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.
Hank is right in drawing a distinction between the years up to the mid 90s and the time since then. Though I would say that the key difference between then and now is regulation.
Utilities were heavily regulated, vertically integrated companies. …
I heard that line late one night. or early one morning, at the Marina Safeway towards the end of the 90's. One stocker talking to another: "If they start to go down, you just sell."I have a friend who used to live a block from there. Gave me a nic…
These may be the first ETFs to wrap this sort of strategy, but vehicles using it have been around "forever". See, e.g. principal protected notes, market linked CDs, indexed annuities, etc.
The particular strategy you described (provide protectio…
Unfortunately M* has been off for years about PIMIX. I downloaded the last PIMCO+Bond+Stats+2023+06.xlsx from Pimco.
M* uses all the SEC filing information to present exposure by asset class. PIMCO mechanically sums market value figures, disregard…
It's not all that unusual for new funds to be closed from the start "subject to certain exceptions" (quoting the preliminary TRP prospectus). Often it is to restrict those funds to internal use.
Vanguard was a little clearer when it launched its …
Hedging in the classical sense means protecting against (major) losses - think insurance.
The "protective put" mentioned above is a good example and can be analogized to collision insurance. You pay for collision insurance (a stock put). Withou…
let mfopremium free quicksearch be your friend here ! Quicksearch is great at finding funds that aren’t available for purchase by mere mortals.
Uh, https://www.statefarm.com/finances/mutual-funds
Dig slightly deeper: https://www.statefarm.com/financ…
@msf- OK, just to display my complete ignorance, what exactly is an "AA fund" that Crash is looking for?
Thanks/OJ
Short answer: Asset Allocation.
Slightly longer answer was given in this thread by @LewisBraham, who noted that AA can be static (th…
Firstrade is definitely good at providing access to share classes that are not available elsewhere. Such as T. Rowe Price class I shares (including closed funds). Access to oddball/institutional share classes is the reason why I've used Firstrad…
PRWCX is NOT closed. I purchased TRAIX which is the institutional form of prwcx last week at Firstrade which has a minimum of $ 100. to purchase. Sorry ,but not a myth! If you have an account with them you would have to look it up in your account. I…
PRWCX is closed to new investors, so I don’t know why people keep recommending it.
A few reasons:
1. It serves as a benchmark
2. It may be open to investors in 401(k) or other employer-sponsored plans that include it as an option
3. It is open t…
Does TRP treat "regular" 401(k)s differently from solo 401(k)s? I can't say.
I guess you mean you were the only one covered in the 401k? I had the same sort of 403b with TRP. Then, yes, I was able to roll it over into an IRA, when I wanted to do so…
If one has $250K or more invested at T. Rowe Price, one can invest in PRWCX. To help meet that threshold one can include the amount planned for PRWCX by first moving cash into a TRP MMF.
There is a commonly held perception that if one transfers a …
Gosh, this is a stodgy old board!
Not at all. Several people on this site have suggested 100% (or near 100%) equity portfolios for young people. But those recommendations came with the proviso that the person had an emergency fund, or perhaps t…
The article talks about people lowering their standard of living, canceling gym membership, eating out less, ect. That's how to reduce inflation? By pricing a different basket of goods and services?
That's the way supply and demand works - reduce …
My 2009 Toyota pickup will just have to make it to the end. $42,000 repair- how long does anyone think that insurance companies are going to put up with that kind of stuff?
Others have stated that $42K repair is an outlier. As to the question of …
From the EXPLAINER piece:
A special rebalancing, which is part of Nasdaq 100's methodology to maintain compliance with a U.S. Securities and Exchange Commission rule on fund diversification ...
The special rebalancing may be conducted at any time i…
I've never contributed to Wikipedia, so I haven't tried straightening out the page(s).
It is possible to parse the original wording in a way that makes sense, so I would call what was written poor wording in part. That is, the index rose a lot …
If you gain 800% and then lose 740% of that gain, then you're still way below zero. Impossible.
Starting with $N, you gain 800% ($8N), so you have $9N.
You can't give back more than $9N or 112.5% (i.e. 9/8) of the $8N gain.
740%? No way. Unl…
[snip]
”The automated essays "analyzing" those funds where the "Q" is used is utterly comical.”
Yes - They sound computer written. There’s an uncomfortable “sameness” to the composition. They seem to rely a lot on total years of experience of a fun…
"740% drop in the NASDAQ from its earlier high"
Don'tcha just love Wikipedia? A long-only portfolio cannot drop more than 100%. What it means to say is that in 2½ years (March 2000 - October 2002) the NASDAQ composite gave back 92.5% of the gain…
You could save the trouble and buy just about any CEF if you enjoy the volatility. Down 30% and than up 40% not uncommon. And the manager does all the buying and selling for you … typically for a 3% cut - give or take.
You may be thinking of th…
WSJ article quoted: https://www.wsj.com/articles/read-the-ingredients-before-buying-this-25-billion-etf-2e9b279d
The excerpt in isolation is a bit confusing: "This should have been a great year" for contrarians. The wording suggests that the past …
The minimum to open FZDXX in an IRA is $10K, otherwise it is $100K. See summary prospectus (this info isn't on the fund's web page).
The minimum amount Fidelity expects you to keep in FZDXX is $10K, even for a taxable account. I've been told tha…
I've become accustomed to their use of the "weighted harmonic" beast. Surely, they are not the only ones doing it.
FWIW, a SeekingAlpha piece asserts:
Most institutions like Morningstar calculate a fund's P/E by taking the harmonic average of the …
Aside from various ways of handling outliers as Yogi described, there are a couple of different ways of calculating the average P/E. One is by taking a simple (weighted) arithmetic average of the P/Es. Another way, IMHO more meaningful, is to tak…
A danger in many myths is that they contain a kernel of truth. Individual participation in the stock market really took off in the 1990s. "Everyone" invested in the stock market and so they shifted focus from the size of their paychecks to how t…
Notice the conflating of the stock investing with all security (including fixed income) investing:"mutual fund assets jumped ... The charge was led by money market funds"
That leads naturally to the matter of pensions. Agreed that after 1981 pens…
if I recall properly, 403B's were pushed by lobbying groups of the insurance companies to become part of the IRS code. 401k's came later.
College contributions to participants’ annuities have been “before tax” dollars to the individuals since the s…
M* has set the chart tool to use monthly frequency for longer periods, viz. five years and max.
If that's what's happening to you, then before you enter your dates change the chart frequency back to daily. If you do that, the chart should accept …
Thanks for the update.
3. I wondered about the "analyst" ratings when I saw that nearly all funds had them. Now I know - as far as M* is concerned, analysts can be replaced by a computer - no asterisks ("Q notations") needed.
Here's M*'s pap…
The old screener enabled one to select on many criteria, including 5 year trailing percentile ranking. The new tool (I hesitate to call it a screener, with so few screening criteria) returns 452 share classes of moderately conservative allocation …
Notice the typical IRS equivocating language: certain rights or benefits. Not all.
Here's the 12 month rule for intangibles:
Paragraph (f) of [26 CFR § 1.263(a)-4] provides a 12-month rule intended to simplify the application of the general pri…
@Derf - the links I provided (Baird, Tax Adviser) have pretty clear examples. Here's another page that's especially example-oriented.
https://thismatter.com/money/bonds/bond-income-taxation.htm
It has a section entitled US Treasuries that starts:…
You're right about how the credit for accrued interest paid should be declared. My error. Typing too fast.
It's your option whether to declare the imputed interest from market discount annually or upon sale/redemption. Instead of recognizing o…
Performance is less stable than SD, so both Sharpe and Sortino Ratios are also less stable.
True enough.
Though here, PRWCX has had better risk adjusted return figures for all 10 decade-long periods (the duration used in the original article) fr…
Fidelity reports the amount of interest you receive from a bond issuer, whether the US Treasury or anyone else. No more, no less. Welcome to the world of bond investing.
Five months interest was paid in your name that belonged to the seller. …
It's easy to beat PRWCX on a raw return basis. VOO/VFIAX will do. The question is whether you can do it with an only moderately volatile investment.
VOO beats BRK.A over ten years with less volatility. Thus a better Sharpe ratio (higher returns…
