Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
These days we rebalance when the opportunities present themselves. It is more than quarterly as we have done in the past. For example: 1. Precious metals and mining stocks lost 5% on Monday, Dec 29, 2025. Picked up few shares of SLVR and GDX to increase the alternative bucket. Congrat to @Old_Joe who made similar move. 2. Sold some VOO and bought EM mid-cap value funds. Goal is to shift US equity more to oversea that have more attractive valuation. 3. Sold some PRWCX and bought international value funds. Same reason as #2. 4. Increase oversea bond allocation using DODLX and NRDCX as $38 trillion national debt and $950 billion annual interest worry us. Also the dollar lost ~10% versus other major currencies in 2025. Will the deficit improved in 2026? Will trim US bonds to half when signs of the FED losing their independence. 5. Maintaining 5-10% in cash and cash equivalent as we approach retirement.
As i mentioned previously, our annual gain is modest with our globally diversified and conservative portfolio, and that is good enough for us. Risk mitigation remains our main goal, especially in this chaotic year.
Like @hank bucket approach and the naming nomenclature.
- "These days we rebalance when the opportunities present themselves."
Agree with ya there. Lock-in gains - especially the nice ones.
- "Picked up few shares of SLVR and GDX to increase the alternative bucket."
I won't touch precious metals with a 10-foot pole. But do own a few investment grade Morgans. Also have some limited exposure to the precious metals through more broadly diversified funds.
Ditto @Old_Joe / Just remember: "It ain't over 'til the fat-lady sings."
- "Sold some VOO"
Generally speaking I don't invest in S&P index funds or similar.
- "Bought some EM mid-cap value funds."
Sounds like a smart move. However, I've somewhat backed off on the midcaps. Did pick up a little BATRA today, an indirect play on real estate and internet sports betting. EM? Prone to streaks of under and overperformance
- "Goal is to shift US equity more to oversea that have more attractive valuation."
A worthy goal. I'd be a little careful as many overseas markets have had a nice run-up.
- "Sold some PRWCX"
It's been a great fund. I owned it many years ago.
- "Bought some international value funds"
I do think there's value in value. About all I look at any more.
- "Increased oversea bond allocation using DODLX and NRDCX"
Agree with having a toe-hold on international currencies & bonds. But use care. Many foreign currencies have had a nice run up.
- "$ 38 trillion national debt and $950 billion annual interest worry us."
Yes. Worries many. Simplest (and most likely) solution is to monetize the debt by allowing the dollar to erode in value. Short term they'll try to reduce interest expense by holding rates down, but likely to backfire long term.
- "Maintaining 5-10% in cash and cash equivalent as we approach retirement."
My direct cash holdings are around 20% of portfolio. Toss in in what's held thru diversified funds and it's closer to 30%.
- "Our annual gain is modest with our globally diversified and conservative portfolio.'
- "Risk mitigation remains our main goal ... "
Agree with both of above.
- Like @hank bucket approach and the naming nomenclature.
It helps me to think more clearly to have a structured portfolio plan. Lots of different concepts and terms can be utilized - with names like: buckets, sleeves, ranges, subsets, targets, limits and nominal positions.
Thanks for the mention @Sven Very nice summary by you.
@hank, Making buckets of ETFs enable one to explore your ideas and themes as part of the strategies. Will watch your progress.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
The tread of debasing US dollar has hold for more a year due to heighten debt. For example, Euro-zone countries and China have steady selling treasury. For the near term, US dollar will remain the world reserve currency in the near term. The tariffs are opening opportunities for other major currencies.
@hank, Making buckets of ETFs enable one to explore your ideas and themes as part of the strategies. Will watch your progress.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
Agree. My only "long-lasting" bucket is the one having 10 CEFs that was largely assembled in the March-April period. Have experimented with a few others - but found it pretty hard in most cases to replicate what a good fund manager does - even when expenses are factored in.
Thanks for the comments @Sven. Best of fortunes with your approach.
Added to BEP and BIP in my long-long term account earlier this week, so I sold BIPI and BEPI (Brookfield baby bonds) in my other account at zero gain/loss to raise cash.
Added to ATGFF b/c I think it's in a pretty enviable position in Canada's Pacific energy export infrastructure, plus it has some ute exposure as well. Could also be a merger or takeout target since it's market cap is < $10b ... but I see it 'going places' as Canada continues to ramp up its energy exports to Asia.
Yesterday I brought my equity allocation down 10 ppts to 50% (I’m 57) and feel I don’t like the risk reward as much from here. Sold a third of my KGGAX holdings (up 64% in 2025) and a quarter of my OAKWX, all of my DODGX and DODFX and a small bit of FPACX. It’s the biggest one day change I’ve ever made by far. I am also confident my fixed income allocation can now deliver 6%+ returns. Added to my fixed income allocations which are now:
NRDCX 8.5% ACBAX 8.5% HOSIX 6.8% USDX 5.9% CBLDX 5.4% CLOA 1% CBUDX 1% The rest is in cash via funds such as FPACX (12% allocation to this fund). I feel this is generally a short term high yield allocation with limited correlations to equities risk and corporate credit spread widening.
One equity fund I believe offers a strong risk/reward proposition from here is GPGIX so some of what I took from other equity funds went into this fund, Quality international small and mid cap growth stocks have been left in the dust and this fund has suffered as a result. But I still believe the management team and their approach.
T-Bill matured on 01/02/26. Placed an order to buy additional shares of BBBIX. BBBIX provides potentially higher returns than VMFXX without much additional risk exposure.
BBBIX is a taxable bond fund with only 0.3% in muni securities and 0.2% in U.S. Treasuries as of 09/30/25. I'm not familiar with the tax policies of various states, but it seems likely most of the fund's returns would be subject to state taxation. I live in WA which does not have a state income tax.
...Just a quick alert, here: Schwab SWVXX MMkt. interest offered is now down to 3.61%. Less attractive than before. I will continue to use it only for the purpose of segregating money devoted to an early Fall trip this year--- in order to keep that much out of the Markets and protected from risk. I hope we don't "break the buck." When was it that actually happened? Was it the 1980s S & L crisis? I just watched the film, "Inside Job." A good reminder of how the "Wall Street government" of both major Parties screw(ed) the rest of us, out beyond their Ivory Towers. https://www.imdb.com/title/tt1645089/?ref_=nv_sr_srsg_0_tt_8_nm_0_in_0_q_an%20inside%20job
The probability that a U.S. MMF "breaks the buck" is infinitesimal. From perplexity.ai: "Given public information, the only clearly and consistently documented U.S. funds that broke the buck are Community Bankers U.S. Government Money Market Fund and Reserve Primary Fund; any claim to list all such funds would require access to specialized regulatory databases and internal fund records that are not publicly consolidated."
In the IRA: Sold BUBIX, CBUDX, and FLTR. CBUDX and BUBIX have fallen behind FGUSX in performance and yield. I'm not sure where the proceeds will go. Watch this space.
FLOT will replace FLTR as the designated floater. It has a higher exposure to government and foreign issues than the other funds that were under consideration. So I have given up a little performance.
In the IRA: I didn't actually sell BUBIX until today. I also sold BBBMX.
I bought BBBIX with some cash I had lying around. Proceeds from today's sale will go, in part, to PMAIX to bring it up to the same percent as PRWCX.
I am considering a slug in JPIB roughly equal to what I had in BUBIX. It appears to be on the shorter side of duration than most foreign or global options, and that is where I like to be. Any moves in bond funds will happen after the next inflation report.
FLOT has been a complete bust so far, especially since I forgot to reinvest the dividends and missed several payouts. Bummer
I think I will be looking into dollar cost averaging into FMILX, EISIX, ALVIX, and FMIEX as my chosen equity funds. The current positions were opened at the minimum. My allocation to equity is currently languishing at 12%. So I would have to keep some money in a money market and some place (ultra-short ETF or NTF OEF) to stash some of the cash to refill the money market as needed.
... My only "long-lasting" bucket is the one having 10 CEFs that was largely assembled in the March-April period. Have experimented with a few others - but found it pretty hard in most cases to replicate what a good fund manager does - even when expenses are factored in.
...Just a quick alert, here: Schwab SWVXX MMkt. interest offered is now down to 3.61%. Less attractive than before. ...
I will continue to tolerate the decline, while I watch for a swoon. Half of my cash reserves are in TBUX, which returned 5.37% in 2025. Maybe I buy more. Appreciate the reminder.
Relatedly, something that I appreciate about this thread is hearing how others strategize exchanges and purchases, the how's and why's.
...Just a quick alert, here: Schwab SWVXX MMkt. interest offered is now down to 3.61%. Less attractive than before. ...
BBBIX is interesting.
I have mentioned before that I love their sales pitch:
Our active management approach seeks to build low duration, taxable bond portfolios bottom-up allowing valuation to drive our portfolio construction. We only invest in credits we believe to be durable, well-managed, appropriately structured, and that can be comprehensively researched and understood.
"The investment objective of the BBH Limited Duration Fund (the “Fund”) is to provide maximum total return, consistent with preservation of capital and prudent investment management."
All of my funds are required to provide maximum total return and prudent investment management. Funds that fail to do so are strictly prohibited!
Typical January raid on my funds again in 2026. I never want to pull too much from one source. Spread it around, like manure. PRWCX, PRCFX, PRCPX and BLX were the targets this time. It's very counterintuitive to yank money from a good performer. BLX has been treating me very nicely. But I'm learning not to hang on for too long, as I did with BHB. BLX fell off a cliff just today, and I can't find a shred of an idea anywhere as to WHY.
As I enter my 8th year of retirement and concerned about the nosebleed equity valuations, and low return, high risk of HY bond funds, I’ve been in the process of reducing our bond risk by shifting from HY funds to JAAA, NEAR, and VCSH; each short term and covering the corporate and securitized areas. It’s challenging to let go of funds such as OSTIX and RSIIX but don’t feel compensated for the risk. The transition is incomplete because I really like the managers and how they communicate in language I understand.
Our equity allocation is at 38% and mostly index funds, so to reduce the focus on mag 7, I’ve moved a chunk from VTSAX to VPCCX. Still have the lion’s share in VTSAX and VDADX. I want to add to the small investment in FPCSX from mmkt but will wait for an opportunity.
In the IRA: Bought a slug of JPIB. It's on sale today. . Exposure to foreign bonds from PMAIX isn't as much as one might expect. With those two purchases I have pushed the duration of the bond sleeve to 2.27. I have strapped myself down.
Sold BIAVX since it's back in the green enough for me. Bought this "Great Owl" last November, and then it belly flopped. I don't know if it's still a Great Owl, but the standard deviation is greater than FMILX. I don't need that excitement. The proceeds will be distributed among ALVIX, FMIEX, FMILX, and EISIX however Mr. Market greets the Supremes' decision on tariffs.
The equity allocation in the taxable is now up to 14% after doubling my stake in PMAIX. Still considering setting up an automated investment plan for the four horsemen of the IRA so I don't have to think about it. I might just park the cash in VNLA or GSST until opportunities present themselves or Dear Leader stops telling everyone how to run their business.
Comments
1. Precious metals and mining stocks lost 5% on Monday, Dec 29, 2025. Picked up few shares of SLVR and GDX to increase the alternative bucket. Congrat to @Old_Joe who made similar move.
2. Sold some VOO and bought EM mid-cap value funds. Goal is to shift US equity more to oversea that have more attractive valuation.
3. Sold some PRWCX and bought international value funds. Same reason as #2.
4. Increase oversea bond allocation using DODLX and NRDCX as $38 trillion national debt and $950 billion annual interest worry us. Also the dollar lost ~10% versus other major currencies in 2025. Will the deficit improved in 2026? Will trim US bonds to half when signs of the FED losing their independence.
5. Maintaining 5-10% in cash and cash equivalent as we approach retirement.
As i mentioned previously, our annual gain is modest with our globally diversified and conservative portfolio, and that is good enough for us. Risk mitigation remains our main goal, especially in this chaotic year.
Like @hank bucket approach and the naming nomenclature.
- "These days we rebalance when the opportunities present themselves."
Agree with ya there. Lock-in gains - especially the nice ones.
- "Picked up few shares of SLVR and GDX to increase the alternative bucket."
I won't touch precious metals with a 10-foot pole. But do own a few investment grade Morgans.
Also have some limited exposure to the precious metals through more broadly diversified funds.
- "Congrats to @Old_Joe who made similar move."
Ditto @Old_Joe / Just remember: "It ain't over 'til the fat-lady sings."
- "Sold some VOO"
Generally speaking I don't invest in S&P index funds or similar.
- "Bought some EM mid-cap value funds."
Sounds like a smart move. However, I've somewhat backed off on the midcaps. Did pick up a little BATRA today, an indirect play on real estate and internet sports betting. EM? Prone to streaks of under and overperformance
- "Goal is to shift US equity more to oversea that have more attractive valuation."
A worthy goal. I'd be a little careful as many overseas markets have had a nice run-up.
- "Sold some PRWCX"
It's been a great fund. I owned it many years ago.
- "Bought some international value funds"
I do think there's value in value. About all I look at any more.
- "Increased oversea bond allocation using DODLX and NRDCX"
Agree with having a toe-hold on international currencies & bonds. But use care. Many foreign currencies have had a nice run up.
- "$ 38 trillion national debt and $950 billion annual interest worry us."
Yes. Worries many. Simplest (and most likely) solution is to monetize the debt by allowing the dollar to erode in value. Short term they'll try to reduce interest expense by holding rates down, but likely to backfire long term.
- "Maintaining 5-10% in cash and cash equivalent as we approach retirement."
My direct cash holdings are around 20% of portfolio. Toss in in what's held thru diversified funds and it's closer to 30%.
- "Our annual gain is modest with our globally diversified and conservative portfolio.'
- "Risk mitigation remains our main goal ... "
Agree with both of above.
- Like @hank bucket approach and the naming nomenclature.
It helps me to think more clearly to have a structured portfolio plan. Lots of different concepts and terms can be utilized - with names like: buckets, sleeves, ranges, subsets, targets, limits and nominal positions.
Thanks for the mention @Sven Very nice summary by you.
I use the alternative bucket as a low correlation vehicle to equities. Precious metal is fine but they are for good trading purpose by taking advantage of the high volatility. Warren Buffet does not invest in gold since they fail to meet his criteria - no dividend and intrinsic value. Thus, investors should maintain a small allocation, 5-10%.
When i see more long term treasuries re-open at auction, i have to wonder why when Bessent said the Treasury dept wants to reduce their long bond holding. Something does not jive.
The tread of debasing US dollar has hold for more a year due to heighten debt. For example, Euro-zone countries and China have steady selling treasury. For the near term, US dollar will remain the world reserve currency in the near term. The tariffs are opening opportunities for other major currencies.
Thanks for the comments @Sven. Best of fortunes with your approach.
Added to ATGFF b/c I think it's in a pretty enviable position in Canada's Pacific energy export infrastructure, plus it has some ute exposure as well. Could also be a merger or takeout target since it's market cap is < $10b ... but I see it 'going places' as Canada continues to ramp up its energy exports to Asia.
Added: reducing risk but not wanting to leave CrossingBridge.
NRDCX 8.5%
ACBAX 8.5%
HOSIX 6.8%
USDX 5.9%
CBLDX 5.4%
CLOA 1%
CBUDX 1%
The rest is in cash via funds such as FPACX (12% allocation to this fund).
I feel this is generally a short term high yield allocation with limited correlations to equities risk and corporate credit spread widening.
One equity fund I believe offers a strong risk/reward proposition from here is GPGIX so some of what I took from other equity funds went into this fund, Quality international small and mid cap growth stocks have been left in the dust and this fund has suffered as a result. But I still believe the management team and their approach.
Placed an order to buy additional shares of BBBIX.
BBBIX provides potentially higher returns than VMFXX without much additional risk exposure.
I'm not familiar with the tax policies of various states, but it seems likely most of the fund's returns
would be subject to state taxation. I live in WA which does not have a state income tax.
When was it that actually happened? Was it the 1980s S & L crisis? I just watched the film, "Inside Job." A good reminder of how the "Wall Street government" of both major Parties screw(ed) the rest of us, out beyond their Ivory Towers.
https://www.imdb.com/title/tt1645089/?ref_=nv_sr_srsg_0_tt_8_nm_0_in_0_q_an%20inside%20job
From perplexity.ai:
"Given public information, the only clearly and consistently documented U.S. funds
that broke the buck are Community Bankers U.S. Government Money Market Fund
and Reserve Primary Fund; any claim to list all such funds would require access to
specialized regulatory databases and internal fund records that are not publicly consolidated."
I bought BBBIX with some cash I had lying around. Proceeds from today's sale will go, in part, to PMAIX to bring it up to the same percent as PRWCX.
I am considering a slug in JPIB roughly equal to what I had in BUBIX. It appears to be on the shorter side of duration than most foreign or global options, and that is where I like to be. Any moves in bond funds will happen after the next inflation report.
FLOT has been a complete bust so far, especially since I forgot to reinvest the dividends and missed several payouts. Bummer
I think I will be looking into dollar cost averaging into FMILX, EISIX, ALVIX, and FMIEX as my chosen equity funds. The current positions were opened at the minimum. My allocation to equity is currently languishing at 12%. So I would have to keep some money in a money market and some place (ultra-short ETF or NTF OEF) to stash some of the cash to refill the money market as needed.
Relatedly, something that I appreciate about this thread is hearing how others strategize exchanges and purchases, the how's and why's.
BBBIX is interesting.
total return, consistent with preservation of capital and prudent investment management."
All of my funds are required to provide maximum total return and prudent investment management.
Funds that fail to do so are strictly prohibited!
Our equity allocation is at 38% and mostly index funds, so to reduce the focus on mag 7, I’ve moved a chunk from VTSAX to VPCCX. Still have the lion’s share in VTSAX and VDADX. I want to add to the small investment in FPCSX from mmkt but will wait for an opportunity.
Horrible day for Utilities.
I now have full and equal amounts in JPST, HFSI, NEAR, JPIB, ICSH, BINC, JAAA and PYLD...along with a slight overweight to JPIE.
On the equity side, I added to BRXAX, EADOX and BISAX.
Sold BIAVX since it's back in the green enough for me. Bought this "Great Owl" last November, and then it belly flopped. I don't know if it's still a Great Owl, but the standard deviation is greater than FMILX. I don't need that excitement. The proceeds will be distributed among ALVIX, FMIEX, FMILX, and EISIX however Mr. Market greets the Supremes' decision on tariffs.
The equity allocation in the taxable is now up to 14% after doubling my stake in PMAIX. Still considering setting up an automated investment plan for the four horsemen of the IRA so I don't have to think about it. I might just park the cash in VNLA or GSST until opportunities present themselves or Dear Leader stops telling everyone how to run their business.