Silicone Valley tycoons "believe" in the free money because it shuts off talk about alternatives, and leave their wallets bulging. If tech & AI specifically, are going to cause increasing disruption of the job markets, one answer is to tax AI and slow it down.
Commercial replacement of human by 'droids', can certainly be regulated, by taxing it. (Tech execs certainly wouldn't like this alternative. I don't care!). How? Example: Your local grocer or retailer likely already has "self-checkout" scanning units. The Govt could require registration of all such units (failure to register would result in crushing fines). The registered droid (and future droids) would no longer be a deductible or depreciable asset for tax purposes. Moreover, the IRS would require the owner of the droid to impute income for tax purposes (income- and payroll-taxes). The droid's owner would be required to send the tax on the imputed income to IRS. Taxes remitted on behalf of the droid would also NOT be tax-deductible. This taxing protocol could be implemented to include those annoying automated answering machines too.
Basically, rather than the US Treasury subsidizing droids, they treat them as taxable "persons" -- and disallow businesses from deducting any costs associated with them.
Should droids enjoy a more favorable tax rate than human? I think NOT!!
Even if every business owner continues to layoff humans in favor of droids, at least the droids' taxes would fund a lot of benefits for current and former human employees.

Many of the people who believe in Basic Guaranteed Income like the Freedom Dividend are from silicon valley’s tech sector. They believe because they realize what’s happening. By one estimate 50% of American jobs will soon be replaceable with technology and not enough new jobs will be created to take their place. So let’s say we eventually hit 20% unemployment because of that. What do you think America will look like then without a Freedom Dividend? Perhaps if Yang included a tech tax with the Freedom Dividend to pay for it it would be more acceptable to you.

@JohnN: Sorry John, but I don't call losing sixteen months of interest at 7.375% nice. I'm not complaining, bought the bond on7/19/17 at little less than par, so the capital appreciation plus a excellent yields was a win-win. Now I'll have to put the proceeds to work at a lot less the 7.375%
Regards,
Ted

@MFO Members: Today Hertz called in the chips on my HTZ 7.375% bond maturing 1/15/21. This is the downside of having a callable bond, and a by-product of much lower interest rates.
Regards,
Ted

FYI: The market has a Clark Kent these days, it’s low-volatility stocks: Beneath their dull facade lies a superhero defying mortal pressures.
Leuthold’s director of research and equities, Scott Opsal, made that comparison in a post on Friday. He argued that while low-volatility stocks are richly valued, they’re benefiting from strong investor momentum, falling interest rates, and investors’ ongoing demand for safety.
Regards,
Ted
https://www.barrons.com/articles/low-volatility-stocks-etfs-51565377446?mod=md_mf_news

FYI: U.S. stock index futures were higher Monday morning, after China’s central bank set the official midpoint reference for the yuan at a stronger-than-expected level.
On Monday, the People’s Bank of China (PBOC) set its daily midpoint for yuan trading — which determines the limits for its onshore movement — at 7.0211 per dollar. That was weaker than Friday’s session, but beat market expectations.
On the data front, the Federal Budget for July is expected to be published at around 2:00 p.m. ET.
In corporate news, Sysco and Barrick Gold are both expected to publish quarterly earnings before the opening bell.
Bloom Energy and Tencent Music will report their latest results after market close.
Stocks across the globe rallied Monday, with Chinese markets advancing by the most in over a month, following a roller-coaster week in which U.S.-China trade tensions shook asset prices across the board.
The Shanghai Composite Index climbed 1.5% after the Chinese central bank set the yuan at a stronger rate than traders had expected—7.0211 to the dollar—easing concerns of a quick devaluation after President Trump last week accused China of manipulating its currency.
The benchmark Stoxx Europe 600 index gained 0.9%, led by a 1% advance in Germany’s DAX.
The positive turn in markets comes despite fresh gloom around U.S.-China trade talks, with Mr. Trump on Friday suggesting that negotiations could break off.
Among the biggest gainers in Europe was Tullow Oil , TUWOY 2.75% whose shares rose 17% after the company said it had found more oil off the coast of Guyana. Shares in ams AG AMS -8.70% , a 3-D sensor maker that supplies to Apple, dropped 9% on reports that the Austrian company has put in a bid to take over German lighting company Osram Licht , creating a bidding war with private-equity buyers. Shares in Osram were up 10% early Monday.
In Asia, amid a day of light trading with a number of regional exchanges closed, Cathay Pacific fell 4.5%, putting the Hong Kong airline on course to close at its lowest level in more than a decade. China’s aviation authority on Friday ordered the carrier to remove all employees involved in the protests in Hong Kong from flights to mainland China. The most closely watched class of shares in Swire Pacific, the Hong Kong conglomerate that is Cathay’s largest shareholder, fell nearly 6%.
This week, investors will be watching for new consumer price inflation estimates from the U.S. on Tuesday after the U.S. Federal Reserve cited subdued inflation as one reason for cutting rates last week. Consumer prices increased 0.1% between May and June.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-jump-led-by-china-rebound-11565599208
Bloomberg
https://www.bloomberg.com/news/articles/2019-08-11/stocks-to-dip-after-u-s-drop-as-caution-reigns-markets-wrap?srnd=premium
IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-apple-stock-amd-lockheed-amazon-zscaler-stock-market-correction/
CNBC:
https://www.cnbc.com/2019/08/12/stock-market-wall-street-in-focus-after-china-fixes-yuan-at-stronger-than-expected-level.html
U.K.
https://uk.reuters.com/article/uk-britain-stocks/uk-shares-gain-broadly-thomas-cook-tanks-idUKKCN1V20J8
Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-rebound-ams-bid-for-osram-puts-ma-in-focus-idUSKCN1V20K5
Asia:
https://www.marketwatch.com/story/asian-markets-make-cautious-gains-following-rocky-week-2019-08-11/print
Bonds:
https://www.cnbc.com/2019/08/12/us-bonds-treasury-yields-tick-lower-amid-trade-war-concerns.html
Currencies:
https://www.cnbc.com/2019/08/12/forex-markets-us-china-trade-concerns-remain.html
Oil:
https://www.cnbc.com/2019/08/12/oil-markets-demand-outlook-us-china-trade-war-in-focus.html
Gold:
https://www.cnbc.com/2019/08/12/gold-market-trade-tensions-and-recession-worries-linger.html
Cuirrent Futures:
https://finviz.com/futures.ashx

Much of the difference is in how much borrowing the funds do. PTTAX pays 0.25% in interest expenses, while PONAX pays 0.55%. I assume this is borrowing is for the purpose of leverage. Under "Leveraging Risk" the prospectus reads:
"to the extent a Fund borrows money, interest costs on such borrowings may not be recovered by any appreciation of the securities purchased with the borrowed amounts"
The remaining 10 basis point difference in ERs is in the management fee, 0.65% vs 0.55%. You can eliminate the 0.25% 12b-1 fee and also cut the management fees to 0.50% and 0.46% respectively (just a 4 basis point difference) by buying the institutional class shares (with a brokerage transaction fee).
The current rate of interest (low yield environment) isn't as important as the spread between short term and long term rates when it comes to making money by leveraging fixed income securities. What matters is that you make more on the securities you buy than you pay in interest for the cash to buy those securities.

See: https://mutualfundobserver.com/discuss/discussion/51839/fidelity-draws-adviser-wrath-with-1-9-cash-offer

@edmond: Nice work. I enjoyed reading your analysis. Please keep posting your thoughts. In converting Old_Skeet's market barometer to score AGG (bonds) this can be done; but, instead of using the earnings feed which I use for stocks I used a yield feed along with a breadth technical score measure (over a physical count measure) plus a technical score feed. With this, based upon these metrics, the barometer produced a reading of 125 indicating that bonds are extremely overbought.
In comparison, based upon the last barometer reading for the S&P 500 Index, stocks came in with a reading of 157 indicating that they were under valued.

Spending this afternoon looking at some long-term stock & equity-index charts. Just thought I'd jot down some impressions.. Just thought I'd memorialize some thoughts, for my own benefit as much as anyone else's...
Bonds (AGG) - At $112.xx, bonds appear to be at major L/T resistance, having reached this area in 2013, 2015 & 2017, only to then turn back down... Nothing prohibits a continued move up, but MAN, the YTD move has been a rocket. Nothing grows to the sky.
S&P index: Broke out past resistance in July, north of the mid-2900's. Then promptly fell back. (i.e. so far, could not hold the breakout). July is seasonally a strong equity month (and that is what we saw this year). Aug & Sept (& Oct), often give back a lot of points. Looking 'below the surface' of the index, here is how I interpret l/t charts of some of the larger stocks:
***For the optimists out there, I suppose you could replace the word "topping" with "consolidating prior gains, awaiting the next leg up".
CONSUMER DISCRETIONARY
AMZN 22% of XLY -- L/T topping? ***
HD 10% of HLY - L/T topping? ***
MCD 7.5% of HLY - No resistance, but PE 29. (while S&P categorizes MCD as 'discretionary', I view it as 'the poor man's kitchen' (i.e. a consumer staple).
COMMUNICATIONS
GOOG /-L 24% of XLC – L/T topping? ***
FB 19.5% of XLC - - L/T topping? ***
TECHNOLOGY
MSFT 20% of XLK - No resistance. But extended?
AAPL 16.5% of XLK - L/T topping? ***
FINANCE
BRK.B 12.2% of XLF - L/T topping? ***
JPM 11% of XLF - L/T topping? ***
INDUSTRIAL
BA 7.9% of XLI - L/T topping? ***
HON 5.5 of XLI - only possible s/t topping
UTX 4.7% OF xlI -L/T topping? ***
DJT -- L/T topping. 2019 highs are below 2018 highs.
In most cases, as I write this, the stocks are not at "the top" (i.e. all time highs), but they do appear to be range-bound, somewhere between their high, and what might be deemed "support", technically speaking. As CNBC technician Randall Carlson likes to say "topping is a PROCESS, not a (single-) price".
Disclosure: As time was limited, I didn't view the Utes, or Materials (each ~ 3% of the index), or Energy & Healhtcare -- each of those seems to mostly move to their own tune, rather than general economic conditions.
Meanwhile:
World equities-EX-US (IXUS): These peaked in January 2018, then nosedived through 2018. Then rebounded in 2019 to $60.xx but turned back down. $59-$60 seems to have become the new resistance level.
European markets, removing the FX effects (HEDJ) seems absolutely refusing to breach a line of resistance in $66-67 area. Its tried and failed 7 times in the past 5 years to do so, including in July... How healthy can ANY equity market be, if it supported by interest-rate suppression like what we see there...? The UK (EWU) appears to be at/near support -- presumably the market is being avoided as we approach Brexit. Might be persuaded to dab a toe in here..?
Japan (DXJ, hedged for FX) -- I always find it hard to "read" the Japanese market technically. I can only say that in mid-August 2019, it certainly cannot be said to be in a bullish uptrend..
China (FXI)... Strangely, FXI seems to be "at support" ~ $38.xx. -- Off about 28% from its recent (early 2018) highs.
India (INDA). Another market that I find hard to "read" --- volatility is often intense/sudden, both up and down. That said, with the exception of a "blow-off top" in January 2018, $35-36 seems like rather dogged resistance. I'd be surprised if it broke above it
Gold (IAU) - Could definitely use a rest (i.e. pullback) after recent sudden move up. But, what I see is:a) higher-lows since the late 2016 low, b) successful breach through the intermediate-term line of resistance at $13.xx price area, and from a fundamental standpoint, any significant currency dislocations (e.g. US, China, UK or Europe) OR geo-political conflict (Persian Gulf, or more acutely, Kashmir) could return IAU to the 2012-2013 resistance area (or beyond)...
TAKEAWAYS: Bonds look extremely stretched/overbought. Foreign markets have not overcome their January 2018 highs, despite an enormous "up move" in H1-2019. In many cases, major growth stocks in the S&P, seem to be slightly under lines of price resistance -- suggesting at least a modest move up toward resistance is in the realm of the possible. However, much of the market does appear to be in a trading range, suggesting any move up will not have "legs" and may well be turned back as prices move into their zones of resistance. Risk/reward doesn't strike me as particularly attractive.

Ed Yardeni has been around Wall Street for decades. -- Maybe even back as far as the old Wall Street Week era. Having been around a long time, he brings experience, sobriety, and perspective to his analysis, which is often lacking by most of today's professional "blogsters".
I 'check in' on his blog from time-to-time. This week's post (dated 8/5/19) seem particularly cogent, and covers a lot of ground about markets, the national economy, "stagnant income" (he thinks the data shows income has NOT been static), and much more.
blog.yardeni.com

I just noticed that the expense ratio for PIMCO income A is 1.45%. I realize that they are trying to slow down inflows (I think that this correct), however, 1.45% is too much. Assets are at $130 billions as of August 11, 2019. On the other hand, expense ratio for PIMCO total return A are 1.05%. Not sure how much outperformance PIMCO income can accomplish in the future with a 1.45% expense ratio in a low yield environment.

Many of the people who believe in Basic Guaranteed Income like the Freedom Dividend are from silicon valley’s tech sector. They believe because they realize what’s happening. By one estimate 50% of American jobs will soon be replaceable with technology and not enough new jobs will be created to take their place. So let’s say we eventually hit 20% unemployment because of that. What do you think America will look like then without a Freedom Dividend? Perhaps if Yang included a tech tax with the Freedom Dividend to pay for it it would be more acceptable to you.

I hear your $1k/month, and raise you $4k..
My fellow Americans, candidate Yang is tossing you scraps! $1k is subsistence living. Vote for me instead -- I will pay each of you $5k/month. No, wait $10k/month!
Ask not what you can do for your country, ask instead how much your country will pay you for being unproductive slackers! In fact, I will offer $10k/month to all Mexican, Honduran and Guatamalan families who can sneak across our border too (and come they will -- who wouldn't come for "free stuff"). Paying immigrants to come here and NOT be productive is truly what Lady Liberty stands for. Give me your huddled masses yearning... for free money.
---
The above is of course, satire.
But what would $1k do? Increase the price of a)lodging (renting or home prices), b)restaurants, c)labor
---
Yang (and the CB's) seem to think lack of inflation is problem. Its not. Stable prices are a good thing. Having the purchasing value of one's accumulated saving NOT be debased is a good thing.
Of course, I encourage philanthropy. If Mr. Yang and other "freedom dividend" advocates believes giving money to strangers for doing nothing is a good idea, by all means, let them give THEIR money away.

Take a look at this chart. You can switch between growth and price. I will miss this when it disappears from M*....
https://quotes.morningstar.com/chart/fund/chart.action?t=tmsrx&dataParams=%7B%22zoomKey%22%3A11%2C%22version%22%3A%22US%22%2C%22showNav%22%3Atrue%2C%22defaultShowName%22%3A%22name%22%2C%22mainSettingId%22%3A%22main%22%2C%22navSettingId%22%3A%22nav%22%2C%22benchmarkSettingId%22%3A%22benchmark%22%2C%22sliderBgSettingId%22%3A%22sliderBg%22%2C%22volumeSettingId%22%3A%22volume%22%2C%22defaultBenchmark%22%3Afalse%2C%22id%22%3A%22F00000Z2SL%7CFOUSA00EKJ%22%2C%22type%22%3A%22FO%7CFO%22%2C%22region%22%3A%22USA%22%2C%22name%22%3A%22XNAS%3ATMSRX%7CXNAS%3ARPSIX%22%2C%22baseCurrency%22%3A%22USD%22%2C%22defaultBenchmarks%22%3A%5B%22%22%2C%22%22%5D%2C%22chartType%22%3A%22growth%22%2C%22startDay%22%3A%2207%2F01%2F2018%22%2C%22endDay%22%3A%2212%2F31%2F2018%22%2C%22chartWidth%22%3A955%2C%22SMA%22%3A%5B%5D%7D

@MJG
You penned: "Daily or weekly reviews of a portfolio’s value is a Loser’s Game."
My oh my; quite the rigid statement suggesting an inability of someone not being capable of a combination of emotional, intellectual or intuitive decision making regarding their portfolio.
Simply observing weekly portfolio/other market data does not impel or compel someone to take any actions; but can be part of a meaningful learning and study habit. Malcolm Gladwell would likely agree, yes?
As to those who would do harm to their portfolio from weekly observation of same or market data; I suggest these same folks are not yet fully developed to understand their nature. This further suggests these same folks would have some difficulties with other aspects of their live's and decision making. Of course, these folks exist; and may be observed by simply driving on the roads among them and observing their driving habits.
Living in Michigan, where I have experienced the weather extremes of a 120 degree heat index to a -45 degree wind chill factor; if I didn't pay attention to at least the weekly weather forecast, I would be ill prepared to have any sort of plan for anything I may want or be able to do.
I have reviewed the daily and forward weather forecast and discovered I am able to properly position my "work portfolio".
Lastly, we reviewed our portfolio and other market data on Saturday, as is the norm; and I am able to report that no harm has taken place within our investment portfolio.
Regards,
Catch

Hi Hank,
I’ve never been fast, but I am persistent. Why not make the comparison by doing it in several easy steps, one for each fund? Make several visits to Fidelity:
https://fundresearch.fidelity.com/mutual-funds/summary/77958R100
Plenty of info is available with a little effort. Good searching!
Best Wishes

Americans are no more likely to collect the “Freedom Dividend” than they are to win the next Mega Millions lottery jackpot,

I wonder if journalists said the same thing about Social Security before it existed. All the Freedom Dividend is is Social Security for everyone. Indeed, for Americans over 65 the Freedom Dividend already exists.

Hmmm ... A review of recent threads:
“Big trouble ...”
“Where to hide ...”
“How this bull market will end ...”
“Bond Market’s Dot Com Moment...”
“S&P 8X more likely to drop 5% in a month ...”
“Saving ourselves ...”
“... take shelter from stock market storms”
“Dodging the dangers of dividend stocks ...”
-
Time to go pour myself a drink. :)

Once again we see context insensitive data masquerading as something applicable to now.

Specifically, based on Trefis analysis of many decades of data:
There is overall about 8% chance that S&P 500 will drop by -5% or more, over 20 trading days (roughly a month)
There is ONLY about 1% chance that S&P 500 will rise by 10% or more, over 20 trading days (roughly a month)

Does one really need machine learning to count the number of rolling 20 trading day periods where the market goes up 10% or drops by -5% (drops by a negative amount)? But I digress.
This generic observation applies just as much to June 2009 as to July 2019. But the contexts are very different. This result does not apply specifically to now, despite the text of the article saying that "over the next month, the S&P is roughly 8x more likely" to lose 10% than rise 5%."
Look carefully at the numbers - of course the market is much more likely to move 5% (in either direction even given an upward bias) over a month than it is likely it is to move 10%. What is this headline telling you that you don't already know?