Is This A Good Ime To Transfer From Mutual Stock Funds To A Bond Fund?

[PeaceBlondie]

I have money in two socially responsible mutual funds, one USA and the other European. They have finally bounced, but maybe it is a dead cat bounce. Bond interest rates may be near their low. I can transfer the funds in one quick phone call, with no immediate tax consequences (all these funds have paid their year end dividens already_.

Any advice from gurus? The symbol of the fund is DSBFX

[Journalist]

You're too late on taking money out of equities to put them into bonds.

Bond yields are low - true - but that means their price is correspondingly high. So the cross you are making is expensive.

[OriginalPoster]

I have money in two socially responsible mutual funds, one USA and the other European. They have finally bounced, but maybe it is a dead cat bounce. Bond interest rates may be near their low. I can transfer the funds in one quick phone call, with no immediate tax consequences (all these funds have paid their year end dividens already_.

Any advice from gurus? The symbol of the fund is DSBFX

If you must buy bonds, I'd go for buying individual bonds instead of a fund. Probably I'd go for buying individual TIPS at auction, or else buying ones that are trading below par on the secondary market, with the intention of holding them until maturity. But I'm not sure that I'd even do that now since over about the past month real yields on those have dropped by about a percent.