In November 2016, interest rates rose dramatically. While investment grade bond mutual funds lost value, the 20:20 Bond Strategy produced a profit.
In 2016 prior to the Presidential election in November, interest rates declined then returned to level. Both investment grade bond mutual funds and the 20:20 Bond Strategy produced a profit.
Economic Recession or Expansion
During a recession, as interest rates decline, the Strategy is designed to profit as do investment grade bond funds while high yield bond funds may plummet.
During an economic expansion, as interest rates rise, the Strategy is designed to profit as do high yield bond funds while investment grade bond funds falter.