Bond Market Losses and Where to Go From Here

As I write this morning, the media is full of news of the worst quarterly bond market losses since the collapse of Lehman Brothers in 2008. This is causing a major flight from the bond market as investors fear that interest rates are going to continue to crush bond performance. But where do you go from here? Bob_W

 

One option, which we prefer here at Wamhoff, is to go back to the stock market. Right now, we’re looking to dividend paying U.S. stocks. Was June a banner month in the market? No, but we knew that going into it. As I mentioned in my commentary last month, June is ranked 10th out of the 12 months for total return performance, and the poorest two performing months, August and September, are just around the corner. But we don’t look at it month by month, as we know that by staying diversified and continuing to rebalance, we can stay ahead of the game.

 

In addition, we’re seeing some of the non-publicly traded REIT’s considering liquidation, or actually moving forward with liquidation. This is favorable because we all want liquidity on these investments.

 

While June was a busy month at Wamhoff for rebalancing portfolios, it was also a busy month for our Honduran charity, Just Because We Care. We held our big golf tournament, the major fundraiser of the year, on June 10th. We also hosted a game with the River City Rascals, Wamhoff Night at the Ballpark, on June 29th, where we were joined by many clients and friends. These two events raised much needed funds, as costs continue to rise in Honduras. Because of this, we weren’t able to build a house last year, but we are continuing to feed the children five days a week. They are doing well, grades continue to improve, and we now have eight children in college!

 

My work in Honduras is a constant reminder that there are so many who have far less than us, and who struggle just to get their basic needs of food, shelter and clothing met. Join me in reflecting on all that we have, and giving thanks for being so blessed. I am thankful for many things, and am very blessed to have great friends like you, and a family that is very supportive. Know that my main job is to invest your money so that you are taken care of, and rest assured that is what I do every day.

 

We appreciate your support and loyalty, and would welcome an opportunity to help your friends and family with their retirement planning. Stay healthy, wealthy and wise … and certainly, stay tuned.