This contributor has concerns about volatility and is recommending a short-term move into this 5-star short-term bond fund.
PIMCO Short-Term D (PSHDX)
From No-Load Mutual Fund Selections & Timing
Inflation is picking up. The latest GDP (gross domestic product) report for Q4 2017 showed the price index increasing 2.5%. CPI (consumer price index) for all items is up 2.1% for the last 12 months. PPI (producer price index) for all items is up 2.6% for 2017.
Then we add the new tax changes that suggests even more inflation ahead. The good news is the economy is growing. The bad news is this will be impacting bonds (yields higher and prices lower) even more.
We still expect at least three more rate rises in 2018, but if current trends continue, we will ratchet that up. The Fed is lagging.
The high-yield area of bonds remains relatively stronger followed by international bonds. Domestic short-term and Treasuries remain relatively weak.
We will buy PIMCO Short-Term D (PSHDX), an ultra-short bond fund.
Stephen L. McKee, No-Load Mutual Fund Selections & Timing, www.investments.com, 800-800-6563, February 2018