Bonds — Ginne Mae?
Hi Terry…when talking “Bonds and Bond Funds”. …does that include GNMA also? Thanks for all you do.
Terry Says
Sort of. Check the price of your fund. Bet you’ve already lost 10+%. These securities have sold off as people refi their old high rate mortgages. Then the fund must reinvest at a lower return, making the fund less attractive.
And if rates go up on longer term fears of inflation because of current money printing, people will stay with their low rate mortgages. You’ll wish you had waited to get a higher yield Ginne Mae. Some people will sell, pushing prices down.
