International Bond Index Fund
Hi Terry,
I have a 60/40 (stocks/bonds) allocation in my IRA. My question is about my bond funds:
-Short term investment grade
-Intermediate Term Investment grade
-Total Bond Market
-International Bond Index
I have read pros and cons of holding an international bond fund. What are your thoughts? Is it good for diversification or does it not make a difference?
Thank you,
Terry Says
International government bonds are now paying mostly NEGATIVE interest rates. That is, people are paying their governments to hold their money because they are so scared! Any international bond that yields more than zero has a huge implied risk.
And search my columns — I have written “beware of bonds” columns several times. You will understand both the market risk, the credit risk and the hidden risk in bonds.
