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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Alternatives to Low Yielding Bond Funds

    Thanks, JD, for sharing.
    Never considered using options-based funds. But, after a quick review, both SWAN & DRSK look quite promising. Need to do more DD, of course.
    Thanks, again.
    Fred
    After doing some research, I came across JHQAX, a fund that has successfully employed an options strategy for the past seven years. M*'s last fund analysis report says that:
    "Attractive fees, a transparent and consistent process, and an experienced manager elevate JPMorgan Hedged Equity ahead of its peers. The strategy maintains a Morningstar Analyst Rating of Silver for its cheapest share classes."
    The fund has a standard deviation of 7.94%, a Sortino ratio of 1.41, and a 5-year total return of 10.3%. JHQAX is available at Fidelity with NTF and load waived. Min. initial investment is $1,000.
    I may consider matching JHQAX with DRSK which also has an excellent but very short record.
    Fred
  • But there's no inflation...
    He lost me at the first minute, where he says that twice the product (a television 2x the size of a CRT screen) at 16% less ($500 vs. $600) amounts to a 32% (2 x 16%) reduction in cost.
    Of course the reduction in cost is more than half, merely because you're getting twice the product. (You're paying 5/6 for twice the product, or 5/12 for the same amount of product, for a 58531;% reduction in cost.)
    Added note: a screen with twice the linear measurement offers 4x the viewing area (or at least it would if it still had the same 4:3 aspect ratio.)
    Then he says that you couldn't buy a car with airbags in 1973. Wrong. GM sold production cars with its "Air Cushion Restraint System" to retail consumers in 1973. And that 1973 Honda Civic? 40 MPG (highway). Of course that was with no catalytic converter and leaded gasoline.
    Never let bad arithmetic, misleading data and false "facts" get in the way of a good story.
  • Roundhill Pro Sports, Media & Apparel ETF in registration
    @Derf,
    don't get me wrong, I'm not a gamer, don't know too much about it myself...will state that my last role in the corporate world, I worked with many folks in their early to mid-20's....wow, it was kinda culture shock for me as in many cases I was older than their parents but I always kept an open mind and both them and I appreciated it...had many entertaining conversations/observations.
    One talented nice guy nearly made it as a professional gamer, oh so close, told me he was washed up at 25 years young, reflexes are already too slow at that age, huh?
    Take care of you and yours,
    Baseball Fan
  • Perpetual Buy/Sell/Why Thread
    Stop the crazy meaning everything...who in their right mind thought you could just waltz into the Capital and not learn the meaning of consequences...who thought we would have a break down in law and order...(I see where Macy's just announced pull out of Water Tower Place on Mag Mile, Chicago after being there 45 years...can you say no more looters and thugs in our stores please...ah but the tax monies!)...defund the police, crazy...police not letting up off a subdued suspect's neck, crazy...Tesla...Bitcoin....asset bubbles....folks thinking the virus is fake...
    Honestly, I told the wife the other day...I don't know what to think anymore...
    Here's to a saner, safer, more rational world and good health and good luck to all in 2021!
    Baseball Fan
  • But there's no inflation...
    Here's what Russ Roberts misses. First you didn't need a college education to work at a well-paying job in 1973: for example UAW members at GM, Ford and Chrysler, or the multitude of union jobs at the auto suppliers. Second, college tuition has risen at 2.5 times the rate of inflation since the late 1970's:(tuition only) 1973 TOSU(their name!) $720 per year, 2019 $11,804. Monsieur Roberts employer Stanford University :1973 $3,135, 2019 $53,529. So unaffordable college tuition negates some of these "improvements" Roberts crows about !
  • Well isn't this special........D.C.
    +1. Gotcha.
    @Crash, #25 and #14 take time to exercise and there is less than 14 days left. If he has the decency, he should just leave NOW just like Richard Nixon. Nixon was told he has lost all support and was about to be impeached and remove from office. He resigned the next day according the Washington Post’s Bob Woodward and Carl Bernstein in their book “The Final Days.”

    Since the current president still has some support, I don't think it's possible to remove him by invoking the 14th or 25th amendements. Unfortunately, this man lacks a moral compass and will never resign for the good of the country.

    And what does it tell us--- that, as you say, the Orange One still has support. The rot is not concentrated, it's widespread. The sort of "hardball," amoral politics we're seeing dates from the days of Gingrich the Newt. It's been a long time growing and spreading its toxicity.
    The Presbyterian Church-USA has a rule book with a silly name: "The Book of Order." Sounds like something out of Monty Python. But in it, there is a savvy assertion made right from the start. It says that the whole interior system of the PC-USA cannot function without
    mutual trust and a spirit of goodwill. THAT is what's pretty much gone from the Repugnant Party today. Or maybe it's not just gone. Maybe it FLED.
  • Well isn't this special........D.C.
    That is a good one - moral compass! Trump never has one as his niece, Mary pointed out in her book. The only things he worships is money and power.
    Pence does not want to invoked 25th amendment. Article of impeachment takes time for voting. But he has access to the nuclear arms and that can be very dangerous for the country.
  • Perpetual Buy/Sell/Why Thread
    Added to existing positions in
    Vlsax, virtus kar long short
    Tmsrx, t rowe multi
    Arttx, artisan focus
    Pvcmx, palm valley
    New position
    Trgvx, t rowe global value equity
    Reduced
    Iqdax, q infinity,. Got scared. Too black boxey for me at larger position
    Hold
    Rosox, tonsure overseas
    Tbills and 5 year CD s
    Good luck and good health to all
    Stop the crazy
    Baseball Fan
  • Well isn't this special........D.C.
    @Crash, #25 and #14 take time to exercise and there is less than 14 days left. If he has the decency, he should just leave NOW just like Richard Nixon. Nixon was told he has lost all support and was about to be impeached and remove from office. He resigned the next day according the Washington Post’s Bob Woodward and Carl Bernstein in their book “The Final Days.”

    Since the current president still has some support, I don't think it's possible to remove him by invoking the 14th or 25th amendements. Unfortunately, this man lacks a moral compass and will never resign for the good of the country.
  • Roundhill Pro Sports, Media & Apparel ETF in registration
    Good Morning @Derf,
    Ha! Like your commentary!
    FWIW,
    ECD Company plans to build an esports arena in Chicago’s Near South Side, according to The Esports Observer.
    Scott Greenberg, the president and CEO of ECD and SMASHotels, is focusing on turning the property at 2500 S. Wabash Ave. into a 106,000 square-foot venue that could hold 800 spectators. It would also be equipped with three kitchens to serve food and beverages.
    On another note....According to a recent report by Newzoo senior market analyst Tom Wijman, the global gaming market will generate $159.3 billion in revenue in 2020. That would be 9.3 percent year-over-year growth. What’s more, Newzoo projects the industry to surpass $200 billion in revenue in 2023
    For comparison sakes, US Movie and production revenue in 2019, ~ $35B
    Mucho Grande business, this Activision, Take Two Interactive, Electronic Arts, Nintendo, Microsoft...
    On another note, Fanatics, currently valued at ~$6.5B, likely going to IPO
    Best,
    Baseball_Fan
  • Well isn't this special........D.C.
    So are you saying that if they had been successful in taking the vice president and members of the house and senate as hostages that the market wouldn't have reacted? I'll take two of whatever it is you're having.
    Sound like the movie "White House Down" with James Wood and the Vice President try to overtake the government.
    @Crash, #25 and #14 take time to exercise and there is less than 14 days left. If he has the decency, he should just leave NOW just like Richard Nixon. Nixon was told he has lost all support and was about to be impeached and remove from office. He resigned the next day according the Washington Post’s Bob Woodward and Carl Bernstein in their book “The Final Days.”
  • Matthews Asia Total Return Bond (fka Matthews Asia Strategic Income)
    Thanks @David for sharing this. Ive enjoyed your writeups on this fund over the last 5 years. A nice steady eddy consistent fund which is what I look for.
  • But there's no inflation...
    Pretty good reminder of what we have forgotten:
    inflation-truthers

    That video is Exhibit A in what Consumerism is, and why it's a bad way to live. Completely uncritical and accepting of the status quo. Don't think about what you're buying. Just buy it. Don't ask whether this purchase is a good idea, just buy it--- because everyone else is. Hoover Institution: conservative. Thus, he found a way to show how the middle class and the poor HAVE gotten richer over the years... That's a crazy statement that does not compute. Of course, he sounds very matter of fact and reasonable in his presentation. I'm the radical Lefty, ya. So move on, and don't listen to a word I might have to say.
    Sorry, bee. I'm sure you offered us that video in a very different vein.
  • Well isn't this special........D.C.
    #25. #14. Censure. Impeach. All of the above. Some are "surprised" that this President could do such a thing? Shit, I saw all of what's been happening during the campaign in 2015. And any NYer who was paying attention, where he was constantly in the news, a celebrity, should have seen it, too. Just ask his SISTER and niece.
  • Stimulus checks
    Short answer: the credit is what it is; you get to keep it all.
    You don't have to pay back your stimulus check, because it's a refundable tax credit
    Your stimulus payment is technically a refundable tax credit, which reduces your 2020 tax bill on a dollar-for-dollar basis. It's like having store credit at your favorite clothing shop: When you apply it to your total bill, it reduces what you owe. In this case, even if you have no tax liability, the government is "refunding" your credit back to you as a cash payment.
    https://www.businessinsider.com/personal-finance/will-we-have-to-pay-back-stimulus-check-2020-4
    What Is a Tax Credit?
    Subtract tax credits from the amount of tax you owe. There are two types of tax credits:
    • A nonrefundable tax credit means you get a refund only up to the amount you owe.
    • A refundable tax credit means you get a refund, even if it's more than what you owe.
    https://www.irs.gov/credits-deductions-for-individuals
    If it's a gift, it's a per capita gift that nearly everyone (84%) gets. It's a gift like Medicare Part B, where most (92%) participants pay only 1/4 of the true cost and they are gifted the other 3/4 out of general tax revenue (see Medicare Financial Status: In Brief, p. 5, pdf p. 7).
  • Roundhill Pro Sports, Media & Apparel ETF in registration
    Ah, Prof Snowball.. nonsense it might be but I was telling folks 15 years ago that
    . We'd be letting criminals out of prison cause we can't afford to keep them there
    . We'd legalize the weed cause we need the tax monies
    . We'd be wearing six shooters on our hips cause of all the crime
    . We'd be seeing youngsters skip out on school loan debt..too excessive, expensive
    . We'd be seeing legalized sports gambling cause we need the tax monies
    Now me thinks we're going to see prostitution legalized within four years. And. We will see gaming be the next sports arena slash investing platform similar to horse racing etc
    Check it. I believe in chicago they are building a mini arena just to watch live gaming seating for a few thousand
    C'mon prof. You're around the young Turks and I believe you have a young son... different times for sure...
    Best regards to all
    Baseball Fan
  • Matthews Asia Total Return Bond (fka Matthews Asia Strategic Income)
    Hi, guys.
    Two quick notes.
    (1) Teresa Kong, the manager, projects high single- to low-double digit returns in 2021.
    We think EM corporates will outperform EM sovereign credits ... EM investors are still largely invested in EM sovereigns, not EM corporates. The EM hard currency corporate market is dominated by Asian issuers, of which more than half are China issuers. Given the V-shaped recovery of China and the positive spillovers onto much of the region, we expect Asia to outperform other EM regions. We also expect Asian corporates to outperform corporates from all other EM regions. When you take into account a yield of about 7.4% in Asia high yield, with help of some credit spread tightening, we are looking at returns of high single digits to 10% next year.
    Corporate Emerging Market Debt Poised to Shine in 2021 (12/15/2020)
    (2) Ms. Kong is pretty good at her job. I did a quick check at MFO Premium and she's pretty much consistently above average for returns, downside, and risk-adjusted returns. Typically, mid-single digit annual returns. The fund has an R-squared of just 6 against the US bond market and 40-ish against US equities, which likely reflects their corporate bond orientation.
    I've owned the fund since launch as a diversifying holding in my fixed income sleeve; T. Rowe Price Spectrum Income is the other fund in that box for me. That's not particularly an argument that the fund (a) is great or (b) makes sense for you, but a potential 9 or 10% fixed-income return has some attraction.
    As ever,
    David