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@TheShadow, interesting about large CG distributions for SSGA index funds:
SP500 Index (Class N) SVSPX 7.51-8.30% (Classes A, I, K have much lower CG distributions; these must be for a different series/pool)
Hedged International Developed Index (cl…
@Crash, I buy only I-Bonds at Treasury Direct (TD).
I buy Treasuries in brokerage a/c at Fido, Schwab, and now also at Vanguard (now that it forced me to switch).
There is an additional issue with buying Treasuries at TD - you cannot sell them be…
Set up 52-wk T-Bill ladder by buying 13-wk, 26-wk, 39-wk, 52-wk all in the secondary market.
Or, near the month end, buy 13-wk, 26-wk, 52-wk at Treasury Auctions & 39-wk in the secondary market.
As each matures, roll into 52-wk T-Bill.
Cashfl…
@TheShadow, that is a long but good list. I scanned it for "stories" - index funds and funds-of-funds (typically of index funds) with large CG distributions. Index funds with large redemptions can have this problem. I wasn't disappointed.
Fido Real …
Yesterday, CME FedWatch wasn’t updated fully. Today, it is showing hikes of 50-50-25-25 (and moving around that) to the fed fund terminal rate of 5.25-5.50%. This is BAD news for both stocks and bonds (as if things weren’t bad already. Good seasonal…
Interesting that Powell mentioned that the Fed prefers to watch 3mo-18mo yield spread. That is a nonstandard spread vs those used in media (3m-10y, 2y-10y, etc).
Does this mean that only those who purchase after Oct 31, 2022 get the benefit of the 41 bp fixed rate addition? The rest of us get only 6.48%.
Yep! The fixed rate at purchase remains forever (well, 30 years).
That fixed/base rate is low at 0.40%, IMO. The 5-yr TIPS/real rate is 1.60%. The 5-yr TIPS looking a better deal (next auction 12/22/22; buy anytime in the secondary market).
It is a different channel with different pricing/promos. Brokerage CDs are expensive (when you factor in invisible platform fees of 0.35-0.50%; your quotes are net) but fast way to raise deposits. Many lesser known banks use them and the FDIC and th…
Legally, only Vanguard ETFs can be classes (twins) of Vanguard OEFs. Others may use similar names and may point to manager overlaps to have cousins/clones. VG patent is expiring soon, so others may follow, or not bother.
Strange that JPMorgan doesn…
I picked out 5 representative samples to plot,
https://stockcharts.com/h-perf/ui?s=IEF&compare=AGG,HYG,LQD,TIP&id=p78281312714
However, the CME FedWatch, based on the fed fund futures market, shows 75, 50, 50 bps hikes ahead at Nov, Dec, Fe…
Brokerage CDs aren't liquid & getting out of them early may require decent haircuts.
Stick to liquid Treasuries if selling early is even a slim possibility.
Generally, these instruments (Treasuries, CDs) are to be held to maturity.
Stuff happens! But it wasn't a big mistake.
In the Treasury purchase section at brokerages, the Auction and Secondary clicks are clearly indicated.
It seems that unintentionally, you went into the Secondary section, and bought what you thought was…
Vanguard Order Status Screen
Took me a while to figure out that Treasury Auction orders at Vanguard are shown right away only in the special area Trade Bonds & CDs order entry area, and NOT in the regular Order Status screen (they were shown af…
For sticky inflation (the sticky part of inflation), the rolling 12-mo changes don't show any trend changes yet.
https://fred.stlouisfed.org/graph/?g=Vhjj
Fund Allocations (Cumulative), 9/30/22
There were notable declines in the stock and hybrid funds. The changes in the totals were based on a total OEFs & ETFs AUM of about $29.05 trillion in the previous month, so +/- 1% change was about +/- $29…
What happens at month 6? Are there not requirements to hold 1 year and 5y for no early-withdrawal fee?
12-mo/5-yr restrictions remain. At the 6 mo from the purchase date, only the rate will adjust to then current rate.
There are media reports that…
Have you noticed that Morningstar lists the PrimeCap Vanguard funds status as "open," while Morningstar Investor lists them as "closed" ?
Poor editing.
3rd line in M* Analyst - Summary, "...The fund, subadvised by Primecap and closed to all investo…
I helped a friend buy Treasury (ladder) at Fido and Vanguard. And I have bought Treasuries at Fido and Schwab. Each has its pros and cons. One good thing with Vanguard was that the Treasury ladder could be named, saved and accessed for analysis or f…
I have Paxlovid box & insert. It is a combo oral and each dose is:
300mg nirmatrelvir (2 x 150mg) - it is the Covid antiviral. It interferes with the process of Covid replication in other cells. So, Paxloid must be started within 5 days on ini…
My long-term logins continue to work from PC and Android phone. But I won't test issues by M* logoff and login.
There are separate logins,
M* Discussion https://community.morningstar.com/s/discussion-categories
M* Home https://www.morningstar.com/
Paxlovid seems an effective medication. It is by prescription but is free from government or from health insurance. I don't know, how much Pfizer gets paid for it although I read somewhere that it would sell it for $530/box (5-day course) list.
It…
Thanks for well wishes & suggestions.
Will give Cinnamon Red Hots candies a try. A relative is coming tomorrow to drop some meds & supplies at the door. Will ask her to also stop at the nearby Walmart.
We were waiting to get the new bivale…
Paxlovid seems an effective medication. It is by prescription but is free from government or from health insurance. I don't know, how much Pfizer gets paid for it although I read somewhere that it would sell it for $530/box (5-day course) list.
It…
Treasury Direct FAQs say that Friday October 28, 2022 will be the last day for the current 9.62% rate. Beyond that, lower November 1 rate will apply.
https://www.treasurydirect.gov/help-center/savings-bond-faqs/
I had planned some transactions for October and I got them done by last week. Some were minor tinkering. One move was higher allocations for multi-asset funds (FMSDX, VPGDX) with money coming from some traditional allocation funds.
This bounce coul…
Keep in mind that the 30-day SEC yield is the PROSPECTIVE yield (one in the bush) and it crazy good due to a historic selloff in the bond market (worse for global bonds). Off course, strong dollar piles up on that negative return.
https://ybbpersona…
Current Barron's has a Q&A with David Hero. LINK1 LINK2
David HERO, Harris (international CIO; OAKIX). There are attractive values in EUROPE and CHINA (several big Chinese companies have dual-listed in the US and HK). Rising dollar is a headwin…
PM Truss resigned.
If BJ comes back, that would give a new meaning to recall.
https://www.cnbc.com/2022/10/20/uk-prime-minister-liz-truss-resigns-after-failed-budget-and-market-turmoil.html
YB-Let me try - Cusip - 912796ZU6 UNITED STATES TREAS BILLS ZERO CPN 0.00000% 02/14/2023 - asking 98.6860 ask yield 4.155 what will I get when it matures on 2/14/2023.
Thanks,
D
T-Bills are sold at discount. So, you buy at $98.686, get $100.00 on…
@kings53man, the secondary market for Treasuries is huge and liquid, so bid-ask spreads are tiny, unlike those for corporates and munis.
I do prefer buying Treasuries at auctions, but I was saying that it is easy to START a Treasury ladder by buyin…
All branded or unbranded gasoline comes from the same regional distributions centers (to which it is pipelined unblended to avoid corrosion in the pipelines). The magic formula/mix/branding is done for the tankers.
I pass by such a distribution cen…
