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Statements like this are really meaningless. 15 years is pretty long and over long term it's being proven that a very cheap, "stupid" but a smart idea like the SP500 will beat most managed fundsRiffing on @LewisBraham responding to @FD1000: 2001 dot-com specialness -- a lot of "top" companies got to the top and....
In the short run, the market is a voting machine; in the long run it is a weighing machine. Belief in that principle (as well as the logic of buying a quarter for a dime) is what is makes value investing logic appealing to many investors.
I have also read that some of the buying has been driven by funds with a mandate to own the constituents of various indexes.Another maybe bullish sign... This article from the NYT says it's institutional investors (aka smart money) driving this one while Mom and Pop investors (like me) wait it out.
I won't be adding Smead Value to my shopping list. I regularly drive by one of the largest ghost town malls in the country.Cole Smead, a portfolio manager at the Smead Value Fund, has been snapping up bargains in beaten-up parts of the market, like oil and energy producers, homebuilders and shopping-mall companies, that are closely tied to short-term swings in the economy.
I look at numbers like that on top of the burden of corporate leverage, and I wonder what could happen if their debt is down graded.Goldman Sachs economists, for example, expect the gross domestic product to contract at an astounding 34 percent annual rate in the second quarter, with unemployment reaching roughly 15 percent.
That doesn't sound like the sort of discipline Old_Skeet describes as his process.And don’t underestimate the fear of missing out. As shares rise, professional money managers feel pressure to buy stocks to protect their reputations.
“If you wait until the coast is clear, you will have missed a huge part of the gains,” said Matt Maley, chief market strategist at Miller Tabak, a trading and asset management firm. “And professional investors can’t afford to do that.”
https://reuters.com/article/us-health-coronavirus-fed-mainstreet/fed-rolls-out-2-3-trillion-to-backstop-main-street-local-governments-during-crisis-idUSKCN21R1WYIn announcing what may prove its most groundbreaking step in the crisis fight, Fed chair Jerome Powell said the Fed’s role had now broadened beyond its usual focus in keeping markets “liquid” and functioning, to helping the United States get the economic and financial space it needs to fix a dire health emergency.
https://nytimes.com/2020/04/09/business/economy/fed-to-buy-municipal-some-riskier-debt-as-part-of-expansive-programs.htmlThe Federal Reserve said it would buy some junk bonds in a package of announcements that could pump $2.3 trillion into the economy
https://bloomberg.com/news/articles/2020-04-09/powell-pushed-to-edge-of-fed-s-boundaries-in-fight-for-economyBy pushing the Federal Reserve into corners of financial markets it has mostly shunned in its 106-year history, Chairman Jerome Powell is running into some thorny questions.
Like, for instance, how to maintain independence from the U.S. Treasury when the economic-support package Congress passed says they should work together? Or whether the same guidelines for companies receiving federal aid, which range from compensation limits to off-shoring restrictions, apply to the Fed if it gets more money from Treasury? And how about which companies -- and perhaps eventually, municipalities and states -- are invited to borrow and at what cost?
The Fed’s steps into credit allocation are tantamount to “a complete redesign of central banking on the fly.”
The CARES Act “forces the Fed into this almost intimate relationship with Treasury,” said Mark Spindel, co-author of a book about the relationship with Congress. “This is fiscal policy, picking winners and losers.”
As you're a numbers sort of person, could you provide some numbers to go along with your narrative? The story saying that FXAIX "didn't have a lower ER all these years"?
Anyway, let me add that FXAIX does not outperform either Vanguard SP500 product if you go back to their spring 1988 origin, only more recently.
Nothing to do with insecurity, trying to be accurate. FXAIX didn't perform better because it didn't have a lower ER all these years. The main difference between me and others is that I supply numbers and not just narrative ;-)
Obviously, I don't know what type of bond funds you have already or will eliminate. I can only offer this, as we all "see" the markets from our own knowledge and perspective.I am eliminating bonds from my self managed portfolio as much as I can
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