and the bonds of the same companies, no matter how many
> different ones you have, you are NOT diversified.
>
> Finally, there are MANY kinds of annuities. Most are tailored to
> one type of investor or another. They grow, pay and save in many
> different ways. NONE of them are perfect for all situations. And
> an ignorant annuity buyer is no less at risk than an ignorant stock
> buyer.
>
> Let's be careful out there.