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.
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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
England needs to hold a general election. How can the country had 5 prime ministers in the last 6 years ? Lewis B is spotted on Britain's resurgent nationalism .
https://newyorker.com/news/our-columnists/after-liz-trusss-resignation-britain-urg…
Elon Musk plans to cut 75% of Twitter staff if he takes over company. Is it good for Twitter stock, users, and their investors? And that is a clown show.
https://theguardian.com/technology/2022/oct/20/elon-musk-twitter-staff-layoff-takeover
It would be premature to get excited when November and December rate hikes are coming. 75 bps hike is highly likely for November and 50 bps hike is predicted for December. 10-year treasury is now over 4%, the highest level for the year.
I agree that holding cash or short term bonds would be a lot better, but that is hindsight. Investment grade bonds are down 14% YTD and there are two more rounds of rate hikes to go this year. Until the Fed starting to reverse the course and cut ra…
Credit card business is a very profitable business with little downside risk. That is why Visa and Mastercard stocks are commonly held in growth mutual funds.
Think the transaction fees have gone up from 3% (Visa and Mastercard). Now the credit…
That is the point. Without thorough auditing on Nikola’s book, how can investors trust the stock? Otherwise, it is nothing more like smoke and screen.
BTW, this case shares similarities to that of Theranos, except it is privately held.
Remember Arthur Andersen who was the auditing firm for Enron.
https://hg.org/legal-articles/the-fallout-of-arthur-andersen-and-enron-on-the-legal-landscape-of-american-accounting-31277
Will Ernst & Young face discipline from SEC?
The market carnage is far from done. So there will be better entry points down the road. I am surprise that analog semiconductors are still in tight supply today. The inventory should has been built up since many fabs were closed during the pandemi…
@Observant1, thank you for the great summary on Giroux’s interview.
His timing coming into 2022 is impeccable with his positioning of the portfolio.
He repeated “recession” several times even though he does not believe it. However, moving 10% of …
I stated “if” in my statement. Otherwise, the burden of proof falls on the claimant. Don’t know much about the allegation other than what is in the news. Think the rape case is closed since it was in the 90’s, unless she has physical evidence.
T…
No, never had issue on foreign tax credit. My foreign tax credit is quite small.
What will you do differently in your 2022 tax filing in order to avoid this foreign tax credit issue? I have been filing electronically for many years and have no …
Boy, this guy reminds me of Richard Nixon, I am not a crook!
Manhattan, prosecutors told the jury that Mr. Milton was a con man who duped ordinary investors into buying Nikola stock, making himself a billionaire in the process. They said he fueled…
All these large tax cut largely benefit those who are well-off at the expense of social programs. Is the British’s Labor party any better for the average citizens?
I invested with David Herro’s Oakmark International fund back in the 90’s, but found better substitutes since then. Herro’s concentrated approach, often in financial sector, has volatile swings in both directions. Not my type of investing as the f…
As usual, he will use the same tactics of running out the clock if he runs in 2024. If the claimant has physical evidence, Trump’s DNA on her clothing, a criminal case would be file and he cannot escape. Having to testify is humiliating at least.
As of yesterday, bond and stock indices are down 16% and 22%, respectively. So the 2022 data point should move a tad lower that where it is indicated. Few alternatives are in black and many do not rely on just the traditional stock and bond alloca…
@BenWP, my deepest condolences to your loss. I didn’t mean to make thing harder for you. @yogibb got a reasonable approach to correct the matter with a letter.
Sounds like TD is really clumpy. Here is what is stated on TD for changing banking information:
To edit an existing bank account, click the "radio button" for the bank you wish to edit and click the "Edit" button.
The ManageDirect >> Bank Ch…
Thank you. Good to see several managed ETFs are doing quite well comparing to that of VTI. Just verified that the factor-based ETFs are managed by Vanguard quantitative equity group.
@MikeW, the stable value fund I use is a private fund offers through my 401(k), not assessable for the public. For alternatives, I invest in PRPFX after I replaced TMSRX and IAU last year. Also I invest in GPANX (multi-strategies) and PQTAX (manag…
Thank for sharing your alternatives. I too invest in PRPFX after I replaced TMSRX and IAU last year. Also I invest in GPANX (multi-strategies) and PQTAX (managed futures). So far they are holding up much better than those from PRPFX and TMSRX. My …
Hiding out is a good way to put it! I too have high cash and they are distributed among stable value fund, ladders of treasuries and CDs. Energy sector funds, ETFs and commodity futures have worked so far but they are volatile. Increased allocation…
New rates on 11/1/22 should be lower. Variable inflation has moderated but fixed rate may be raised above 0%. Estimates are 6.278-7.825%.
That is still higher than long term treasuries without taking on sovereignty and credit risk with emerging ma…
Very insightful data. Tax loss harvesting could account for the switch for large outflow from TRBCX and HCAIX, to VUG.
Question is where does those outflow $ went to when bonds performed poorly this year? Alternatives and treasuries?
Thought everyone, not just you, are having hard time on the equity side. Same goes for most bonds. I thought you are investing in alternatives, and some of which have held up ok. Our MFO contributor, @lynnbolin2021 has a very nice article “black …
Earlier this year I replaced a portion of core bonds with 6 month treasury since they are in the sweet spot for the yield. I built a ladder using the weekly auction ( on Monday) so to capture new treasury as the yields increase; also hold them to ma…
@yogibb, thanks for the summary. Noted that a number of AQR alternative funds such as QMHNX, have done well this year. Even with their investor shares, the investment minimum is $1M for aggregate investors, not so much for individual investors. P…
Good points. That is one reason we favor shorter duration CDs and treasuries. Going beyond a year is a bit too long for us. Money is locked in CD until maturity. A ladder of shorter term CDs will ensure fund will be available periodically.
Ther…
They are yielding a bit higher to compensate for the higher risk (being callable). JPMorgan’s CDs are often callable too. The risk is the interest rates suddenly drop which is unlikely in the next 12 months.
If inflation persist for next several year ( likely > 2% annually). iBond may provide a respectable return when it ties to the CPI.
I am using iBond for my kid’s college education - tax free. Much better than money market of his 529 plan.
…
NATO is preparing themselves just in case the situation worsen.
https://msn.com/en-us/news/world/nato-warns-of-mobilization-of-russian-submarine-belgorod-carrier-of-the-weapon-of-apocalypse/ar-AA12vpsX?cvid=1dcd883973db432a84a066cc0d7ce7bd
