So I found this forum a little too late and still have a significant chunk of money in the bond market. So now what? Cold turkey? Reverse dollar cost averaging? What’s my exit strategy? I have about 35% of my TSP in the F and several thousand shares of PIMCO Total Return outside. Any ideas would be appreciated.
I have a hard time believing interest rates have any potential for dropping and are more likely to continue trending upwards as the Fed starts to throttle back quantitative easing, so I would go cold turkey if I had any exposure to bonds. Best case is interest rates stay roughly where they are for a few months so the TSP F Fund gets a percent or two of return during that time, but that minimal reward does not outweigh the very real risk of another spike in rates in my estimation. There is always some possibility there might be a month or two mixed in going forward where the F Fund looks like it is turning back around and people who want to believe they are going to get some of their losses back will seize on that and hold on. But while I am a big believer in reversion to the mean, I don’t think that reversion is coming for a couple of years.