10-Year CDs @ 4% On the Schwab CD quote page, under New Issues, they organize the CDs by term (1 month, 3 month, 6 month, 9 month, 1 year, 18 months, 2 years........), and the listings are only for FDIC insured banks. For each Bank listed, they then give a clear statement of the coupon interest rate it is paying, the frequency of interest rate payments, and what the Maturity date is for the CD. Again, I discussed all of these details in conference calls with Schwab representatives, and the subject of my call was to ensure there is no difference between CDs you buy directly from a bank, compared to CDs you buy from the banks through the brokerage. I am confident that that information is correct. However, I did not do additional extensive research on each bank to determine if they are "financially shaky banks", to use your terminology. I will say that your statement above, about Brokered CDs fluctuating in value according to bid/ask is accurate, and in my conference calls with Schwab, they did not acknowledge that difference from CDs offered directly from banks. When I monitored my CDs in my account, I did see those daily values changing very frequently, and that was a surprise to me. I called my regional Schwab representative back, she acknowledged that "they could have done a better job with that aspect of the description brokerage CDs", but she then connected me with the CD office at Schwab, who assured me that those fluctuating daily values are "just paper values", and if I held those CDs to maturity, I would get all the coupon interest accurately quoted on their CD brokerage page, and on the maturity date I would have CD amount distributed back into my account cash account. I do believe that there are some differences in the penalties, for early selling of the CDs, between brokerage bought CDs and Banks, so you need to be fully aware of those penalty differences if you have any plans on doing that.
10-Year CDs @ 4% Thank you for the update
@dtconroe. I also buy from Schwab and what you state has been my understanding over the
years. Schwab clearly states that all banks on their new issue list are covered by FDIC. Because all the banks listed are FDIC insured, how big or small the bank is or where it is located hasn't been a concern to me. I hope that is not a naïve view.
10-Year CDs @ 4% Local CU here (Hickam FCU, Oahu) offers 0.85% interest rate on a 60-month CD. And to get that, you must tie-up $200k. That's just a bad joke. Navy FCU--- my other one--- wants you to let them hold your money for SEVEN years in order to get 3.15% from them. No, thanks.
10-Year CDs @ 4% Everyone will put their on spin and expectations on this bear market, strong probability of becoming a recession. For me, I am 74, and 9 years into retirement. My focus is to preserve my accumulated assets, and to do my best to make a positive return in this tough market. I exited the market several months, with a slight YTD loss--less than 1% and have been in money market funds. I am now adding shorter term CDs to my portfolio, to ensure I will finish with a positive total return by year end. My focus is on 6 to 9 month CDs, which have been going up in interest return in the past month. I am expecting shorter term CD interest rates to rise significantly by the end of the year--if I am correct, I will look at some laddering for 2023, but if I am wrong and this bear market/possible recession is shorter than I have predicted, then hopefully I can catch some of the rebound and maybe more stability in investing. My current, imperfect opinion, is that 2022 will not improve for the remainder of the year, and 2023 will not start off well--I may very well be wrong, but I think the Feds will continue raising interest rates to try to beat down inflation, oil supply will struggle for the rest of the year, and we will start seeing unemployment creep up. All in all, I would prefer the safety of CDs until I see more positive signs that this bear market is over.
PREMX / Issue? Owned PREMX
years ago, glad I'm not in anymore. I often look at it for fun and noticed what
@hank has noticed. I compare(d) it to FNMIX--- which always did a bit better, back when. But FNMIX is in the crapper, too.
Importance of Consecutive 90% Down Days ???? Over the past month,
losses among sectors have been fairly uniform. Overweight investments in the energy and utilities sectors mitigated my overall YTD stock market losses until then with the past week hurting my portfolio the most. It appears to me the stock market decline has recently entered a new, more generalized selling phase as it moves towards it's eventual bottom. So, I suspect the 90% down days information at the start of this thread represents more than random event -- particularly if it truly spans almost 100
years of data. Every cycle is different and the recent Fed activism adds a new wrinkle. But, even so, I wonder if history could provide useful information to those who are able to read it.
Wealthtrack - Weekly Investment Show “Mary Ellen has 43 years of investment experience managing a broad range of fixed income portfolios. She is responsible for the formulation of fixed income strategy as well as the development and implementation of all fixed income asset management services. Mary Ellen serves on the board of Baird Financial Group, is President of the Baird Funds and is chair of the Baird Diversity Steering Committee.” SourceCurrently age 64. Must have begun managing money at 21. The
Bond Bull began 2
years later.
2022 YTD Damage Another possibility is BRUFX (Bruce fund). Like DODBX its stock holdings are large value, while PRWCX/TRAIX is large growth. But while DODBX has a 49% turnover, Bruce is only 4%. So in a non-tax-deferred account your after tax return is higher with BRUFX than with DODBX (9.54% vs 9.08% average over last 3 years and 7.62% vs. 6.97% average over 5 yrs. ), but 1 and 10 yrs DODBX did better.) I think that TRAIX and BRUFX complement each other. You need to buy Bruce directly from them, but it is easier to hold as it is considerably less volatile (3 yr beta of 0.95 vs 1.34 for DODBX and 1.04 for the T. Rowe Price offerings.). Bruce's site is www.thebrucefund.com
Wealthtrack - Weekly Investment Show
Wealthtrack - Weekly Investment Show How do you manage through a cycle of rising interest rates and higher inflation? There aren’t too many money managers who have that experience …
The bond bull market began in 1981.
That’s about 41
years ago.
Let’s assume the manager had
a minimum of 10 years experience as an investment manager / advisor preceding the bond bull market.
If age 15 when he / she began their career they’d be 66 today (in or near retirement).
If 25 when he / she began investing they’d be 76 today.
If 35 when he / she began investing they would be 86 today.
Wealthtrack - Weekly Investment Show How do you manage through a cycle of rising interest rates and higher inflation? There aren’t too many money managers who have that experience and have a track record of excellence through many different types of markets. This week’s guest does. She is Mary Ellen Stanek, Co-Chief Investment Officer of Baird Advisors.
Stanek was recently named Morningstar’s Outstanding Portfolio Manager of 2022 for her “disciplined and risk-aware approach, thoughtfully navigating various market environments,… and generating impressive absolute and risk-adjusted returns” in her 22 years at Baird.
M* screwing everything up again @msf: Yes, for
years I entered shares owned to the mutual funds I entered in what I thought was portfolios but were actually watchlists. And it functioned perfectly well. But I found a button that allowed me to instantly convert "legacy" watchlists to legacy portfolios (albeit one by one) and these migrated automatically to the Investor section to become "investor portfolios". But I would have preferred they just left things as they were. Now there are too many bells and whistles. That usually means there are more things to become dysfunctional more often.
M* screwing everything up again OK, I worked it out. Apparently what I have been calling "portfolios" M* has been calling "watchlists". There is an option to migrate watchlists and that was quick and easy to use.
The legacy portfolio manager has for many
years had both portfolios and watchlists. M*
describes the difference between a legacy portfolio and a legacy watchlist thusly:
A Portfolio contains detailed data on holdings including purchase date, shares, and price, and allow for greater historical tracking and analysis.
A Watch List can be used to track stocks/funds of interest and only requires entering ticker symbols.
As I recall, the portfolios were supposed to keep track of dividend reinvestments. I don't know whether that was automatic or required transactions to be input manually, but it was added complexity that I didn't care about. So I stuck with watchlists to track portfolios.
With the "new and improved" portfolio manager, M* has changed the meaning of a watchlist and impaired its functionality (the politically incorrect verb is "crippled"). No longer can it be used to track a portfolio. It doesn't let you enter the number of shares you own of a security. So of course it no longer reports the aggregate value of the "watched" holdings, or the daily change of the aggregate.
M* says: "When creating a watchlist you do not enter the number of shares or purchase price."
So what's the point of this stripped down watchlist?
M* says that "The purpose of a watchlist is to track investment ideas or securities that you don't currently own. It is also used to compare 2 or more securities using custom sets of datapoints that you create."
M* screwing everything up again I pay about $50 yearly for an app from Apple’s store. Positives and negatives. Usually one of the prices on a fund is inaccurate or missing.
M* has been fine over several years.
I’m looking now at Yahoo‘s free tracker. Provided recovery email. You can opt out of their request for a phone number, Confusing to set up. Also being bombarded with ads even with my blocker running.
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I was lately locked out of my yahoo mail when Apple fried my computer with an "update." I just created a new email, and used it as access to Yahoo's free tracker--- since the email gives me an account presence. I'm running a few privacy and ad-blocking applications, too. But the page is so BUSY! You're correct. I have not yet tried to go further than simply LISTING stocks/funds I wish to track. Turning me off rather quickly.
AAII Sentiment Survey, 6/15/22 @yogibearbull,
My thinking (minus the Neel speculation) was exactly that. I noticed the presser dynamics too. If there was a severe adverse reaction to the leak, the Fed probably would have stuck to the 50 basis points. With no such reaction, Fed got the permission to push the 75 basis points through.
We had a leak of the Friday CPI on Thursday too. With no transaction fee trading, the markets are moving very fast compared to only a couple of
years ago. Leaks are exacerbating the problem. The volatility across the board has ratcheted up. At some point, the market participants should start requiring higher risk premium, commensurate with the higher volatility, and may effect market liquidity / plumbing in the long run.
I do not like this normalization of the leak culture - not only the small guy gets screwed, it is also not good for an orderly functioning of society.
