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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.
At Hank. My point,, if I failed to explain it correctly, was the an outfit like M* which is not part of the lunatic left,,, was clearly linking political action to market risk. Today, another non lunatic left source, CNBC has a similar story about the same possible market risks. So my point is was simply that the mainstream, establishment financial media is now warning of increased market risks driven by political action. If they can consider this non normal risk, shouldn’t we on MFO do the same? We talk about interest rates, we talk about valuations. These aren’t normal times and political risk is something investors of all three parties should consider.
Larry - I don’t think we’re far apart in assessing what your point was. No one can deny that mainstream media is “linking political action to market risk” if that’s your point.
I think we’ve established that mainstream media (or a good part of it) has been linking political actions to market risk for most of this year. Does anyone seriously believe global markets would have plunged about 10% in a few days back in April had it not been for Trump’s remarks about imposing tarrifs?
Where you would have an argument with his supporters is whether these words and actions constitute unwarranted ”political gamesmanship” or whether they are the acts of an elected leader doing what he thinks is in the long run best interest of the country. It’s a fair debate, but not what your post was about.
Hank. Your last question leaves out the obvious third possibility as to what drives the president. It seems very obvious to me but in the interest of civility it will remain unsaid.
This all eeminds me of what David wrote in March 2025
”March 2025 coda: I am very sympathetic to the argument that much of our national dialogue and decision-making, just at the moment, is dominated by self-blinded ideologues, self-important amateurs, lickspittles, pompous mountebanks, braying popinjays, and hollow-hearted poltroons whose ill-conceived, constitutionally dubious edicts and ham-fisted policies have been rightfully struck down in courtrooms across the nation.
That having been said, it is in our shared best interest not to imitate those we most despise by allowing our frustrations to spill over into discussions that are read by - and encourage silence from - some of the hundreds of people who visit the board each week but who do not post on it. If you must vent to keep your head from exploding, post in Off-Topic and not Other Investing.”
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.
If some far right posters complain, well, that's their right also.
From Barron’s https://www.barrons.com/articles/fund-managers-grapple-autocracy-risk-846a0621?st=fdjMr2
From The Wall Street Journal https://www.wsj.com/opinion/jerome-powell-donald-trump-federal-reserve-chairman-c7376c12?st=jATmaV&reflink=article_email_share
From AP News https://apnews.com/article/trump-powell-congress-federal-reserve-2b6f104028489d8051d7ac27492298eb
From Reuters https://www.reuters.com/markets/wealth/investors-fear-trumps-attacks-powell-will-pile-pain-2025-04-22/
From Bloomberg https://www.bloomberg.com/news/articles/2025-07-13/market-resilience-challenged-by-trump-s-weekend-tariff-salvo
From Investopedia https://www.investopedia.com/trump-criticism-of-powell-is-shaking-markets-faith-in-federal-reserve-independence-11719211
From The Hill.Com https://thehill.com/homenews/senate/5259689-trump-attacks-federal-reserve/
From Politico https://www.politico.com/news/2025/04/11/wall-street-executives-inflation-recession-economy-00286351
From CNN https://www.cnn.com/2025/03/03/economy/tariff-choas-threatens-risky-economy
From The New York Times https://www.nytimes.com/2025/02/02/business/stocks-trump-tariffs.html
- https://www.nytimes.com/2025/04/18/business/trump-powell-fed-markets.html
From CNBC https://www.cnbc.com/2025/03/10/trump-an-agent-of-chaos-and-confusion-economists-warn.html
- https://www.cnbc.com/2025/04/07/trump-tariffs-live-updates-stock-market-crypto.html
I think we’ve established that mainstream media (or a good part of it) has been linking political actions to market risk for most of this year. Does anyone seriously believe global markets would have plunged about 10% in a few days back in April had it not been for Trump’s remarks about imposing tarrifs?
Where you would have an argument with his supporters is whether these words and actions constitute unwarranted ”political gamesmanship” or whether they are the acts of an elected leader doing what he thinks is in the long run best interest of the country. It’s a fair debate, but not what your post was about.
”March 2025 coda: I am very sympathetic to the argument that much of our national dialogue and decision-making, just at the moment, is dominated by self-blinded ideologues, self-important amateurs, lickspittles, pompous mountebanks, braying popinjays, and hollow-hearted poltroons whose ill-conceived, constitutionally dubious edicts and ham-fisted policies have been rightfully struck down in courtrooms across the nation.
That having been said, it is in our shared best interest not to imitate those we most despise by allowing our frustrations to spill over into discussions that are read by - and encourage silence from - some of the hundreds of people who visit the board each week but who do not post on it. If you must vent to keep your head from exploding, post in Off-Topic and not Other Investing.”
https://www.mutualfundobserver.com/discuss/discussion/54743/welcome-to-the-mfo-discussion-board-civility-is-most-important-when-all-around-you-are-turn-toxic#latest