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@msf, thank you for the NYU link. Just bookmark it. Very instructive to see different asset classes returns going back to 1926.
@davidrmoran, that is what Warren Buffet recommended for most investor.
@WABAC, not us. The long end of yield curve have moved up considerably this year. We have moved some short duration bonds to intermediate term bonds. Still cautious due to the sticky inflation.
@WABAC, not us. The long end of yield curve have moved up considerably this year. We have moved some short duration bonds to intermediate term bonds. Still cautious due to the sticky inflation.
@Sven, too many shoes to drop before I think about going much further out than the duration of a FPNIX or FTHRX, so about 3.7 max. THOPX might be an easier stretch.
With summer over, I want to see how Mr. Market reacts to whatever numbers come out in September, not to mention his reaction to the churn from the White House and the courts.
@WABAC, Think we are on the same page on that. Majority of our bonds are on the shorter end. Our small moves to 5-7 years bonds have been gradually as we monitor the inflation data and employment number. Going to long duration is pre-mature at this point.
What has not been talk about in the press is stagflation. Political pressure is mounting for September FOMC meeting.
Odds are leaning toward a cut, everywhere you look in the media. But they ought not to do it, in my humble opinion. Inflation is not at 2% yet. Maybe 2% under current circumstances is a pipedream, given the extraordinarily screwed up, Orange political picture.
Comments
(That table also shows real returns after inflation)
| Year | VFINX Annual Return | IEF Annual Return |
|---|---|---|
| 2007 | +5.39% | +10.38% |
| 2008 | -37.02% | +17.92% |
| 2009 | +26.52% | -6.59% |
| 2010 | +14.91% | +9.36% |
| 2011 | +1.96% | +15.65% |
| 2012 | +15.82% | +3.66% |
@davidrmoran, that is what Warren Buffet recommended for most investor.
@WABAC, not us. The long end of yield curve have moved up considerably this year. We have moved some short duration bonds to intermediate term bonds. Still cautious due to the sticky inflation.
With summer over, I want to see how Mr. Market reacts to whatever numbers come out in September, not to mention his reaction to the churn from the White House and the courts.
What has not been talk about in the press is stagflation. Political pressure is mounting for September FOMC meeting.