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.
Fair question, Burt. The answer is pretty simple, really. I do not trust the person in charge. There is a difference between not liking a manager and not trusting a manager, and I just do not trust Mr. Gundlach.
Mining stocks have lagged the price of bullion big time. At some point, this disconnect will begin to correct. There have been some M&As in the miners over the last few months, with the larger companies buying the smaller ones for their known …
We are pretty basic in our bond allocations. For mostly-domestic exposure we use OSTIX, LSBDX, and BSIIX. Use some JBGIX for broader exposure. TGBAX, GSDIX, and GIMDX round out the foreign bond holdings. In Fidelity accounts, it's hard to ignore…
It is relatively easy for Goodhaven right now. The fund is new, when there is typically a lot of cash ready for investment. I am not ready to give it a green light, and would compare its numbers to something like Forester Value FVALX going forward…
Not addressing the MetWest launch specifically, but unconstrained bond funds are all the rage now. Just as every fund group has or will have a global allocation fund, imitating Ivy Asset Startegy and others that have been around a while, there now …
You ask a very good question, rono. My perception is that more individuals than ever before are what we call "in the market", if for no other reason than the fact that pension plans are becoming extinct, forcing individuals into 401k plans if they…
I have read some of this in the past. My preference is Dundee Wealth's Gold Monitor and Financial Monitor. Also out of Canada, it has Martin Murenbeeld's keen insight and commentary. He has been a gold bug, but his observations are usually very o…
FWIW, I think the volatility has very little to do with the average investors, and their knowledge of economics and world events. It has a lot to do with hedge funds, program trades, and the instant-ness of rumors and news.
More than a few left me thinking "what???". They seem incredibly slow and/or hesitant to make changes. And the diversification is rather restricted, given the many good alternative strategy options now available. But what the heck...
It's not unlike the bond/CD/fixed-income vs. dividend-paying stock decision domestically. The difference, and PERHAPS a significant one, is that EM sovereign bonds pay significantly higher yields than comparable US govt bonds. One of the issues is…
For sure, we will likely never know the whole story of how DoubleLine came to be. But clearly there were ethical lapses, some of which seem pretty big (sneaking data out of the office in a person's underwear???!!!) and stupid. Are there problems w…
Of course there are risks. On the other hand, Michael Hasenstab wrote an extensive piece on emerging market local debt that suggests it is an appropriate diversifier away from the dollar, and that countries that are in stronger financial condition …
The "pope" is touting the monetary award as vindication, but that is simply an award of wages due the people who were fired. The much bigger issue is the finding that the "pope" and his cohorts stole trade secrets and data when they left to form th…
For those investors who are considering working with and advisor, as well as those who do, I would urge all of them to ask the advisor to show them what THEY are invested in. Understandably, the specific investments and allocations will vary from a…
While 10-year numbers are worth considering, I really don't include them in my screens. A lot can happen between 5 and 10 years, as we have seen from many funds, including Dodge & Cox. I look at 1, 3, and 5 year numbers, and I also look at ran…
It's how the folks in Washington decided to help pay for the health insurance legilastion that was rushed through Congress. There are many other "interesting" parts of the legislation that are only now beginning to get some public scrutiny. While …
Yes, we use that concept a lot, but not necessarily in the same asset class. We like FVALX for its low volatility, but some clients will find it too timid during bull markets. So we will pair it with more aggressive WMGYX, WSCYX, DEFIX, even RBCGX…
Hussman may be right this time, but he has also been wrong. While I enjoy his commentary...it is well-written and entertaining...he has been a bear for most of the last three years and has underperformed compared to the long-short funds we track, s…
I think there is an equally logical case for a 49% gain in stocks. It all depends on what statistics you look at and how you interpret that data. I'm not saying either extreme is likely. I prefer to look at the glass as half-full, although it's g…
Good people in this fund company. Consistent management style and philosophy. Maybe the best option for a truly low-volatility large cap fund. It was just about the only US equity fund that did not lose money in 2008. We use it in appropriate ac…
Hi Cathy
I have sent you some suggestions via e-mail. All of the comments from posters are germaine, and there is much more than just investment decisions to be considered. It is a unique and non uncomplicated situation.
For all of us who have hired Mr. Hasenstab, say a little prayer for his continued good health. He is the reason for the fund's success. Yes, Templeton has a good shop to assist him, but it is his insight and leadership that has resulted in the ter…
There are a number of options in the go-anywhere bond category in addition to Mr. Gundlach's fund. These include Loomis LSBDX, Artio JBGIX, BlackRock BSIIX, and Osterweis OSTIX. Using a combination of 2 or more seems to make sense to me, especiall…
Sounds to me like this could look something like INOYX Ivy Asset Strategy New Opportunities Fund, which started last May. At present, it has less than 60% in emerging markets, according to the most recent M* data. Depending on how Templeton struct…
Don't overlook OSTFX (Osterweis Fund), DGAIX (DGHM All-Cap Value). Both have management teams with strong histories and very consistent, conservative philosophies working with private/family dollars. We use both of these.
The short time I have been around Mr. Gundlach tells me he is probably brilliant and probably a good fixed-income manager. But that short time also indicates a very, very short fuse, an incredibly expansive ego, and a take-no-prisoners attitude tow…
The biggest outflows were during the 2008-2009 meltdown. Some of those folks vowed never to return to the stock markets. The recent volatility will only confirm their decisions. Those folks not only lost a lot in the selloff, but they will probab…
C-class shares are the bane of the industry. Unlike B shares, they never convert to A shares. So the investor is stuck with paying outrageous 12b-1 fees forever. And if the salesperson indeed described these as no-load funds, that is fraudulent.
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You are right, Vintage, that large pension funds, insurance companies, etc. will own long-term government bonds. My comment was directed to individuals. We have a client in his late 70s who insisted on buying a 30-year treasury last year...for the…
MEGAX or MEGIX is a fund that you must completely ignore the history prior to 2008. It was re-constituted in the prior year, with all-new management, as well as a new investment strategy of global infrastructure, with an hefty emphasis on non-U.S. …
I would never put Dan Fuss and Kathleen Gaffney in the same camp as Gross and Gundlach. Dan and Kathleen are not media darlings, they don't seek out every camera, and they certainly do not pontificate in the way that Gross and Gundlach do. While I…
I would never say never. But it would seem very unlikely that bond funds, as a whole, will tank if there is no agreement. And there will be an agreement eventually. That being said, I don't know why anyone should own a long-term, long-only U.S. g…
rono, you are on much the same wavelength that I am. We had a client in yesterday because he was nervous about the debt ceiling issue, runaway spending, funding issues for Social Security, etc., etc. "Should I make any changes?" Our response is t…
JP Morgan is almost 50% bonds, which is neither bad nor good. But it may not meet the test as a global stock dividend fund. Current allocation is about 50% bonds, 28% foreign stocks, less than 20% U.S. stocks. It's a different twist, and of cours…
Jane Bryant Quinn....hard to believe she is still writing. This article is full of strange, "rule-of-thumb" advice. Investors are individuals, so for someone to say retirees should have 30% in stocks, or (even worse) put everything in TIPS, is jus…
I always remember that I am hiring managers, not buying funds. Unless you go with index funds, you must keep that thought foremost in mind. Great managers will have some periods of underperformance. I have never found one that did not. But great…
Because Latin America funds tend to own much of the same stuff (and let's be honest, these funds are pretty much Brazil funds with a smattering of Mexico, Chile, and Peru), we have gravitated to iShares S&P Latin America 40 Index - ILF. The per…
I would agree with the suggestion of Thornburg Income Builder. We have owned it since shortly after it began operations. Quality management, ethical firm, and strong adherance to strategy.
