Is a high yield bond fund risky? I know they typically invest in lower rated bonds, but being a diversified fund I would think things "average out" in the end and it ends up being a profitable instrument. Similar to how a casino may take some up front losses but they win in the long run.
I am reallocating money and I'm thinking of going with 20% in bonds of some sort (the other 80% in a combination of a TMIF or S&P and maybe BRK-B).
This is money I have laying around losing to inflation because I'm too scared to do anything with it lol. My goals are mid-long term. If my investments are down I'll just wait it out a few years.
For example: VBMFX vs VWEHX
Don't bond funds pay regular coupon payments? Is it true that the "thing" to look for isn't really the bond fund price since that's not where they make their money, i.e. unlike a stock it's not about buy low sell high (it helps) since you have to factor in the coupon payments. VWEHX for example looks flat in the long run but if you factor in the coupon payments you made money. Whats the best way to look at bond funds.
Submitted February 19, 2017 at 02:17PM by Bonker823 http://ift.tt/2kNoefl
