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SPY vs PONDX total returns, probably not what many would expect to view

catch22catch22
in Fund Discussions
@JoeD posted a recent thread regarding a new offering from VanEck, LFEQ . The fund apparently uses a form of algo for a mix of SPY and some type of U.S. Treasury to establish the path of best total return. A very new and untested fund during the "nasties".

Below is a total distributions return of SPY vs PONDX . I chose PONDX , instead of PIMIX ;as the majority of individual investors could afford to access PONDX .
Just a looking backwards view of returns that may surprise you. (April 2, 2007- Jan. 29, 2018) Place the cursor on the graphic line of choice for total return number and date. The cursor may be positioned anywhere onto the graphic.


http://stockcharts.com/freecharts/perf.php?SPY,PONDX&p=6&O=011000

Enjoy your remainder, pillow time here.
Catch

Comments

  • TedTed
    edited January 2018
    @MFO Members: Catch22's returns for SPY and PONDX only prove how to to make any point, or lying with statistics. In 2008 SPY returned -(36.81)% while PONDX -(5.79)%. That 31.62% difference skewed his chart. Take out the year 2008, the numbers would look very different.
    Regards,
    Ted
  • JoeD
    edited January 2018
    In order to show how bonds offer some protection during a bear (equity) market, one would have to include 2008-2009. We know that doesn't mean these security classes will perform the exact same way during the next bear. And longer dated bonds (whether you look at Munis, Treasuries, Corporates, etc.) aren't exactly bargains here with interest rates rising.

    But diversification often translates to a smoother ride. And at these levels, that may be a prudent idea. I've actually been adding to a Floating rate fund (SPFPX) and have cut back a little on PONDX.
  • MarkMark
    With respect to that chart business, the numbers aren't lying. All it shows is that adding and/or removing a year leads to different or changing results. How you present them is where the lying comes in.
  • willmatt72
    edited January 2018
    SPY sure had a bumpy ride on a few occasions. I was about 40% equities back (2008) then and still felt like I got crushed.
  • Old_JoeOld_Joe
    @Ted- Of course the idea is to deliberately include the last major down cycle. What would be the point of leaving it out? That would be the lie.
  • catch22catch22
    edited January 2018
    The chart example is/was as intended. One must pay attention to how data is expressed, used and shown. A constant problem today in many circles where one hears verbal and the question remains; show me the data.
    Y'all will receive an award in the mail as soon as you provide your home address to me.:)

    A few adds: Taking the same chart and pulling 2 sections.

    ---This chart section is from the very bottom of the equity market melt to date; although this (the bottom) was not yet known and there remained many folks who were still attempting to remove the stains from their shorts, including Ben Bernanke, Timmy "TurboTax" Geithner and some folks I personally know.

    March, 2009 - Jan. 29, 2018 (Apologies, previous chart did not set early date properly)
    http://stockcharts.com/freecharts/perf.php?SPY,PONDX&n=2238&O=011000

    ---This 3 year section expresses the gyrations still in place from various factors. Europe still found the Central Bank in austerity mode, and Greece was the word, Japan, well, I don't recall what they were doing and in July of 2011 the U.S., it's/our AAA credit was downgraded one notch. Other than a few other things, almost smooth sailing, yes? The very good traders, including individuals have made a boat load of money since Sept. of 2008!

    Dec. 2010 - Dec. 2013
    http://stockcharts.com/freecharts/perf.php?SPY,PONDX&l=942&r=1696&O=011000

    ---A wonderful review and new for some here. Clarke and Dawe, two Aussie's who put everything in perspective in 2.5 minutes regarding the "times" then, July, 2010. A must watch, IMHO.



    Has much changed? What say you ???

    Hey, have a great remainder.
    Catch
  • TedTed
    @catch22: You and Old_Joe need to read this book !
    Ted:(
    https://www.amazon.com/How-Lie-Statistics-Darrell-Huff/dp/0393310728/ref=sr_1_1?ie=UTF8&qid=1517343366&sr=8-1&keywords=how+to+lie+with+statistics+huff#reader_0393310728
  • catch22catch22
    Hey, I received this one as a self-requested Christmas present. Geez, @Ted ; we're a little bit alike, eh?

    "A Field Guide to Lies, Critical Thinking in the Information Age"

    https://www.amazon.com/Field-Guide-Lies-Critical-Information/dp/1524702528
  • TedTed
    :)
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