FYI: When it comes to selecting investment managers, the advisors at Litman Gregory are seen as among the most serious thinkers in the RIA space. For decades, they produced research in a newsletter called The No-Load Fund Analyst, now LitmanGregory Advisor Intelligence, which rivaled Morningstar for its depth if not its breadth.
Since 1996, the firm has been packaging high-conviction ideas from the best managers they can find into a series of multi-manager strategy funds they call the Masters funds. Managers include names like Bill Nygren, Chris Davis, Jeffrey Gundlach, Matt Eagan and David Herro.
Regards,
Ted
https://www.fa-mag.com/news/here-is-a-serious-income-alternative-to-high-yield-41770.html?print
Litman Gregory Masters High Income Alternatives Fund:
http://mastersfunds.com/high-income-alternatives
M* LItman Gregory Masters Funds:
http://quicktake.morningstar.com/fundfamily/litman-gregory-masters-funds/0C000090TJ/fund-list.aspx

"Since 1946, there have been 18 midterm elections. Stocks were higher 12 months after every single one. Every single one. That’s 18 for 18."
Duh? That probably simply means that the approach of an election brings about uncertainty (pretty much the definition of election). Markets don't like uncertainty. I don't like uncertainty.
18 out of 18? I'd prefer at least 25/25 before I'd bet the ranch.

https://www.mysanantonio.com/business/local/article/USAA-selling-investment-management-company-to-13367930.php
San Antonio-based USAA announced it’s selling its investment-management business to Ohio-based Victory Capital Holdings Inc. for at least $850 million.

FYI: Tuesday is going to be a crucial day for the stock market. Are you prepared?
If the polls are correct, President Donald Trump and the Republicans are in big trouble. There’s an 86% chance Democrats will seize control of the House of Representatives, according to statistical-analysis firm FiveThirtyEight.
This is causing big-time anxiety for investors who’ve enjoyed the 28% stock market rally since Trump took office. No matter what you think of Trump, his reign as president has been great for stocks. But as the election has drawn closer, the market has fallen apart.
The S&P 500 closed out October with a 7% monthly drop, nearly its worst month since the financial crisis. So what could happen this month—and the months ahead?
Few topics stir emotion in America like politics. Many perfectly reasonable people lose the ability to think straight when they hear the name “Trump.” As I always said at RiskHedge, politics and investing don’t mix. Investor Warren Buffett often says: “If you mix politics and investing, you’re making a big mistake.”
Regards,
Ted
https://www.barrons.com/articles/whats-happened-to-the-stock-market-after-every-midterm-election-since-world-war-ii-1541523813?mod=hp_DAY_3

I wonder if article was written before the correction in October. Small caps we’re outperforming through September but have faltered badly over the past few months.

It's dated Nov 1, last Thursday. Maybe the assignment goes back to before the selloff, and there was an editing/publishing delay. Otherwise, it is odd timing.

@Ted said: "Social Responsibility No Longer a 'Niche.'"
DITTO.
https://www.nytimes.com/2018/11/05/us/politics/nbc-caravan-advertisement.html

Dimensional Funds - DFA -
https://my.dimensional.com/tools/materials/50298/
https://my.dimensional.com/local/us/files/Distribution Estimates - 2018.pdf

Here you go! Also they tied the knot.
https://humbledollar.com/2018/11/merging-money/

+1.

FYI: After years of underperforming large company stocks, small companies and mid-caps have made a comeback this year. And Lamar Villere, who co-manages the Villere Balanced Fund, thinks the stage is set for these smaller names to assume a market leadership position in the years to come.
Regards,
Ted
https://www.fa-mag.com/news/the-next-act-for-small-caps-41495.html?print
M* Snapshot VILLX:
https://www.morningstar.com/funds/XNAS/VILLX/quote.html
Lipper Snapshot VILLX:
https://www.marketwatch.com/investing/fund/villx
VILLX Is Ranked #22 In The (A70/85E) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/allocation-70-to-85-equity/villere-balanced-fund/villx

FYI: Kathleen tied the again—at age 71. Four years into widowhood, I met Charlie online. Also widowed, he and I began dating cautiously, each respectful of our late spouses and those marriages, as well as our adult children and grandchildren.
Regards,
Ted

FYI: As most advisors know, U.S. sustainable investing has grown dramatically, up 38% since 2016 in the U.S. to make up 26% of the $46.6 trillion in U.S. assets under management, according to the U.S. Sustainable Investment Foundation’s 2018 report on Sustainable, Responsible and Impact Investing Trends. Since 1995, when US SIF first started keeping tabs, socially responsible assets have had a 13.6% compounded annual growth rate.
Regards,
Ted
https://www.thinkadvisor.com/2018/11/02/social-responsibility-no-longer-a-niche/

@crash
I was expecting a nice gain for PRWCX that day as well and was even in denial for awhile that evening thinking the NAV had not been updated yet. :) Once reality set in I took comfort in knowing how much PRWCX had killed it over the past 12 years of our being shareholders of the fund. Every actively managed fund will have a day where it is out of step with the market. Otherwise, it's an index fund.

@Sven: Glad you coupled the public and private IRS changes for next year. I should have mentioned that fact and referred to the article I linked last week.
Regards,
Ted :)
https://www.mutualfundobserver.com/discuss/discussion/44983/taxpayers-can-put-more-into-retirement-accounts-in-2019-irs-says#latest

The increase affect the private sector as well and the limits are governed by the Internal Revenue Service.
https://forbes.com/sites/ashleaebeling/2018/11/01/irs-announces-2019-retirement-plan-contribution-limits-for-401ks-and-more/#2b6930c6776c

FYI: The standard limit on investments will rise from $18,500 to $19,000 in 2019 in the Thrift Savings Plan for federal employees along with similar retirement savings plans such as 401(k)s, the Internal Revenue Service announced Thursday.
A separate limit on “catch-up contributions” allowed for those ages 50 and older, meanwhile, will remain $6,000.
Almost all federal employees have a TSP account, because one is established automatically for everyone hired into the Federal Employees Retirement System, which applies to those hired since 1983.
Of the nearly 2.6 million — including U.S. Postal Service workers — under that retirement program, nearly 180,000, about 7 percent, hit the investment maximum in 2017 of $18,000, TSP figures show. Of those, 122,000 were 50 or older, and of that group, nearly 79,000 invested the additional maximum $6,000.
Regards,
Ted
https://www.washingtonpost.com/politics/2018/11/02/tsp-investment-limit-increase/?utm_term=.2ad242d7c75b

Hi @AndyJ
Thank you for the reference (St. Louis Fed.), and @David_Snowball for the Leuthold "info" and posting same.
The "liquidity" .................an area I attempt to ascertain and distinguish from other items within the financial world.
We investors live within a financial world; were aside from a boatload of money sloshing about in places known and unknown to us; must also have a full faith in the system that the quality of money between/among parties does not fall apart and become a problem of liquidity. My "investors" reference is not just related to the folks here; but must also include most of the big kids, too. They are subject to having their investment pants pulled down, too.
The full faith in the system is very critical, IMHO; and as we have witnessed in the past, can develop flaws and cracks from real reasons which then may begin a massive lost of faith that monetary functions can be maintained in some form of civil fashion and not cause great stress to the system.
Indebtedness is global; but relative to this country, as you noted; the debt piles are so large from a corporate measure, and the debt pile continues down into the public sector.
One example, the auto companies, in their advertising; do everything possible to pull in the "sub-prime" customer. Hey, folks; we can help you afford that $55k truck you're wanting. Okay, this will end well, eh? Too many in our society have no mental discipline for a budget and the spending involved with same. A recent report indicates the following for the regular folks:
---average American credit card debt = $6,375, average household = $17,000 and average annual credit card interest = $1,300.
None of this bodes well at some point down the road.
I continue to watch the bond side of money for cracks in the system, as I feel this could be the problem area that places cracks into the equity side.
Sadly, I/we are running out of time at this household; as we've been at this investment party for 40 years. We got "lucky" leaving the party early in 2008 while there were still chairs available before the music stopped. I'm not so sure we can be "lucky" twice in such a short time frame.
The rough part will be leaving a passion and breaking a habit; as well as deciding where to park the money in a hands off mode.
Lastly, @AndyJ ; have you anything else in particular that you watch for cracks and stress in the world of bonds and debt? Any reference links would be most appreciated. Thank you.
Take care,
Catch

Hey Crash, ignore the subtext and focus on Mike's suggestion. Anytime you wonder about a fund's performance vs. the market, first order of biz is to look at individual holdings. Also, sector concentrations can sometimes help suss out the differences.
On holdings, M* shows the top 25 on the Portfolio/Holdings pages (the top 100 if you pay the premium). The Equity View tab shows YTD gains/losses of each one, and the Equity Prices tab shows that day's results. Here's PRWCX.

FYI: Maybe investors should question the dogma of “stocks for the long run.” History shows that a portfolio of bonds has outperformed stocks surprisingly often and for shockingly long periods.
That’s the intriguing argument in a new research paper by Edward McQuarrie, a retired business professor at Santa Clara University. Investors have long taken it as an article of faith that stocks have always beaten bonds—and always will—if you can just hang on long enough. Prof. McQuarrie’s research is a healthy reminder that this belief is wrong. His findings also show the limits and dangers of extrapolating from the past.
Regards,
Ted
https://www.wsj.com/articles/sometimes-its-bonds-for-the-long-run-1541176880?mod=searchresults&page=1&pos=1
Annual Returns on Stock, T.Bonds and T.Bills: 1928 - Current:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html

FYI: While stock and bond market volatility has buffeted most investors in 2018, some shrewd global macro managers are posting stellar numbers this year. For instance, Jeffrey Talpins’ $17.5 billion Element Capital Fund has soared 25% through the first three quarters. Said Haidar’s $428 million Haidar Jupiter Fund is up nearly 25% in that time. And Nigol Koulajian’s $1.5 billion AlphaQuest Original program has gained 17%. All of these managers already hold strong long-term track records.
Regards,
Ted
https://www.barrons.com/articles/global-macro-fund-returns-1541042960?mod=djem_b_Weekly barrons_daily_newsletter