NOTE; back to the original format for this; so that new folks who visit this write, may know more about the reason(s) for the holdings.
Again, a thank you to all who post the links and also start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week.
NOTE: For those who visit MFO, this portfolio is designed for retirement, capital preservation and to stay ahead of inflation creep; if and when it returns. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around..... I won't attempt to add anything to the numerous posts of the past couple of weeks; as these have been a lot to chew upon and I will presume most folks here have read the posts. I will be most curious as to what words or lack of words are expressed by Mr. Bernanke at the Jackson Hole summit this next week. The Fed can still fiddle around with which duration Treasury bonds it chooses to help "adjust"; but their influence is limited by "all in the global market place" who really "decide" what the yields should be, associated to all other risk in the world markets. I can not speak for others here at MFO who I know also live in Michigan; but our portfolio and related thoughts about any forward growth in the U.S. economy is still tempered from many years ago (1985 ish) and viewing (then) the slow unwind of the manufacturing sector in this state. Not unlike other states with a variety of large and small industry; the unwind continued with the closing of the 1,000's of many small machine and parts vendor businesses. Of course, all of this small and large company unwind affected the many businesses that benefited from the highly paid employed. Many of these small business operations have been closed for years. Related to this; and something that still makes me point at the tv (beginning in Dec 2008 through yesterday, Aug 19) to tell them they don't "get it" are the commentators who continue to compare today to the recession period of the early 1980's. Friday, Aug 19; on Charlie Rose's program, a Mr. Ip (the Economist Magazine) stated that the economy came "roaring" back in 1982; after the various experiments with monetary policy. Well, YES; but that is not where the economy is today !!! The manufacturing/industrial/middle class base is NOT even similar to 1982. My thoughts to these folks, including Warren Buffett (a most fine and knowledgeable person); is that this comparision is totally invalid, and perhaps from whatever life experiences shaping their viewpoints along with too much time with "data" and too little time with the "real folks world" has perverted their thoughts and that they may be caught in the; "they don't know, that they don't know." This syndrome, among many other problems has and is a most apparent problem in DC. Someone/some folks are wrong about the state of the economy; and I hope it is not this house. OK, enough jabber from this fella today; as I have rambled enough through the past week in the threads here.
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh?
Hey, I probably forgot something; and hopefully the words make some sense.
Comments and questions always welcomed.
Good fortune to you, yours and the investments.
SELLs/BUYs THIS PAST WEEK:
Our holdings had a -.01% move this past week. And yes, we are satisfied with our risk adjusted returns YTD. If the portfolio can pull a +10 to 12% for the year; you will not hear any whining from this house. (This sentence was from an April write; and I/we suppose a +5% for the year may now look good, too !) Our portfolio is at - 2% from the high point in mid-July. Obviously, the cash and some bonds are supporting the loses in the equity/high yield/income bond sectors. I will still maintain, as noted several weeks ago here; that a -25% in any of the broad indexes may be as low as the hedge funds, big traders and the machines may be able to tolerate; before buying again. Some sectors have already hit or are near the - 25% pull back. I can envision the "algos" set in the machines for the - 25% BUY signal. We continue to hold our equity positions, as the % vs the overall portfolio totals is low enough to not completely kill our monies invested; and any loss taken now with a sell; may be selling near a short term bottom. We may, however; sell into a short term equity rally. I/we, at this house; are surely not in a postion to "guess" where the equity markets are headed at this time.
Good investment fortune to all in the coming months.
The old Funds Boat may make 5% or 25% this year. I expect some rough waters, changing winds and opposing currents; causing the most serious attention being given to a firm hand upon the rudder control. (April report text)
The immediate below % of holdings are only determined by a "fund" name, NO M* profile this week
CASH = 8.3%
Mixed bond funds = 81.8%
Equity funds = 9.9%
-Investment grade bond funds 18.6%
-Diversified bond funds 18.5%
-HY/HI bond funds 25.8%
-Total bond funds 14.6%
-Foreign EM/debt bond funds 4.3%
-U.S./Int'l equity/speciality funds 9.9%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX Fed High Income
DIHYX TransAmerica HY
DHOAX Delaware HY (front load waived)
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
APOIX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
TEGBX Templeton Global (load waived)
LSBDX Loomis Sayles
---Speciality Funds (sectors or mixed allocation)
FCVSX Fidelity Convertible Securities (bond/equity mix)
FRIFX Fidelity Real Estate Income (bond/equity mix)
FSAVX Fidelity Select Auto
FFGCX Fidelity Global Commodity
FDLSX Fidelity Select Leisure
FSAGX Fidelity Select Precious Metals
RNCOX RiverNorth Core Opportunity (bond/equity)
CAMAX Cambiar Aggressive Value
FDVLX Fidelity Value
FSLVX Fidelity Lg. Cap Value
FLPSX Fidelity Low Price Stock