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.
@msf said “Divs are a mix of return of capital (ROC), regular income, and UBTI. So UBTI is only a part.”.
That’s very encouraging. It the very high income distribution from some MLPs that led to my initial concern / question. From your comment …
@Graust, I think we’re on the same page. Some of these MLPs crank out double-digit interest (through dividends). Seems to be a big part of their appeal. That’s the part Some of that that may get passed through and not taxed at the corporate level.…
Thank you @msf
- Re “I'm not clear about what you find special regarding pass throughs in IRAs. Mutual funds are pass throughs. REITs are pass throughs.”
My (evolving) understanding is … with a traditional corporation the entity has already bee…
Unfortunately, it’s quite prevalent throughout Western Europe as well.
Takes many forms. Maybe this is unrelated - The right convinced the working class that “foreigners” were stealing their jobs. Barriers against immigration and foreign imports …
My heart bleeds for TRP!
https://seekingalpha.com/news/3822317-t-rowe-price-cut-to-hold-at-jefferies-as-fixed-income-flows-prove-challenging
https://www.marketscreener.com/quote/stock/T-ROWE-PRICE-GROUP-INC-40311214/news/Goldman-Sachs-Downgrades-T…
Spent 10 hours Wednesday in airports and on planes. Lesson: Bring a couple extra clean masks along. The same one starts to smell raunchy after 5-6 hours constant wear. Especially if you’ve been toting heavy luggage around. And the F…. air circula…
@Hank. Detroit guy here …
+1 My family moved to the Detroit area for a few years after I was born (roughly ‘48-‘52). Dad worked at Dodge Main and than the Warren Tank plant.
Can anyone remember when a nickel would buy a nice sized candy bar ?
@Derf Yes. I was 4 or 5. Could buy a very nice sized candy bar for 5 cents.
A quarter back than bought you a delicious ice cream soda, malt or banana split at Sanders in the old…
Thanks @bee - I suspect few need convincing at this point that inflation is real and not entirely of Mr. Putin’s making. But the detailed insights into various markets are valuable.
Some bio on the author from Linkedin:
“Frank Holmes is the CE…
The March commentary reads like Cathie Wood on steroids. Generational opportunity in the current portfolio. I hold out hope, but what a shellacking YTD! That being said, it's the type of fund that can make up 15% in a week.
And there’s nothing wr…
”Other way around. Treasury (and related) securities are exempt from state taxes, but with some exceptions are federally taxable.” Yep. Thanks! Guess I got it backward. Shoots holes in my theory than that cashing out an IRA wouldn’t have serious ta…
I believe @hank is just suggesting that instead of rearranging allocations, one could get the cash from bonds in a Roth without tax consequences.
That’s correct. I’m not aware of anything yielding anywhere near 9.5% guaranteed that one would be ab…
@msf raises a good point. However …
- One could invest all of their non tax sheltered money in I-Bonds.
- One could pay taxes early on tax-deferred money to buy I-Bonds were the cap removed.. They’ll owe taxes on that someday anyhow.
- One c…
Shakespeare said, “What’s in a name?”
But on closer examination, that’s a horrific YTD return, likely made worse by rapid outflows. Reminiscent of something similar here involving MFLDX many years ago. Rats fleeing a sinking ship. My heart go…
GLDB (etf) has had a couple good days after a miserable stretch. Still down 3-4% YTD. Only consider it if you like both gold and longer IG corporates. I’m neutral on gold and the miners. Very hot recently, which is a bit scary. But % wise my expo…
“Outflows from MM funds is an interesting phenomenon when total outflows from MM plus bond funds together constitute 50% more than the inflows into equity funds. And working folks are constantly earning new money and so, I expect MM funds to continu…
The only munis I follow are the short-intermediate high yield ones. IMHO they are bottoming right now. PRIHX will be off nearly 7% YTD after today’s small drop. Depends on what muni(s) you own. But, generally speaking, states are flush with cash…
(A Guess). I think the Fed will retrench a bit and only raise the overnight lending rate .25% instead of .50% at their next meeting - May 3 & 4. Reason: I think by than the much higher rates we’re witnessing will have begun to slow both the eco…
Wow. That’s a hellofa rate. Traveling. Will digest when back home.
ISTM other sectors of the lending market will need to adjust. Less than sterling borrowers (lower rated and junk) should have to pay a very high rate. In fact, wonder if this will …
Thanks @wxman213 for a thoughtful post. Somewhat echos my comments this morning in Larry’s “Teach your children well” thread.
I don’t think there’s only one way to invest. But your post does help explain why a few of us haven’t dumped our bond fun…
Good post. My underlying philosophy says that selling when something is down “locks in” a loss and rules out benefiting from eventual reversion to mean. I almost never do that unless I’ve made a relatively recent misstep and decide to reverse cour…
We had a pretty good discussion about this fund a while back. Here
If you liked FMSDX when you bought it and if those reasons are still pertinent today, I don’t think I’d sell. However, that’s not intended as investment advice. I checked another …
@msf - First, thank you for your detailed response and for all the dedicated work you do at MFO. Folks are fortunate for your labors.
I believe that you and others are making lots of assumptions. Nothing wrong with that. So far, over the past 3 o…
“We have recently been DCA'ing into the iconic FSELX - Fido Semis, DOWN ~22% YTD”
+1 / Makes infinitely more sense to me than buying something that’s up 22% YTD as some appear to do.
I could move some of the money in PRIHX into I Bonds. But I’m not moved to do so. Don’t like selling at the bottom. Very little committed to cash. Less than 8% of entire portfolio presently. Cash facilitates my (too frequent) tactical moves. Wi…
:) Must be tough not knowing what to do with an extra $1M ...
I’ve stayed away from this vehicle not wanting to restrict my fixed income investments in any way. Probably dumb on my part, as 7% today is kind of like giving candy away. But I value…
I still print and mail everything. Plan every year to owe just under $1,000 (federal) which I cover with a single check. After the Roth conversions, however, I printed out a bunch of IRS payment coupons from online and mailed them along with a che…
- Baron talks a good game. The “slow and steady” investment approach works, provided one has (1) the time horizon and (2) the patience. The latter can be learned. The former cannot.
- Re Elon Musk: It’s been said, “There’s a fine line between geni…
From Saturday’s WSJ:
“Walmart is paying up to keep on trucking. The retail giant is offering truck drivers up-to-$110,000 starting salaries and expanding a training program that enables its employees to enter the field to grow its in-house fleet.”
…
Doubled down on DKNG at $16.50. To make room, sold CVSIX. Moved GLDB from spec position into fixed income sleeve. With the 10 year above 2.7% I believe longer dated higher rated corporates (GLDB) are beginning to look attractive as offsets to a po…
Here's a tiny bit of anecdotal information from someone within the industry that provides some perspective on recent inflation affecting groceries. The source of rising prices identified here is not necessarily what I would have expected:
“I would…
If you can look past that 25.62% drop in the first quarter of 2020, it’s had a nice run. Generally, commodities performed even worse than the S&P & other major equity indexes during that quarter. Canada? Think lumber, oil, precious metals…
I'm going to put an order in tomorrow for ARB, but the etf may be too illiquid for Fidelity's taste !
I sometimes buy and sell funds Fido terms “illiquid”. (GLDB is one.). When you begin the process, Fido will display the latest “bid” and “ask” …
Itching to buy something ...
Blood starting to trickle in the streets ...
Thinking ...
There are too many catalysts in the near-term to go whole-hog on the long side, but DCA'ing into positions during volatility drops over the near-term should…
Hats off to VWINX. I don’t own it, but if my tracker is correct it lost a penny today - a negligible amount on a day when bonds were hammered. Cripes. DODBX outperformed DODLX today!
