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rjb112
Well thanks for all your great instruction and telling me about it.
I would be interested in investing in The Motley Fool Funds, but their expense ratios are too high. A bit hypocritical of them, as for years before coming out with their 3 funds, they often spoke very negatively about mutual funds other than index …
@MJG: Thanks very much for your reply, much appreciated.
With respect to (a different reply): "By the way, hard assets represents a fourth investment category in addition to equities, bonds, and cash. It is an investment with intrinsic value. Typica…
@MJG: Thanks for your thoughtful and most valuable comments.
"That’s why I proposed the one to two year cash reserve"........"I’m mentally prepared to accept some low probability cash flow shortfalls"........"I suggest that in a market meltdown situ…
@MJG: Thanks for the excellent post.
With respect to: "Perhaps we should focus our attention on things we can control. Things like building a cash, or near-cash (short term corporate bonds) reserve of a year or two to outlast any Bear market scenar…
I am surprised why Gundlach doesn't see the mechanism of how Fed policies give rise to asset bubbles.
@cman: Would you mind going into the mechanism of how Fed policies, e.g., quantitative easing and Fed Funds rate of 0-.25%, gives rise to asse…
If you have access to load funds but don't have to pay a load
What are the most common ways to get access to load funds without having to pay the load?
I define FMV as the market level where stocks are set to return historical average returns for the next decade. By my calculations, that level is over 40% below where we are today. Many, many thanks to Mr. Bernanke for the huge run up. These last c…
@Charles: "It is one reason I've been drawn more to all-asset, all-authority funds."
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Besides the 2 Pimco offerings managed by Rob Arnott, what other all-asset, all-authority type funds are you aware of?
Excessive Funditis is a function of: ego, greed. Both are rampant and bad for investors. Royce is my poster child of fund companies that have let such forces run amok.
Few indeed, are the fund companies that act as true fiduciaries (IVA? Tweed…
@cman: When I followed him many years ago, at that time he was issuing sell signals to go from 100% equities to 100% cash all in one day; and buy signals to go from 100% cash to 100% equities all in one day. That's his MO. That's why I asked the …
@Lawlar: What date did he 'steer his subscribers out of the market during the 2008/2009 crash'? Did he all in one day go from 100% invested to 100% cash?
What date did he get back in for the bull market that started March 9, 2009, and did he go …
@bee: I'm quite impressed with your graphics. Can you give a little tutorial on how to do that? Even if in a PM to me if you don't want to do a public post on that? So more specifically, 1) How do you post a chart or graph? 2)How do you add the …
@Lawlar, I'm familiar with the Chartist mutual fund letter. I believe the author is Dan Sullivan, and he's a well known market timer. Did he get his subscribers out of the market for the October 9, 2007-March 9, 2009 big bear market? Did he get h…
@bee: "A buy/sell strategy I am trying to implement has me holding shorter duration bonds just before rates raise, wait for the longer duration bond fund to adjust downward and then hold the longer duration bond fund as it recovers".
How will you …
"A spokesman at the Investment Company Institute, which represents the mutual-fund industry, noted that international stocks, including emerging markets, accounted for 30% of the equity allocation of the typical target-date fund. But this still is …
"I was lucky to get into the institutional class share without meeting the $1 million min"
How were you able to do that?
I know that for those with an account at discount broker TD Ameritrade, there are a limited number of institutional share clas…
"It’s a no-brainer, right? Owning bonds is bad when interest rates are on the rise.
Not so fast.
A review of past rising-rate periods shows that bond investments performed surprisingly well."
"Consider the performance from 1966 through 1981 of a p…
@msf: thanks for that great information about accessing Morningstar's annual calendar year data back thru 2004.
"If one is not going to do anything with the investment for many years, what difference does it make how it behaves in the short term?".…
@bee: thanks, very useful stuff.....each calendar year annual return! I've been getting my calendar year return figures from Morningstar, but they only go back to 2009 for mutual funds.
Interesting that Morningstar and Yahoo don't concur on all th…
@Ted: I googled to try and get access to the David Herro interview. I keep getting returned to the Barron's site where you need a subscription to gain access. Any ideas?
@bee: some great information, thanks.
1. Regarding the USFIX exposure to equities: that probably rules it out for me; I don't need more equities.
2. Where do you find the information on how many years a fund has gone without a negative calendar …
I have a lot of respect for several of the First Eagle mutual funds, especially First Eagle Global (SGENX), which has a long history of good risk adjusted returns in all markets.
This one has super high expense ratios: The Class A shares have an e…
@cman: "For example USFIX gets its performance in its short life from overweighting short term junk bonds while having a small asset base. It has a short duration because of that allocation"
Not sure how you arrived at this. Morningstar.com says t…
Off topic: @MJG, appreciate your assessment/comments to what I have posted in the Discussion Topic:
Your Favorite Fixed Income Funds For a Rising Rate Environment
Thanks very much. Sorry for the off topic post.
@cman, yes, certainly agreed, current duration is not in and of itself a good fund selection strategy for actively managed funds....... especially the more 'actively' they manage. They can have significant changes in the bond sectors they are inves…
That USFIX looks very interesting. The duration is only 1.66 years, so it won't get hit too badly as rates normalize. I'm going to look into that, thanks! Very good to know about them being voted #1, best fixed income. I'm going to try and find …
Anybody invested in FPNIX? (FPA New Income). A very risk averse manager. I think he would take action to prevent or minimize losses in a rising rate environment. FFRHX should do well in a rising rate environment, but not in a bear market for sto…
@Crash:
1. The duration is 4.4 years, meaning that for each 1% interest rate rise, the bonds will go down in value by 4.4%. Could be risky in a rising rate environment.
2. You mentioned you wish you owned it. What's holding you back?
