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Sven
Lynn,
Thank you so much. I am planning on a 3-year ladder since I am a year away from retirement. Lots of spreadsheet work to calculate the income replacement needed. This ladder will create a steady income stream. So thank you for all your help.
I moved back to high quality bond funds this year. Some of which you covered in the SA article. For now, I will stay with agency bonds to the bond ladder. I will pick active managers for corporate bonds.
Sven
@Old_Skeet,
So, in short words I should expect about half of what I received from the market going forward for the next ten years when compared to the past ten year period.
I concur with the range of 4% total return. Not quite as bearish as GMO for…
It is conservative pick... Remember he came from Goldman Sach to work for Hank Paulson. It helped to have the public exposure to oversee TARP in time of crisis. While his tenure was short, his success in the private sector, PIMCO, is less certain.…
That is for sure with the declining quality of journalism. Both WSJ and Barrons have been reducing their senior editor headcount and one have to select what to read (and forget the rest). I no longer keep my subscription to Barrons years ago.
@davfor, Thanks for the UBS clip. Narendra Modi is having hard time recently as India could be one of the brighter spot among EM.
theguardian.com/world/2015/nov/08/narendra-modis-party-concedes-defeat-in-bihar-election
2016 could wind up to b…
@hank, thank you for the details on SCM. For the small personal gain, his firm was sold to Well Fargo. I also read he has vision of SCM as big as Fidelity.
@hank, Thought that was a bit heavy-handed. Other firms paid fines in form of reduced management fee. It was sheer greed that drives these firms to commit these acts. Janus was another firm that went downhill since then.
Dick Strong when he wa…
That is one of the reason they are ending their one-child policy. If the trend continues, they are following Japan's rapidly aging population and not enough young workers to support them. Question is can the Chinese families afford to raise a seco…
@VintageFreak, sometime I feel the same as I age. That is one reason I invest in myself in learning new skills and ready to move on elsewhere.
..afraid to lose my job
@TSP_Transfer, thanks for the article. Didn't realize that one child policy will affect future growth similar to that of Japan. At least, Japan has advanced robotic manufacturing capability for high valued products, whereas China is heavily rely …
@Lewis,
many Americans are now salaried employees who work well beyond the traditional 40-hour work week.
These exempt employees are also exempt from over-time as well. Like you pointed out cell phones change the working scene. That is one reason …
Scott, I own Danaher for more pure play on their enabling process to deliver drinkable water on commercial scales. Not so sure with Ecolab - need more research. The part of where it links Nalco, a water treatment company that went through rough …
heated until it vaporises. The vapour is then condensed to get rid of small impurities, and clean water is collected
Think that is called distillation. Desalination from sea water is not cheap especially for large population.
@Catch22, All large firms are trimming back their pension plans and payout. This impact the retirees the most since many do not have 401(K) when they were working.
I entered the work force in late 90's when deferred pension plans were trimmed ba…
@VintageFreak, yes, they are FDIC insured ($250K limit per account). That was the first thing I checked. We did perfectly fine during 2000-2002 and 2008.
Money market funds work just like saving accounts, and pay very little. Nothing fancy. …
@little5bee, She left on her own to run a new fund. I read that she would expecting to succeed Dan Fuss as he retires, but that was not his plan. There are already two other (more junior) co-managers, thus the transition plan is to be more team-m…
@Old_Skeet, If you examine the portfolio and compare both funds, there is sizable differences. Ms. Gaffney's fund has more risks in terms of credit quality (junk bonds and convertibles) and local currency (EM bonds). Both sub-sectors did not fare…
@Old_Skeet. I couldn't agree more. I have had a small position, then sold it all as I do not like her risk exposure just to juice her record over her former co-manager, Dan Fuss.
That is actually the worst scenario. Finding another flight on your own at busy airports is rough. Most likely they have to pay full fare that $2700 may or may not cover.
@BobC, Keen observation on Kathleen Gaffney's Eaton Vance Bond fund-tough year!
Kathleen Gaffney's new fund EVBIX is having a terrible time of it, where her long-term average maturities are getting hammered.
Also having 30% foreign currency exposu…
Concur with MJG on his comment on bonds and negative correlation to equities. I would also add that forward with the higher interest rates environment, bonds will face considerable headwind with lower returns. One should still maintain some exposu…
He should take Warren Buffet and invest in boring index funds instead. Clearly benefit of diversifying risk applies to everybody, not just the average investors.
@STB65, vmvfx is available in the Admiral share with ER 0.20% and $50K minimum. That is a considerable saving in the long term. Question is does Vanguard charges the hedging at cost or close to it? Other funds such as Tweedy Browne Global Value h…
Petrobras is only the tip of an iceberg in South America. Their economy is heavily natural resource dependent and the global slowdown is impacting them badly than other EM countries, say India for example.
@msf, points well taken. I understanding currency hedging has its cost and thus produces a drag on total return. I don't think anyone know the direction of USD versus the rest the world currencies. Personally I am using both strategies plus index…
It is not the initial 25 bps that will be raised, but how fast the next hike and how much in the next few years. The market got to able to withstand these small incremental hikes if it has legs to stand on.
