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Morningstar Digest July 17 top story is about politics and the markets,,,, Is that OK to talk about
The early period starting in 2006, for several years was the main contribution period into the account. With the equity market melt in 2008 and not really getting back to 'even' for about 4 years is when we continued to make contributions; and buying 'low' pricing. A benefit of dollar cost averaging. And, yes; a few periods were 'hang on'. But, for the full period, 7.65% is definitely acceptable.
'Course the intention of a 529 being for education, the monies are tax sheltered; and with the new regs from Secure Act 2.0; if guidelines are met, up to $35,000 of the open 529 may be transferred ($7,000 max/year) to a Roth IRA of the beneficiary 'without' any tax implications.
State tax deductions from taxable income are also available to whom contributes to the account. Taxation is in place if the account balance is liquidated in total; but the account may be transferred to another beneficiary without taxation. Taxation is only on the earning of the account, and not upon the contributions.
Hi Catch - I didn’t mean to fault the Boggle sounding approach. Fine up until a certain age. Good old DCA … It helped many of us grow out portfolios. However, at 80 or 85 years of age, dollar cost averaging takes on a different meaning as you “average out” of your investments.
First, where’s the link to the article? I don’t see it. Did I miss it?
Second, most investors should ignore politics, headlines, and constant media noise. You don’t invest based on emotion or ideology—you invest based on your financial goals and what the markets are actually doing. That part is simple.
I’ve shared my thoughts. Earlier in the year Value, International, and CEFs (like PDI). After the bear market bounce in mid-April, US Large Cap tilting Growth (VOO, QQQ).
With my own portfolio and not recommended to anyone. I never diversify since 1990. I’ve always focused on top-performing wide-range categories with strong risk/reward profiles. I’m a trader and a timer—used to own a very high percentage in stock funds, but since retirement, I mostly own bond OEFs.
Examples: I sold PIMIX in Jan 2018 and never looked back. I closely track Crossbridge funds. In 2024, I used HOSIX, CLOZ, and CBYYX for the first time ever. In 2025, I allocated a huge percentage to international bonds—also a first—and I lightened up lately. I don’t forecast—I just follow the data and what the market is showing.
Constant complaining and trashing others doesn’t help anyone get better results.
- ”Second, most investors should ignore politics, headlines, and constant media noise. You don’t invest based on emotion or ideology—you invest based on your financial goals and what the markets are actually doing”.
I think the majority here would agree that noise and hysteria don’t make for smart decision making. I think @LarryB’s point was that the political climate has turned more “chaotic” and some of Trump’s recent moves like threatening to fire the Federal Reserve Chair do “spill over” into investing. Such a departure from past norms may affect interest rates, inflation, confidence in the dollar and alter how global investors perceive the U.S. A nation’s political stability / instability may have a place in one’s investment decisions along with all the other factors. That’s the point he was making.
- ”I’ve shared my thoughts. Earlier in the year Value, International, and CEFs (like PDI). After the bear market bounce in mid-April, US Large Cap tilting Growth (VOO, QQQ).”
Thanks for sharing your insights. I think value is a safer long term play than a lot of what is appreciating now. I’d add that small and mid-cap are probably fairer valued now.
- ”With my own portfolio and not recommended to anyone. I never diversify since 1990. I’ve always focused on top-performing wide-range categories with strong risk/reward profiles. I’m a trader and a timer—used to own a very high percentage in stock funds, but since retirement, I mostly own bond OEFs”.
Your grammar here may cause confusion for some. It sounds like you have recently cut back on timing and trading with age and now invest mainly in bond funds. I’ve never been a trader or timer. I’m culling risk now as I near 80. Risk is fine if you have a long term horizon and can ride out downturns or add to your holdings when they head south,
- ”Constant complaining and trashing others doesn’t help anyone get better results”.
Agree. I think, if anything, it could cause some of a different political persuasion to avoid posting altogether. That means missing out on some potentially good investment wisdom.
Comments
Second, most investors should ignore politics, headlines, and constant media noise. You don’t invest based on emotion or ideology—you invest based on your financial goals and what the markets are actually doing. That part is simple.
I’ve shared my thoughts. Earlier in the year Value, International, and CEFs (like PDI). After the bear market bounce in mid-April, US Large Cap tilting Growth (VOO, QQQ).
With my own portfolio and not recommended to anyone. I never diversify since 1990. I’ve always focused on top-performing wide-range categories with strong risk/reward profiles. I’m a trader and a timer—used to own a very high percentage in stock funds, but since retirement, I mostly own bond OEFs.
Examples:
I sold PIMIX in Jan 2018 and never looked back.
I closely track Crossbridge funds.
In 2024, I used HOSIX, CLOZ, and CBYYX for the first time ever.
In 2025, I allocated a huge percentage to international bonds—also a first—and I lightened up lately. I don’t forecast—I just follow the data and what the market is showing.
Constant complaining and trashing others doesn’t help anyone get better results.
Yes. You missed it. It wasn’t in the OP. @Mark provided it and I’ve reposted it elsewhere in the thread. Here it is: Will Trump Really Fire Powell? Markets Whipsaw with Fed Independence On the Line
- ”Second, most investors should ignore politics, headlines, and constant media noise. You don’t invest based on emotion or ideology—you invest based on your financial goals and what the markets are actually doing”.
I think the majority here would agree that noise and hysteria don’t make for smart decision making. I think @LarryB’s point was that the political climate has turned more “chaotic” and some of Trump’s recent moves like threatening to fire the Federal Reserve Chair do “spill over” into investing. Such a departure from past norms may affect interest rates, inflation, confidence in the dollar and alter how global investors perceive the U.S. A nation’s political stability / instability may have a place in one’s investment decisions along with all the other factors. That’s the point he was making.
- ”I’ve shared my thoughts. Earlier in the year Value, International, and CEFs (like PDI). After the bear market bounce in mid-April, US Large Cap tilting Growth (VOO, QQQ).”
Thanks for sharing your insights. I think value is a safer long term play than a lot of what is appreciating now. I’d add that small and mid-cap are probably fairer valued now.
- ”With my own portfolio and not recommended to anyone. I never diversify since 1990. I’ve always focused on top-performing wide-range categories with strong risk/reward profiles. I’m a trader and a timer—used to own a very high percentage in stock funds, but since retirement, I mostly own bond OEFs”.
Your grammar here may cause confusion for some. It sounds like you have recently cut back on timing and trading with age and now invest mainly in bond funds. I’ve never been a trader or timer. I’m culling risk now as I near 80. Risk is fine if you have a long term horizon and can ride out downturns or add to your holdings when they head south,
- ”Constant complaining and trashing others doesn’t help anyone get better results”.
Agree. I think, if anything, it could cause some of a different political persuasion to avoid posting altogether. That means missing out on some potentially good investment wisdom.