DSEUX / DLEUX That article is 10y old. I think we probably are close to violent agreement. I do not argue against diversification in principle, and have been reading about the Lazy portfolios forever, longer than my following Israelsen, which has been a long time also. Defa likewise. I also hold no particular brief for Waggoner, and even he does not push the point too strongly. The thread got diverted because someone introduced EM a la DL.
So my point was only that foreign has not added a lot good or value for anyone's US equities portfolio in a looong time, which is indisputable. (See Bogle.) Whether one should do it anyway is almost a separate question, and based on their beliefs. When DLEUX becomes available to my accounts, assuming it does, I will certainly throw some money at it. But DSEEX / CAPE / auto-rebalancing SP500 does fine for many, has plenty of foreign exposure built in, as does say FLPSX, and therefore adding more foreign is a personal choice, as you say involving risk tolerance. If I were interested in rulebook quant approaches I would do Vang total market or total world approaches, or one of the handy AO_ family, as I have posted about before (AOA, AOR,AOM, AOK).
DSEUX / DLEUX Two different funds are being conflated here now, a DL EM bond fund and their new CAPE-like auto-value-trading DLEUX / DSEUX one.
Bond Market Is Ridiculously Oversold – Jeff Gundlach PTIAX
Performance Trust Strategic Bond Fund
4Q 2016 | COMMENTARY
While interest rates and spreads have waxed and waned somewhat since the crisis, volatility has been relatively mild, and the xed-income lands
cape has not changed fundamentally since the Fund launched in 2010. Consequently, our opinion on where value lies within fixed income has not changed much. Someday it may, but we’re not there yet. We still believe that seasoned non-agency residential mortgage backed securities (RMBS) offer more yield with less real world credit risk than any other sector in the fixed income space.
Static Structured Credit “Portfolio Defense” Allocation Performed Well During Rate Rise
Increased Tax-Exempt Municipal Allocation
Tax-exempt municipal bonds became particularly attractive post-election after the sell-off in bonds. After interest rates rose, we saw tax-exempt municipal bonds as the most effcient way to lock in higher rates
http://ptiafunds.com/documents/ptiax_commentary.pdf
DSEUX / DLEUX @davidrmoran,
I listen to Meb Faber's podcasts, which are flat-out excellent. He is very down to earth and in no way is he influenced by celebrity. In show #36, he was particularly bullish on non-US developed equities, as they have lagged US equities for the trailing 1-, 3-, 5- and 10-year periods, which is apparently a very unusual period of underperformance. And he said that the
CAPE method of investing beats the market 60% of the time, which is pretty decent as I see it. So DSEUX is now on the top of my potential buy list.
Kevin
What Are You Buying ... Selling ... or Pondering? Sold BUFTX and bought REGL. Only MF I have added to recently is DSENX. In the past 12 months have moved more $ into ETFs: XMLV, CAPE, MOAT and in most cases sold MFs. Looking at DEULX, however.
DSEUX / DLEUX
Bond news letter??? Ran into this .Good chart of nearly every domestic index's performance in time frames dating to the past five years.
So, is there magic in the post-election sprinkling of Trump Fairy Dust? I am encouraged by many of the ideas put forth, especially on tax reform as a way to unleash America's potential (less excited about other ideas). Consumer sentiment and small business confidence rose sharply following the election, suggesting the positive feelings or animal spirits are on the rise. That said, experience tells us that the political sausage grinder has a way of neutering the most well-intentioned plans, and that
the economy continues to struggle to achieve "escape velocity,” constrained by low productivity and labor force growth. Still, pull up a chair and grab some popcorn: I expect an exciting show!
https://www.ridgeworth.com/articles/market-perspective-december-31-2016Here's a longer perspective on the Trump Effect
SEIX BOUTIQUE PERSPECTIVE (CAN TRUMP MAKE BONDS GREAT AGAIN?)December 5, 2016 However, the structural issues will continue to serve as headwinds to growth as they have for the duration of this recovery and
lower for longer remains our base case as these deflationary forces remain firmly entrenched and secular in nature. More time and very difficult decisions are required to remedy these issues and politicians have been unwilling to tackle them thus far. As history has instructed, the political class typically fails to act absent a real crisis. Perhaps this is another political tendency the President-elect can approach from the non-traditional perspective of an outsider elected by Main Street. Hope springs eternal…
https://www.ridgeworth.com/articles/can-trump-make-bonds-great-again
Global Valuations
Global Valuations DSEUX: I guess I'm not sure how it would work compared to domestic DSENX. DSENX buys undervalued sectors from the S&P 500. Pretty clear and straight forward. CAPE picks from a somewhat stable group of U.S. stocks. Companies in a sector somewhat move in tandem. What index or group of countries will this fund use when buying? If the consumer sector is where value lies, is it the same value in the UK as it is in Greece? There are just so many other variables when buying global, country and regional variables that can drive sectors differently in different countries. That is pretty much why managed international or EM funds typically do better than index.
It may be clear to others, but to me it is not straight forward how International CAPE will work and that it will have category beating returns like domestic CAPE. And because it is basically a semi-quant fund, there is no reason to get in early IM<HO. The "manager" has no more flexibility with a small asset base than a large one. But, to each his own.
Global Valuations Hmmm....I was actually looking to invest in the International CAPE. Can anyone tell me if this is "me too" research or has Shiller been tracking it for as long as the domestic version?
