Tuesday, May 12, 2009

Intel/International Bonds as a Non-Correlated Asset

Intel said after the close today that orders were "a little better" than expected so far in the second quarter.  INTC is still maintaining that the bottom was hit in the first quarter.  I own some Intel shares.  My average cost is around 15, and I have been reinvesting the dividends to buy additional shares. 

I dumped most of my Currency ETFs last year except for FXA, the ETF for the Australian dollar.  I have not been paying much attention to it until last evening,  and I noticed that it has moved up about 6 bucks since 4/20/09, having hit a bottom at around 64 in February and March. CRRNCYSHR AUS DLR TR ETF Chart - Yahoo! Finance

This is a link to a worthwhile article on the use of International bond ETFs in an investor's asset allocation, including a discussion of how foreign bonds correlate  to treasuries, a factor to consider on the issue of asset diversification in an asset allocation.  I own BWX and WIP.   I am aware of the newer ETF from Ishares for International Treasury Bonds (IGOV). This is a link to IGOV from Ishares:   iShares S&P/Citigroup International Treasury Bond Fund (IGOV): Overview  If and when I buy IGOV, it would be primarily an asset allocation move to build up non-correlated assets and to make a play against the dollar.  The expense ratio for IGOV is currently .35% which is good for this type of investment.   BWX has a .5% expense ratio but has more holdings. SPDR Barclays Capital International Treasury Bond ETF I have a good sized position in the international bond ETFs already. 

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