Investing Wisely

Non Stock Fund Recommendations

Investing in the stock market is not for everyone. Even the most aggressive investor should have some of their money in non stock investments. We have compiled a list of those funds.

Long and intermediate term bond funds are going to fall in value as interest rates rise. We cannot recommend long and intermediate bond funds at this time.

Short term bond funds: In a rising interest rate environment you want short duration bonds. Our recommendations on these funds are as follows:

Janus Short-Term Bond fund symbol JASBX. This fund has never lost money in a given year.

PIMCO Low Duration bond symbol PLDDX. The most this fund ever lost was 1.58% in 2008.

High yield bonds funds. High yield bond funds tend to do very well when the economy is improving. During the credit crunch of 2008 these funds took a bath .We believe the worst is over for the recession and companies will not be going out of business in mass. These economic conditions will lead to nice returns for these funds.

Recommendations in the High Yield sector are:

Artio Global High Income symbol BJBHX.

Janus High Yield fund symbol JAHYX.

These funds have nice upside potential however you must be able to accept the magnitude of losses seen in 2008 which were close to 50%.

Other funds:

PIMCO Foreign Bond Fund PFODX.

Arbitrage Funds: These funds invest in mergers and acquisitions.

Arbitrage Fund Class R symbol ARBFX.

Gabelli ABC fund Symbol GABCX