@dtconroe: thanks for your very clearly expounded review of your situation and how your current portfolio evolved from something quite different from what you are holding/managing today. I had forgotten what you reported doing to your portfolio last year. I think you did exceedingly well to preserve your capital; wouldst that I had done the same instead of screwing around with the likes of REMIX. You could have a second career as a market timer!!
You are absolutely right to point out that individual circumstances vary so much that what one member may be doing can have little relevance to what another does. I can leave my TIAA portfolio for passive accumulation, the result of generous employer and my belated contributions over a 42-year career. Our Roths and joint brokerage accounts, OTOH, I can afford to manage as actively as I choose to, even at the age of 81. Our Honda Accord hybrid gets better mileage than what I get out of my hands-on approach to investing, if you don't mind a mixed metaphor. The Accord rarely offers thrilling acceleration while my occasional pedal-to-the-metal aggressive buys might produce squat. The Accord, however always provides a smooth ride.

@FD - Personal offense? None. But thanks. I appreciate the sentiment.
From your latest linked article - Why Average Investors Earn Below-Average Market Returns :
“Investor behavior is illogical and often based on emotion. That does not lead to wise long-term investing decisions.”
Yes. That’s pretty widely known and has been discussed here before. But it says nothing regarding your earlier (unsupported) assertion, “I have seen a lot more investors who lag the market when they own more funds, I mean over 5-7 funds.”
In addition to the obvious disconnect between what you asserted earlier and what your linked article says, let’s recognize a few relevant facts.
- “Average investors” includes all those with workplace defined contribution plans. That’s a lot of people who may have little or no investment interest or experience. And it includes all ages, from young adults buying their first home to folks with 50+ years investing experience. Lately, too, it has come to include the thrill-seeking “meme” crowd with little regard for fundamentals. All these and more fall within the realm of ”average investor”.
- “Average investors” don’t frequent investment forums like this one. Can’t speak for wherever else you’ve been, but this community represents a select slice of the investing public. Participants possess above average intelligence, are well read and highly motivated. Some have professional backgrounds in finance or financial journalism.
- To your initial assertion about number of funds … . I will contend that 8-10 high quality funds along the lines of PRWCX or JHQAX should perform as well on average as 1 or 2 equally high quality ones. The number of funds alone does not determine whether one “beats the index.” The overall quality of those holdings may.
- Indexes carry no cash reserve as funds do. So they have a built-in advantage actively managed portfolios do not possess.. “Tit-for-tat” active will underperform an index.
- Not all investors want to track or match the S&P’s performance. Some of us are pleased we didn’t lose 18% last year. We’ll sacrifice some future return if it means avoiding such dramatic 1-year losses.
- Your criticism of owning more than 5-7 funds misses the point that many investors manage several portfolios. I have a Roth, Traditional IRA, and Taxable account. Each is viewed in a different time-frame and tax perspective. Some have long-term portfolios, mid-range ones and short term investments for more immediate needs. Some manage for a spouse. Some have limited-option workplace plans - plus other outside investments.
Thanks for the linked article. But, since it contained nothing I didn’t already know, I checked the “not helpful” box at the end.

I am probably the worse investor at MFO. My ignorance/incompetence is, or should be, notorious. Yet I am among the "perfect". My before RMD is more than sufficient so RMD (before tax) amount gets reinvested. I have no debt. So far, at age 74, I am independent with a little help from the delivery guys who I compensate handsomely. So, yes, right now, I am perfect. But, maybe, not by anyone else's definition.

IMO there is no 'perfect' investing strategy or style. Everyone has their own tolerances, pain points, goals, and desires. I for one don't care if I keep pace with the SPX or 'only' make 9% per year while not worrying and still sleeping well at night. If I lose less than the SPX in a down period, I'll still sleep well even if I'm in the red for a bit. By contrast, some people (mainly institutions needing bragging rights and TV-trading retail traders) feel like failures if they don't track or beat the market and lie awake with each 2% down-wiggle in the index. Each to our own.
(I've said the same thing, or variants of this for years in active trading forums/chats ... there is no 'Holy Grail' technical indicator that's always perfect, just like there's no one investing strategy/tactic that works 100% of the time w/o losses.)
It's also why I don't like index funds. You track 'the market' but many times, like now, the 'market' returns are really only from the top 5-10 names. So if I was looking, I'd just own them and avoid the drag.

analysis
buying / buyer weakness
https://threadreaderapp.com/thread/1687834445259194368.html

I know Mr. Snowball is travelling overseas on vacation, but will there be an August Commentary?

Hank, I didn't say that I was an expert or that 15 years make me an expert. You made up these conclusions. I have been posting here for years and will keep posting, I never told anyone they are MISPLACED anywhere as you did.
I state my opinion, how about stating yours? Anytime you don't agree with my statement, you are welcome to do so with data and explanations.
Here is why most lag the SP500, one source (https://www.thebalancemoney.com/why-average-investors-earn-below-average-market-returns-2388519). There are many more.
Investment sites are for discussing different ideas and opinions without attacking anyone personally. If I offended you in any way, I apologize. Let me know.

FD - Please use quotation marks around or italicize my words when you quote them so readers know you’re quoting me. Thanks.
To your point … If hanging around discussion boards 15 years makes someone an expert, than over a dozen here, including myself, would qualify. You’re very good at making broad sweeping critical remarks about those you encounter on such sites. One is left to question your motive.
Regarding your previous assertion: “I have seen a lot more investors who lag the market when they own more funds, I mean over 5-7 funds.” One wonders why you don’t simply return to those other discussion boards you frequented for 15 years where you gleaned the data? You’re misplaced here because the data you profess to possess did not come from this board. As I said previously, the vast majority on this site are not inclined to post personal performance histories.

@dtconroe: I am intrigued by your explanation of how you use of CDs and their multiple maturity dates. I spend what some would probably call an excessive amount of my free time juggling MFs and ETFs. However, I did put $10K into a CD for the very first time a few months back. Most of my cash is in MM funds, namely SWVXX. Do you not spend any time on the equity side of your portfolio in favor of monitoring what appears to my inexperienced eye a complex operation devoted to CDs, ladders, and redemptions? For my part, I am content with the pretty generous yield on my MM stash, which allows me to buy and sell assets quickly and effortlessly, without worrying if I'm getting the last 1/10% out of the dough. FWIIW, I recall hearing it said about a stock trader in old days when stocks were priced in fractions that, "He'd sell his grandmother for an eighth." I guess I can accept my mileage varying a bit lest I become become too obsessive.

BenWP, I am 75 years old, devoted to preserving my accumulations with moderate TR, so my investments are relatively low risk now. Before retirement, I was very aggressive with a ton of Equity oriented holdings (Sector holdings, Value and Growth Equity Funds, some balanced funds, Global and International Equity holdings, etc.). After I retired, my investment emphasis changed dramatically to lower risk funds, focusing on Bond Oefs with low SD and solid momentum--my favorites were multisector and nontraditonal and HY bond oefs. In March of 2022, I sold everything, was totally in MMs, and started investing in CDs as my chosen option for risk management to produce guaranteed income. CDs require a special set of investing skills, and I chose to spread my cash around to multitude of CDs, in a short term laddering system. 90% of my CDs are in six figure CDs, but I do have a small number of 5 figure CDs. All of my CDs stay within the FDIC insured amounts, but my CD selections are more short term (2 years or less) with banks with high quality ratings. At 75, I don't have that many years left, have plenty of money to live comfortably, and have no interest in taking "unnecessary" risks, and am more focused on a retirement life, with minimal stress, and as much joy as I can muster.
I wish you well, but I suspect you are in a different life situation, with a different set of investing objectives!

M* has put VWEHX / VWEAX on review due to sudden manager change. The new manager has been an analyst for years, been a manager of an analyst group, but has no prior experience with fund management except for a short overlap with the departing manager.
Vanguard has also developed in-house bond capabilities. Its new multisector bond VMSIX / VMSAX is managed entirely in-house. So, it isn't surprising that a sleeve (about 1/3rd) of VWEHX / VWEAX is also managed internally.

Hank: Are you an investment professional? Where did you come by these individual’s performance histories? Must be from somewhere else. It’s quite rare for anyone here to ever post their annual returns. I don't.
FD: this is an observation after posting for over 15 years on several sites. I can't find where I posted my portfolio performance here.
Do professionals make more money than the SP500 over a long time frame? Bogle and Malkiel (Random Walk) proved it already decades ago that VOO/VTI beat most fund pros over a longer time.

To me, the point isn’t that CD yields can be marginally higher than money markets. It’s that interest rates will start dropping at some point, and then MM yields will drop quickly. With CDs, you can lock in high yields for as long as 10 years, and you will continue getting those yields even if interest rates drop (assuming you bought non-callable CDs).

+1
And with that in mind, bond funds will make a lot more money than CDs.
That's the beauty of owning MM on the way up, and owning bond funds when rates go down. After rates stabilize, CDs still will not be great. The idea is to make a lot more money (several %) on the big moves and disregard very small gains (0.2-0.4%) for several months with a lot more effort and gates.
So, how do you figure out the above? use the following ideas
1) Listen to the Fed chair, not the experts
2) Pay attention to CME FedWatch Tool(https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html). It tells in real time where rates will be in the next several months, it's OK to be late, never be too early.

To me, the point isn’t that CD yields can be marginally higher than money markets. It’s that interest rates will start dropping at some point, and then MM yields will drop quickly. With CDs, you can lock in high yields for as long as 10 years, and you will continue getting those yields even if interest rates drop (assuming you bought non-callable CDs).

Supplement Dated July 31, 2023, to the Prospectus and Summary Prospectus Dated May 25, 2023
Important Changes to Vanguard High-Yield Corporate Fund (the Fund)
Effective immediately, Michael L. Hong will no longer serve as a co-portfolio manager
of Wellington Management Company LLP’s (Wellington Management) portion of the Fund.
Elizabeth H. Shortsleeve will continue to manage Wellington Management’s portion of the Fund.
The Fund’s investment objective, strategies, and policies remain unchanged.
Link

old joe +1

@BenWP- it's really not all that complicated, at least the way that I do it-
• Take a guess at how long I might be still around. Say, hopefully, at least a couple of years.
• (Alternatively, determine a date when I might be needing cash for something.)
• Decide how much overall that I want to invest in CDs or Treasuries.
• OK, now I've got a reasonable horizon to think about.
• Take a look at Schwab or other brokerage, plug in the desired specs: duration, non-callable, desired interest.
   (There's a page for setting up the specs. I use Schwab here as an example, but I'm sure that other
    brokerages have a similar setup.)
• All of the banks listed will be FDIC insured.
• Generally speaking, in a market like this one, the longer out you look the less the interest rate will be.
• OK, now just buy CDs:
    • each one for whatever amount is comfortable for a single bank. (You're FDIC insured, but spread out
       the chance of problems.)
    • each one for a particular maturity-
            say maybe 3 mths, 6mths, 9, 12, 15, 18, 21, 24. etc. That's your "ladder".
• Now you've got an income stream with payments coming in predictably.
• Additionally, there'll also be interest coming in at various times, depending on the CD terms.
• OK, at 3 mths the first one matures. Then you decide whether to buy a new one or use the cash for
   something else. The interest rates available at that time may have increased or decreased.
• Etc. for the remaining maturities. The procedure is similar for short-term Treasuries.
• That's about it. If I can figure it out, I guarantee that can't be very hard!
(If you're FD, none of this is worth your time.)

@dtconroe: I am intrigued by your explanation of how you use of CDs and their multiple maturity dates. I spend what some would probably call an excessive amount of my free time juggling MFs and ETFs. However, I did put $10K into a CD for the very first time a few months back. Most of my cash is in MM funds, namely SWVXX. Do you not spend any time on the equity side of your portfolio in favor of monitoring what appears to my inexperienced eye a complex operation devoted to CDs, ladders, and redemptions? For my part, I am content with the pretty generous yield on my MM stash, which allows me to buy and sell assets quickly and effortlessly, without worrying if I'm getting the last 1/10% out of the dough. FWIIW, I recall hearing it said about a stock trader in old days when stocks were priced in fractions that, "He'd sell his grandmother for an eighth." I guess I can accept my mileage varying a bit lest I become become too obsessive.

Easy fix by the bosses, easier prevention
Too long but so eloquent

@hank. BF?

Benjamin Franklin (1706-1790)
On Humility …
- “Humility makes great men twice honourable “
- “To be humble to superiors is a duty, to equals courtesy, to inferiors nobleness”
- “If thou hast wit and learning, add to it wisdom and modesty.”
On money …
“If you would know the value of money, go and try to borrow some; he that goes a- borrowing goes a- sorrowing"
”Rather go to bed without dinner than to rise in debt”
“A Penny Saved Is a Penny Earned”
“He that is of the opinion money will do everything may well be suspected of doing everything for money”
Many of these proverbs appeared in Franklin’s Poor Richard’s Almanac.:
”The Almanack contained the calendar, weather, poems, sayings and astronomical and astrological information that a typical almanac of the period would contain. Franklin also included the occasional mathematical exercise, and the Almanack from 1750 features an early example of demographics. It is chiefly remembered, however, for being a repository of Franklin's aphorisms and proverbs, many of which live on in American English. These maxims typically counsel thrift and courtesy, with a dash of cynicism.” https://en.wikipedia.org/wiki/Poor_Richard's_Almanack

+1 old joe Maybe FD is short for Financial Demagogue or Dork !

@Old_Joe : thanks I needed that . +1