MFO Ratings Updated Through October 2018 All ratings have been updated on
MFO Premium site, including MultiSearch, Great Owls, Fund Alarm (Three Alarm and Honor Roll), Averages, Dashboard of Profiled Funds, and Fund Family Scorecard. The site now includes several analysis tools, including Correlation, Rolling Averages, Trend, Ferguson Metrics, Calendar Year and Period Performance.
This month's update includes the expanded MultiSearch evaluation periods from 2
1 to 38, as described in our
November MFO commentary.
Higher Rates Are Already Priced In, Bond Veteran Says: (PIOBX) FYI: There seems to be no shortage of worries to keep a chief investment officer up at night. Yet, when asked for a quick take on the fixed-income market, Ken Taubes, 60, offers some consolation. “I actually think we’re getting back to a more normal economy, at least in the U.S.,” he says. “Even if the politics seem abnormal.”
The question that has for years been weighing on investors—how bond markets would react to rising interest rates—has largely been answered. “Most of the damage has been done, or it has been priced in,” says Taubes, who has managed the $5 billion Pioneer Bond fund (ticker: PIOBX) for the past 20 years. The fund has returned an average of 5.4% a year over the past decade, better than more than 80% of the Morningstar intermediate bond category; along with its peers and the benchmark, the fund is down 2.4% so far in 20
18.
Regards,
Ted
M* Snapshot PIOBX:
https://www.morningstar.com/funds/XNAS/PIOBX/quote.htmlLipper Snapshot PIOBX:
https://www.marketwatch.com/investing/fund/piobxPIOBX Is Rand #22 In The (IB) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/intermediate-term-bond/pioneer-bond-fund/piobx
last one (I promise)-buying EM Hi
@ET91: I've been thinking of adding a touch of American Funds Developing World Growth & Income Fund (DWGAX) and pair it with their New World Fund (NEWFX) ... but, for now, I'm holding off for reasons stated above by
@DavidV. I'm just not headed towards emering markets at the moment. I've got a few global hybrid type funds and following their positioning I've discovered most of them have been trimming back their emerging market exposure. But, as they trim somebody has to be buying.
sorry one more question-buying funds with large percentage of cash I'm pretty much like
@BenWP on this when it comes to cash and letting my fund managers handle stocks and bonds for me. In addition, I'll tweak my asset allocation and get more conserative with stock valuations being high by raising my allocation to cash and bonds and lowering my allocation to stocks. Within my stock allocation I'll also go more defensive by holding more of the traditional defensive sectors such as utilities, health care and consumer staples. In addition, my reit fund is doing well so I've been adding to it. Currently, I'm more towards
15% in my cash area and moving towards 20% ... in my income area I'm more towards 35% and moving towards 40% ... and, in my growth & income area I more towards 35% and staying there ... and, in my growth area I more toward
15% and reducing.
last one (I promise)-buying EM I believe America will face a recession within 1-2 year and it wiil be severe one after 10 years of bull market. Based on previous experience EM and China will not be doing well at that time. It makes sense to postpone buying EM till after the recession.
last one (I promise)-buying EM
last one (I promise)-buying EM I am also wondering what people thoughts are about buying EM funds right now (I own both Seafarer Growth/income and Value funds). This is based on GMO recommendations (same GMO folks who were wrong about seeing a bubble when S&P reached 1500 a while back) and Research Affiliates (Rob Arnott). According to Mr. Foster (who I believe is a genuine person), one should be investing in China if one has a 20 year investment window. In addition, Mr. Foster recommends buying more if a China downturn takes place. At this point, everyone and their mother is aware of China's debt issues. Also I may have read somewhere that Munger (who is in his 90s) is overweight EM. I realize issues with currency risk,... but I am a fan of buying assets when they are on sale. Wondering if others are pursuing this strategy (Mr. Bogle is probably not with his US focus).
sorry one more question-buying funds with large percentage of cash Hi all, One more question. Sorry. At this point in my life, I am more worried about downside protection vs. upside. As a result, I own the following funds with large allocation to cash: FPA Crescent, FPA International value, IVA worldwide, Pinnacle value, Artisan international value and Fairholme (please don't laugh). Yes, I am (and have been) overweight value which has not paid off in the past 9 years (just an FYI, not a complaint). In addition to the above reason, I bought these funds as I turned cautious on the market when the S&P hit 1500 a while ago and Mr. Grantham (GMO) warned of a bubble (boy was Mr. Grantham WRONG/EARLY as the S&P went ahead and almost doubled). Here is my question. On the one hand these funds could let you sleep at night. However, that comes at a price (sometimes heavy price) as they all charge fees above 1% (1.44% in the case of pinnacle value). Sometimes I wonder if it is better to sit in cash instead. Although I am hoping that the managers can buy at the right price in the case of a downturn (no guarantees). Wondering what your thoughts are. In hindsight, now might be a good time to pile in these funds (not a few years ago).
Is The Stock Market Open On Veterans Day 2018? Hi
@MarkReminds of a company I worked for, for a number of years. The company always observed Columbus Day as a paid holiday, but not Veteran's Day. Over 4 different years I submitted a paper request to change this policy going forward. My last request became totally to the absurd side of life in a final attempt to attach more attention to the situation ....."As there are more military veterans, versus those of Italian heritage; among the
1,000's of employees, I humbly request that this holiday observance day be changed."
'Course, the change never took place.
Take care,
Catch
Is The Stock Market Open On Veterans Day 2018?
Barry Ritholtz: Why You Should Stick With `Buy And Hold’
The Breakfast Briefing: U.S. Stocks Open Lower After Fed Says It Sees ‘Further Increased Rates Folks, from my perspective, as the FOMC continues its march with its rate increase program I'm thinking this will present greater headwinds for stocks. I'm thinking the 4th quarter of this year is a good time, for me, to start making the transation and move some of my equity money found in the growth areas of my portolio by moving it left into more conserative type securities. Most of the money moved will go into the cash and income areas of my portfolio with a little into the growth & income area. Now that the US 10 yr is yielding about 3.2% and the US 2 yr is yielding about 3% makes it more attractive, to me, for investment. I'm also thinking, in the nearterm, its time for stocks to start tumbling. Perhaps, as early as next year as rates become a little higher and earnings start to soften.
Preferred Bond Funds Since, I am in the process of moving some of my equity money found in the growth area of my portfolio towards funds that generate a good income stream I have PFANX under buy review along with INUTX. These two funds will be additions and held, if purchased, in the growth & income area of my portfolio. PFANX will be held in the global hybrid sleeve while INUTX will be held in the domestic equity sleeve. This will increase each of these sleeves from three funds to four with the new funds being minor positions with about a 5% to 10% starting weighting within their respective sleeves. I plan to increase new positions over time thur a position cost average approach.
