Mechanics of Buying & Selling 5-Yr TIPS With the preface, that I am a novice at TIPs, having thought them overpriced for so many years. --- so please pardon the following questions... I am dipping my toe in them now (via ETFs), since the general sell-off in bonds.
1.What is the rationale to buy individual TIPs vs an ETF. -- And especially VTIP, which holds short-term TIPs? any reason other than one has a finite duration instrument when buying the bond directly?
2. As I look at Fidelity's list of 2ndary-market TIPs, it appears shorter-term TIPs are still priced high with negative real-yields, while longer-term TIPs do have a modest (meager) posiitve real-yield. -- So why not go for longer-duration, especially, since the inflation-adjustment feature should serve as a mitigant to the longer duration?
3. More generally, as regards constructing the Treasury sleeve of one's portfolio, mightn't it make sense to populate the longer-duration portion of one's holdings with TIPs, rather than nominal bonds? --This would serve to protect one's buying power in the "outer years". And because TIPs are still risk-free (i.e. issued by Uncle Sam), they still seem to benefit from a flight to quality during risk-off periods. - I guess my point is if one is going to own ANY longer-duration Treasurys here, wouldn't TIPs have the edge over nominal bonds?
Thanks in advance for sharing your thoughts/comments on the above.
M* Interactive Charting AWOL?
EV’s & Where to Invest for the next 10 years LEV single stock. Lion Electric. Saint-Jerome, Quebec, northwest of Montreal. Still operates at a loss. Electric vehicles, but not so much for individual retail consumers.
At Barron's website, it gets 4
buys,
1 overweight, 4
holds by analysts. Will it EVER make a profit? It's a penny-stock, still--- at $5.34 USD.
12 months: DOWN -74.65%. Bargain, or trap?
https://thelionelectric.com/en
EV’s & Where to Invest for the next 10 years Look at REMX and GEMT
Focused on rare earths needed for a lot of technology ( and basically owned by China) and "green metals needed in EVs
LIT has been around since 2010 and is more liquid and more transparent than EVMT
Only 3% TSLA. A good thing, if you believe, as I do, that TSLA is controlled by a sociopath.
Mechanics of Buying & Selling 5-Yr TIPS
OIL
EPD
EPD What is negative with EPD? Something to do with the fund?
-
EPD the stock is a limited partnership with energy holdings and it is positive for the year.
- Since your question refers to
“fund”, most likely you mean
EPDIX, the mutual fund, which invests in European dividend paying stocks …
The second is up about 8% this year, but fell about
1% Friday. Since the fund owns dividend paying
stocks a
1% drop for one day is entirely normal. Unlike income paying
bonds, or
mixed allocation funds, dividend paying
stocks are normally riskier and more volatile.
@ron - Members are here to help you if you need some direction. It all depends on your age, purpose in investing and your willingness / ability to accept potential losses over shorter periods in pursuit of potentially greater longer term gains.
OIL Nat Gas 3/15/21 = $4.57, now $8.96. Waiting winter storage season.
Changes (Finally) Coming to Taxable SS Calc? That page is not substantially different from the 2020 report where the Section H options were likewise numbered H2-H7, and generally the only difference was that the years for implementation were one year sooner. See p. 3
1 (pdf p. 32):
https://www.ssa.gov/OACT/solvency/provisions_tr2020/summary.pdfAs I wrote above, nothing new to see here, move along. Just the same "news" pieces trotted out as though they were reporting on new proposals.
I suspect that if you go back year by year, you'll see very little different in the proposals aside from the dates. Here's where you can find earlier years:
https://www.ssa.gov/OACT/solvency/provisions/
OIL
Changes (Finally) Coming to Taxable SS Calc?
Crypto firms say thousands of digital currencies will collapse, compare market to early dotcom days There are more than 19,000 crytocurrencies in existence because people spun a good story about crypto and we were awash in "easy money." Cryptocurrencies don't have any earnings and pay no dividends.
Crypto prices are notoriously volatile and security risks subject investors to potential losses from hacks or fraud.
Investing in this space amounts to pure speculation (which may be ok if you understand the risks).
Unless you engage in illicit activities or reside in a country with a history of hyperinflation
(e.g., Venezuela, Zimbabawe), I don't find crypto beneficial ¹.
¹ However, blockchain technology is undoubtedly useful.
EV’s & Where to Invest for the next 10 years Those are good ideas,
@JonGaltill. It appears the ETF industry is thinking along the same lines. A quick search brought up WBAT and EVMT, the latter just launched in April. Given the uncertainty of what materials will be most in demand over a ten-year period, it seems a fund might be the ticket. EVMT is following in the steps of PDBC, by offering a K-
1 free fund. I’m sure there are other related thematic funds out there that members may identify.
M* Changes in Classification of Some Multi-Asset Funds
Tax reporting on balanced and bond funds
Multi-Asset Income Funds: Is the Extra Income Worth the Extra Risk? msf said:
"A bet on higher yield may pay off nine years or out of ten, or even better, but that just means that when 00 comes up, the impact is likely to be more severe. IOFIX, SEMMX and their brethren were never "cash subs", regardless of how sedate they looked before 2020."
IOFIX and SEMMX were touted as "cash subs" by some participants on another investing board.
This was before IOFIX lost 36.18% and SEMMX lost 20.85% in Q1 2020¹.
¹ returns reported by Morningstar
