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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
Think many now believe is no longer “transitory”. @lynnbolin posted in Feb’s commentary with several commodity funds to deal with the inflation - VCMDX (Vanguard) and EAPCX (Fidelity and Schwab).
Historically Harbor uses good subadvisors (for institutional investors) and changes them when necessary. Noticed that Harbor replaced an subadvisor, PIMCO on their Harbor Bond (Bill Gross used to run this fund since 90’s and left several years ago).…
Some Vanguard funds have one subadvisor, i.e. PRIMECAP and Wellington, while other have three or four subadvisors. Instead of replacing those don’t do well, Vanguard likes to add more.
Back in the 90’s, Litman Gregory launched a series of Master…
Thank you. Very timely indeed.
Invested in gold (Barrick, a miner) in uncertain time like now. The fund often hold small % of gold.
Invested in foreign stocks for lower valuation relative to US stocks.
Concerns about higher interest rate and st…
Our family are long time users of Mac computers, iPads, and iPhones and they work seamlessly together. At work we use a combination of Windows and Linux computers since they work better in a networking environment. We don’t use social media and pre…
Thank you for sharing. Must be quite a bit of selling to raise the 10 year Treasury yield to 1.9%. As of Dec 31, 2021, the yield was at 1.512%. That is quick rise of 40 basis points! It is important for investors to review the duration of bond f…
Explorer fund is a small cap fund. Having more subadvisors don’t necessary translate improved performance. Each subadvisor has their unique stock picking process and having 6 of them is already diluting the “best” ideas and trading off the fund’s …
I get all my 1099 forms online several days ahead of the paper copies. Also I get notified when the forms are posted. The brokerages take several more weeks and by mid-February I would have all of them. The tax statement and account statement are lo…
Ariel’s initial target allocation will be 10% of Vanguard Explorer Value Fund, with the balance of assets divided evenly between the fund’s two other tenured value managers.
Hopefully this will improve these value funds.
SGENX and VGWLX are value-oriented global allocation funds while PRWCX is more growth-oriented with a twist. Tough to replicate Giroux's approach in oversea investing.
At 1.25% (from the current 0.25%) is still a way below the 2% when the pandemic started in March 2020. In combination with tapering, perhaps it may contain the 6% inflation.
Atlanta Federal Reserve Bank President Raphael Bostic told The Financial Times over weekend that the Fed may impose a 50 basis point rate hike in March.
Saw that too in other sites and that could have sizable impact on the long bonds. Mid March is t…
@davfor, thanks for sharing your view. I too have made sizable changes throughout 2021 in order to lower the risk from multiple fronts: interest rate hike (inflation) and potential war (Ukraine and other conflicts). Will be patient just like previou…
However, I do see human irrationality playing a big part in the markets of recent years. That includes not only equities, but assets like real estate, bonds, crypto. And further, that uniquely human ingredient compounds the difficulty of determinin…
Thank you for confirming the data. Both financial and energy sectors are ahead of S&P 500 by several % so far this year. The short stock is labeled as hedged equities in D&C recent Shareholder Letter.
the Fund holds a short S&P 500 f…
The mechanics of buying (even when you have one million dollar) and selling does not work for many people. These are for institution and wealthily individuals.
For me it is more important to have competence active management and exposure to that …
That man set a bad example for being the leader of the country. Hopefully England will elect a new leader.
Read elsewhere that many small business in England are having serious problems selling their products in EU due to the existing commerce a…
@hank, I too notice that DODBX is up while the balanced index is down, +3.2% vs -2.3%. Will see next week if that is a typo reported.
I moved sizable investment grade bonds last year to floating rate bonds, ST HY, stable value and cash. There …
Don't know if you can consider CEF such as RQI in the same category as CPREX with respect to the risk-reward. RQI has done well last year just as the OEF such as VNQ. I maintain small allocations in FRIFX and VNQ.
Wonder if we are late in the business cycle for smaller cap funds? With the possibility of several rate hikes this year and supply chain issue, I reduced my small cap % late last year and moved to more defensive positions.
It appeared that international value funds are leading their growth counterparts this year. They trail growth style for over 10 years. Will they persist in the near term?
We are all guessing at this point. Best is to watch for new changes in the fund. Wish they just launch a new fund with different strategy from the other D&C fund. This fund is already quite large.
Often OEFs would broaden their investment mandates so they can open other space. Likely the balance fund would invest more overseas as it become a global balanced fund similar to that of VG global Wellington.
Think there is more to unfold in next several weeks. Ten year treasury yield is moving up since the beginning of the year and the bond prices are falling. The 10 year treasury rate jumped sharply from 1.512% on 12/30/21 to 1.780% as of today.
Th…
Value funds such as Oakmark lagged S&P 500 index which dominated by FAANG stocks for awhile. It is more appropriate to compare them using the appropriate benchmark, VG Value index as you noted. Will see how this plays out this year with rising …
Growth stocks tend to lag in rising rate environment. Thus, quality stocks will do better with their lower valuation and dividend such as DIVO, SCHD and dividend growth funds. This week the value funds dominated. Same trend also observed in overse…
Thanks for the overview of your thinking. I agree that higher interest rates this week affect many sectors of the market negatively, and left few pockets unscathed. Hope thing wills settle down in next few weeks.
Glad to see "transitory" term is…
Good funds but bad timing to hold them right now. Also there maybe already too much overlap; best to verify that first. YTD return on several of the above funds are already in red. ARTYX is down 7.9%, for example.
More important questions should …
Several companies are starting to increase the unvaccinated employee’s insurance premium by several hundred dollars per month. The carrot days are over. Now comes the stick! One can have their freedom, but they are not entitled to infect others wh…
The COVID drawdown was rough on many mutual funds, even treasury. Many were down 10-40% within 2 weeks. Nevertheless, this drawdown recovered quickly comparing to the 2008’s drawdown that lasted several years. Since then value funds trail their grow…
