"F" Fund Basics

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Partyartie

Partyartie

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I understand that the F Fund is invested in Barclays U.S. Debt Index Fund, which tracks the Lehman Bros. US Aggregate Index. Since this is an index fund, it is not actively managed. Am I correct in assuming that given these facts, the bonds held are not adjusted with respect to maturities? For example, in times of rising rates, bonds with longer maturities are not replaced with shorter maturities. Thanks...:)
 
I think your question is a little to hard for the "F" fund gurus!:D
 
Partyartie said:
I understand that the F Fund is invested in Barclays U.S. Debt Index Fund, which tracks the Lehman Bros. US Aggregate Index. Since this is an index fund, it is not actively managed. Am I correct in assuming that given these facts, the bonds held are not adjusted with respect to maturities? For example, in times of rising rates, bonds with longer maturities are not replaced with shorter maturities. Thanks...:)
Click to expand...

That's correct.
 
Alrighty then....Just spinnin the brain cells here and wondering, which may not be good. LOL

What market indicators does one look at for the F fund in order to get somekind of indication of where it may go?

Thanks for any info.
 
Wolverine said:
Alrighty then....Just spinnin the brain cells here and wondering, which may not be good. LOL

What market indicators does one look at for the F fund in order to get somekind of indication of where it may go?

Thanks for any info.
Click to expand...

$TNX is a good one for the 10yr yield, but I look at all of them. www.cnnmoney.com has a bonds page that gets updated every 5 minutes. Look under market data.
 
350zCommTech said:
$TNX is a good one for the 10yr yield, but I look at all of them. www.cnnmoney.com has a bonds page that gets updated every 5 minutes. Look under market data.
Click to expand...

Thanks 350z.......The 5 minute updates are interesting. So this leads me to another question tied into all this. LOL

Lets see if I can ask this without confusing myself and you.

Y'all look at the OSM to see what they are doing and it seems to give an indication of what the I Fund will do here the next day. Can one do the same thing with the F Fund by looking lets say at these 5 minute updates?

The F Fund went down a bit today. All those 5 minute updates are still in the red as of now, which corresponds to what happened today. How would you gather info from just those in order to maybe wanting to do an IFT into the F Fund for the next day?

What I am getting at here is, can you somewhat do the same thing with these 5 minute updates as you can with looking at the OSM for the I Fund?

Would something tell me before noon possibly with these updates that could lead me in a decision of seeing the F Fund go up or down for the next day?

Hope I didn't confuse you here. LOL
 
It's almost as confusing as when the yen goes from 118 to 116 and they say it is up.
 
nnuut said:
Good article on Bonds and the Housing Market!!

Can't the Fed help clean up the housing mess?


http://www.msnbc.msn.com/id/17541526/
Click to expand...

Nope. The damage is already done when it comes to the sub-prime fiasco. The damage was locked in when the loans were made. There is nothing anyone can do at this point to un-do what will become, over the next year, a cascade of failures related to so many mortgages turning into foreclosures.

Free money- interest only home loans. Not a no thing at all. Once before, there was a large number of variations in the way people financed home loans...

This is eerily reminicint of 1929....

Take a look at the comparisons on this website:
http://www.illuminati-news.com/great-depression.htm
 
So the question becomes, in times like these, and what is directly ahead,

Is the "F" fund a good place to put your nest egg?
 
Re: F Fund for a deflation trade.

Okay, those looking to play with F as a longer term hold towards a 'deflating' economy, be weary. Reason being, the average bond duration for Aggregate Bond Index is only around 6.2 years. The low end durations (<10 years) have been manipulated by the Fed's artificially low interest rate and really don't have any upside left. (Basically, the Fed buys the short end to keep rates low.) The high end bonds (30 year treasury) have been flying off the handle because that is where the buying interest has been amongst institutions. Usually a 30 year is yielding at least high 4% (or 5%), whereas today it yields 3.69!

We shall see whether the rejection on Friday was a reversal of the deflation trade or 'profit taking' :rolleyes: at resistance.

I'm personally out of treasuries for the deflation trade as I closed out positions last Wednesday. I do, however, have some exposure as part of a diversified LT indexed portfolio.
 
Bullitt, thank you for your thoughts on F Fund. I'm still about 45% in F and wishing I'd had your prescience on when to exit.

Maggie
 
I'm thinking about parking some into F fund tommorow, what are your thoughts on that. I'm wondering if this is a bad idea? I hear there is a bond bubble, but I mean seriously, with the stocks tanking people should still be driving bonds up right? :confused:
 
Afishegg said:
I'm thinking about parking some into F fund tommorow, what are your thoughts on that. I'm wondering if this is a bad idea? I hear there is a bond bubble, but I mean seriously, with the stocks tanking people should still be driving bonds up right? :confused:
Click to expand...

http://www.tsptalk.com/mb/showpost.php?p=282953&postcount=15

big.chart
 
ok?....help me understand what that chart says. It's way up so it's gonna come down soon?....(i'm reeaal slow):nuts:
 
That last big red candle ain't lookin too good. This thing's had a nice run. How much longer do you think it's gonna last?

There are people looking at the 1010 level in the SPX. Theres a good chance that there will be some buyers there and that money might come out of bonds.

Show-me posted this link in his account talk thread.

http://finance.yahoo.com/news/Inves...57.html?x=0&sec=topStories&pos=6&asset=&ccode


You might want to check my position on the tracker before you listen to anything I have to say.

Make your own decisions and live with the consequences.
 
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