Search found 5338 matches

by Call_Me_Op
Fri Aug 28, 2015 2:41 pm
Forum: Personal Consumer Issues
Topic: Floss aversion
Replies: 44
Views: 3507

Re: Floss aversion

I have heard of loss aversion, but never floss aversion.
by Call_Me_Op
Fri Aug 28, 2015 2:40 pm
Forum: Investing - Theory, News & General
Topic: Cash is king over short-term bonds
Replies: 22
Views: 1276

Re: Cash is king over short-term bonds

Cash is just a limiting case of a bond, where the duration is zero. In any case, it hardly makes a different right now.
by Call_Me_Op
Fri Aug 28, 2015 11:38 am
Forum: Investing - Theory, News & General
Topic: Include Cash in Asset Allocation?
Replies: 6
Views: 280

Re: Include Cash in Asset Allocation?

So should my AA be something like 65% stock, 25% bonds and 10% cash etc? Or should I just keep it simple and split stocks and bonds and then have a separate emergency fund / savings account? That's really something you need to decide for yourself. You should ask why you are including cash, and be a...
by Call_Me_Op
Fri Aug 28, 2015 10:00 am
Forum: Investing - Theory, News & General
Topic: Do "valuations" affect your asset allocation?
Replies: 25
Views: 683

Re: Do "valuations" affect your asset allocation?

No. That would be a form of market timing.
by Call_Me_Op
Fri Aug 28, 2015 9:59 am
Forum: Personal Consumer Issues
Topic: Ant Control
Replies: 59
Views: 3118

Re: Ant Control

123 is right ... Borax Sugar and water is basically Terro, it works great, they take it back to their hive and it kills the queen, no more ants.. takes a while but pretty non toxic to humans Borax is safe for humans, but not for pets. It is a matter of animal size and dosage. I poisoned my cat many...
by Call_Me_Op
Fri Aug 28, 2015 7:24 am
Forum: Personal Consumer Issues
Topic: Ant Control
Replies: 59
Views: 3118

Re: Ant Control

We've also had good success w/ borax. We use a little bit of 20 mule team borax mixed with sugar, no water. Our experience has been better w/ a low ratio of borax, maybe 10-20% borax, 80% sugar. No water. Just stir the powders and set out in a container, inaccessible to kids/pets. +1. This works. L...
by Call_Me_Op
Fri Aug 28, 2015 6:16 am
Forum: Personal Consumer Issues
Topic: Ant Control
Replies: 59
Views: 3118

Re: Ant Control

I have had excellent results destroying a large carpenter ant colony (including a satellite nest in my house) by baiting outdoors using Terro liquid ant traps. It requires proper placement, replacement, and persistence. For permanent control, baiting indoors for a short period is insufficient - and ...
by Call_Me_Op
Mon Aug 24, 2015 5:07 pm
Forum: Investing - Theory, News & General
Topic: Who's selling now?
Replies: 63
Views: 6441

Re: Who's selling now?

watchnerd wrote:I'm selling BND / VBMFX to buy a bond vehicle that is more Treasury-centric; the last two days have been educational on the benefits of a more pure Treasuries fund vs total bond market.


Sounds a bit like closing the barn doors after the horses have run off.
by Call_Me_Op
Mon Aug 24, 2015 6:24 am
Forum: Investing - Help with Personal Investments
Topic: What to do now with market crash?
Replies: 56
Views: 7078

Re: What to do now with market crash?

How bad do you all think this thing is going to get now that china and india market crashed again today? I waited for a moment like this to come along before I start to invest. I am 21 years old and have $10k investing cash set aside. What would be a good course of action in a situation like this? ...
by Call_Me_Op
Sun Aug 23, 2015 12:39 pm
Forum: Investing - Theory, News & General
Topic: How long will you"Stay the Course"?
Replies: 99
Views: 7723

Re: How long will you"Stay the Course"?

Bonnan wrote:What combination of duration and drop in the market might break your resolve? 20%/two months?, 20%/two years, 40%/four months?,40%/four years?, or whatever. It is possible since there is a surplus of capacity/labor and a scarcity of jobs.


Stay the course means just that - stay the course.
by Call_Me_Op
Sun Aug 23, 2015 7:36 am
Forum: Investing - Help with Personal Investments
Topic: Investing in Bonds in Taxable Accounts
Replies: 7
Views: 645

Re: Investing in Bonds in Taxable Accounts

Look at what happened to corporate bonds in 2008 versus muni's and then tell me they are otherwise equivalent.
by Call_Me_Op
Sun Aug 23, 2015 7:25 am
Forum: Investing - Theory, News & General
Topic: Good argument for underweighting international stocks?
Replies: 77
Views: 4334

Re: Good argument for underweighting international stocks?

Assumptions: Maybe Vanguard was right all along, with only a 40% allocate to international instead of the theoretically optimal cap weight of 48% (inferred from VT). I doubt Vanguard was right all along since they only recently bumped-up their allocations to international. Currency risk works both ...
by Call_Me_Op
Sun Aug 23, 2015 7:22 am
Forum: Investing - Theory, News & General
Topic: Historical Asset Returns & Future Returns
Replies: 35
Views: 2090

Re: Historical Asset Returns & Future Returns

While I agree that we cannot rely on past data to predict future returns, the relative performance of asset class categories is likely to hold in the future - that is, small value is likely to return more than large growth over long time periods.
by Call_Me_Op
Fri Aug 21, 2015 7:10 am
Forum: Investing - Help with Personal Investments
Topic: New to investing: Investing with friend
Replies: 56
Views: 2157

Re: New to investing: Investing with friend

AU1214 wrote:I wanted to get your thoughts on if these costs are reasonable. Thank you.


IMO, you should be asking whether this is a good idea at all. My opinion is "NO!"
by Call_Me_Op
Fri Aug 21, 2015 7:08 am
Forum: Investing - Theory, News & General
Topic: Pascal's Wager and prudent investment decisions
Replies: 29
Views: 3053

Re: Pascal's Wager and prudent investment decisions

Hi Larry,

I assume that in a follow-on article, you plan to define what "stop playing the game" looks like?
by Call_Me_Op
Thu Aug 20, 2015 4:32 pm
Forum: Investing - Theory, News & General
Topic: Bogle: retirees should focus on dividends
Replies: 137
Views: 11451

Re: Bogle: retirees should focus on dividends

cheapskate wrote:Rather than stir up the Dividend debate again, Bogle's extremely well reasoned points should help settle the issue.


Surely, you must be joking....
by Call_Me_Op
Mon Aug 17, 2015 5:55 pm
Forum: Investing - Theory, News & General
Topic: Theoretic borrowing and arbitrage question
Replies: 6
Views: 475

Re: Theoretic borrowing and arbitrage question

Day9 wrote:
Would you always under any circumstance come out ahead by borrowing money to buy these T-bills? Even in cases of extreme inflation or extreme deflation?


Your nominal return has nothing to do with inflation or deflation.
by Call_Me_Op
Sun Aug 16, 2015 7:37 am
Forum: Investing - Theory, News & General
Topic: What is going on out there?
Replies: 43
Views: 6261

Re: What is going on out there?

Prague wrote: The stock market should reflect the performance of the corporations it represents instead of rumors and manipulations.


How can the performance of corporations be measured day to day?
by Call_Me_Op
Sat Aug 15, 2015 10:20 am
Forum: Investing - Theory, News & General
Topic: CDs vs. 20-year Treasury ETF in portfolio?
Replies: 3
Views: 311

Re: CDs vs. 20-year Treasury ETF in portfolio?

No and no. The CD is a much better deal by all of the usual metrics.
by Call_Me_Op
Sat Aug 15, 2015 9:13 am
Forum: Investing - Theory, News & General
Topic: Dave Ramsey - Help Me Understand His Investing Strategy
Replies: 75
Views: 8123

Re: Dave Ramsey - Help Me Understand His Investing Strategy

Does he stand to gain personally if you invest in certain funds?
by Call_Me_Op
Sat Aug 15, 2015 7:15 am
Forum: Investing - Theory, News & General
Topic: Why are Vanguard's bond funds Actively managed?
Replies: 9
Views: 1692

Re: Why are Vanguard's bond funds Actively managed?

The reason passively managed bond funds win out are because the average actively managed bond fund is too expensive. Vanguard's actively managed bond funds are just as cheap as their index bond funds, so it doesn't really matter how they are managed. If this last sentence is true, then why does Van...
by Call_Me_Op
Sat Aug 15, 2015 6:55 am
Forum: Investing - Theory, News & General
Topic: Looking for a graph that shows how much of your Investment Gain is taken by different ERs
Replies: 17
Views: 894

Re: Looking for a graph that shows how much of your Investment Gain is taken by different ERs

The math is simple. The percentage of return you give up depends mainly upon the added expenses and time. The return without the added expenses is (1+R)^N - 1, where R is the rate of return/100, and N is the number of years. This can be compared to the return with expenses, which is (1+(R-E))^N - 1,...
by Call_Me_Op
Thu Aug 13, 2015 5:22 pm
Forum: Investing - Theory, News & General
Topic: Why not diversify beyond the Three Fund Portfolio?
Replies: 78
Views: 7843

Re: Why not diversify beyond the Three Fund Portfolio?

Hi Taylor, I think we all agree that we need to look at something to make decisions about how to allocate assets. If we declare that all past data are worthless, I don't think we have any basis at all for deciding how to invest. In particular, I would argue that very long-term data on the relative ...
by Call_Me_Op
Thu Aug 13, 2015 1:24 pm
Forum: Investing - Theory, News & General
Topic: Why not diversify beyond the Three Fund Portfolio?
Replies: 78
Views: 7843

Re: Why not diversify beyond the Three Fund Portfolio?

Taylor, The Norstad article does not seem to back its claim that deviating from the total market index is expected to be unprofitable - at least not with data. In particular, I am thinking about the research performed by Paul Merriman, looking at a "slice and dice" approach over the past ...
by Call_Me_Op
Wed Aug 12, 2015 4:56 pm
Forum: Investing - Theory, News & General
Topic: Cap-weight indexers, how do you explain these graphs?
Replies: 64
Views: 3215

Re: Cap-weight indexers, how do you explain these graphs?

I like the way rmelvey expressed the benefit of the total market index - it ensures that your stock investments will do better than the average stock market investor. That is mathematical fact, and it the only thing that can be said regarding the performance of total market index. A little off-topi...
by Call_Me_Op
Wed Aug 12, 2015 10:11 am
Forum: Personal Finance (Not Investing)
Topic: 5 Finance Myths Millennials Should Avoid
Replies: 32
Views: 5469

Re: 5 Finance Myths Millennials Should Avoid

I wouldn't say that the author is "irresponsible" but the article leaves the reader wanting. For example, she tells you not to stash your money in the bank but instead to place it "elsewhere", without saying where "elsewhere" is - and discussing the risks of placing you...
by Call_Me_Op
Wed Aug 12, 2015 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Overcoming Salary Plateau
Replies: 11
Views: 1828

Re: Overcoming Salary Plateau

rejuvination?
by Call_Me_Op
Wed Aug 12, 2015 9:53 am
Forum: Investing - Theory, News & General
Topic: Cap-weight indexers, how do you explain these graphs?
Replies: 64
Views: 3215

Re: Cap-weight indexers, how do you explain these graphs?

I like the way rmelvey expressed the benefit of the total market index - it ensures that your stock investments will do better than the average stock market investor. That is mathematical fact, and it the only thing that can be said regarding the performance of total market index. There are many fal...
by Call_Me_Op
Wed Aug 12, 2015 9:30 am
Forum: Investing - Theory, News & General
Topic: Why not diversify beyond the Three Fund Portfolio?
Replies: 78
Views: 7843

Re: Why not diversify beyond the Three Fund Portfolio?

I used to own diversifiers like REIT funds, but I dumped them years ago. Reason: whenever I found myself with a sleepless night, tossing and turning, worrying about my investments, the reason was always the 5% positions like REITs and Energy and Precious Metals, or whatever. It was never the 90% in...
by Call_Me_Op
Wed Aug 12, 2015 8:48 am
Forum: Investing - Theory, News & General
Topic: Why not diversify beyond the Three Fund Portfolio?
Replies: 78
Views: 7843

Re: Why not diversify beyond the Three Fund Portfolio?

Taylor, The Norstad article does not seem to back its claim that deviating from the total market index is expected to be unprofitable - at least not with data. In particular, I am thinking about the research performed by Paul Merriman, looking at a "slice and dice" approach over the past 9...
by Call_Me_Op
Wed Aug 12, 2015 7:09 am
Forum: Investing - Help with Personal Investments
Topic: Re-evaluating AA and %international equity
Replies: 16
Views: 1563

Re: Re-evaluating AA and %international equity

I have been 50-50 for many years. Home country bias never made sense to me - and still does not. It's not as much about expected return as it is about avoiding concentrating one's bets.
by Call_Me_Op
Mon Aug 10, 2015 6:42 pm
Forum: Investing - Help with Personal Investments
Topic: 100% bond portfolio
Replies: 35
Views: 3040

Re: 100% bond portfolio

Taylor, I am sure the fact that he was "very wealthy" played into his comfort with an all-bond strategy. If you are very wealthy, it is hard to go broke as long as you avoid scams and leverage. Even then, munis have credit risk. Meredith Whitney turned out to be wrong, but her fears don't...
by Call_Me_Op
Mon Aug 10, 2015 6:41 pm
Forum: Investing - Theory, News & General
Topic: Does the Three Fund Portfolio need a roboadviser?
Replies: 65
Views: 5168

Re: Does the Three Fund Portfolio need a roboadviser?

The 3 fund portfolio is extremely simple and low cost. I don't know why anyone would want to increase the cost by adding any type of advisor, robo or otherwise.
by Call_Me_Op
Sun Aug 09, 2015 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: 100% bond portfolio
Replies: 35
Views: 3040

Re: 100% bond portfolio

Taylor,

I am sure the fact that he was "very wealthy" played into his comfort with an all-bond strategy.

If you are very wealthy, it is hard to go broke as long as you avoid scams and leverage.
by Call_Me_Op
Sun Aug 09, 2015 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: Boston area housing. Is it wise to buy now or wait?
Replies: 8
Views: 926

Re: Boston area housing. Is it wise to buy now or wait?

If what you say is true, it would be because of proximity to Boston. Boston is a very happening city (along with Cambridge). I would not expect significant price declines there.

Over long time periods, real estate tends to rise a bit faster than inflation, and inflation is generally positive.
by Call_Me_Op
Sun Aug 09, 2015 12:25 pm
Forum: Investing - Help with Personal Investments
Topic: Boston area housing. Is it wise to buy now or wait?
Replies: 8
Views: 926

Re: Boston area housing. Is it wise to buy now or wait?

Boston area housing prices are currently more expensive than they were at the previous peak in 2005/2006 even after adjusting for inflation. I don't think this is correct. http://www.jparsons.net/housingbubble/boston.html In any case, if you are waiting for prices to drop significantly, you may be ...
by Call_Me_Op
Sun Aug 09, 2015 9:23 am
Forum: Investing - Help with Personal Investments
Topic: PR Munis
Replies: 2
Views: 173

Re: PR Munis

Ever hear of the Greater Fool Theory?
by Call_Me_Op
Sun Aug 09, 2015 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Did a dumb thing [lump summed into market after sitting on cash for years]
Replies: 111
Views: 12800

Re: Did a dumb thing

Thanks for the advice. Yes, we had taken it out of the market before it really bombed the last time. I am hearing from a financial advisor we should put it into some of their funds instead - move it out of the funds I just put it in. They have some interesting thing where they guarantee losses up t...
by Call_Me_Op
Sun Aug 09, 2015 6:39 am
Forum: Investing - Help with Personal Investments
Topic: Did a dumb thing [lump summed into market after sitting on cash for years]
Replies: 111
Views: 12800

Re: Did a dumb thing [lump summed into market after sitting on cash for years]

I had tried to wait until it felt safe to buy into the market and finally, after years of sitting in a cash account, put my whole 401k into Vanguard index funds. Then, of course, the market started to fall. (Jul 21) VFIAX Vanguard 500 Index Fund Admiral Shares VIMAX Vanguard Mid-Cap Index Fund Admi...
by Call_Me_Op
Sat Aug 08, 2015 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Suze Orman and Bond Funds
Replies: 9
Views: 1232

Re: Suze Orman and Bond Funds

The rub in Suze's quote is "assuming no default." You cannot make this assumption unless the bonds are treasuries, in which case you do not need a fund. For all other bonds, should you choose to invest in them, funds are the best way to own them for most investors.
by Call_Me_Op
Sat Aug 08, 2015 6:16 am
Forum: Investing - Theory, News & General
Topic: Kitces: How bond funds could beat individual bonds in a rising interest rate environment.
Replies: 11
Views: 1217

Re: Kitces: How bond funds could beat individual bonds in a rising interest rate environment.

Seems like he is comparing apples to oranges. He should be comparing funds to a rolling bond ladder, in which case the two are largely equivalent.
by Call_Me_Op
Fri Aug 07, 2015 7:37 am
Forum: Investing - Theory, News & General
Topic: 3 Reasons to Rejoice Higher Interest Rates
Replies: 54
Views: 7100

Re: 3 Reasons to Rejoice Higher Interest Rates

Folks with long term, fixed rate mortgages should rejoice! Why? Assuming they own bonds (which I should have stipulated), their income will increase, but their outflow will remain the same. Even with that stipulation, I do not agree with the conclusion. You are assuming that an increase in the Fed ...
by Call_Me_Op
Thu Aug 06, 2015 9:23 am
Forum: Investing - Theory, News & General
Topic: Are index funds bad for the economy?
Replies: 25
Views: 1321

Re: Are index funds bad for the economy?

Well, presumably, active trading benefits the economy through price discovery. If there was no active trading, there would be no market. This, of course, would never happen. As soon as the indexers start selling their shares in retirement, a tremendous opportunity would arise to trade actively. Cle...
by Call_Me_Op
Thu Aug 06, 2015 6:34 am
Forum: Investing - Help with Personal Investments
Topic: Could John Bogle Be Right About International Stock?
Replies: 81
Views: 7798

Re: Could John Bogle Be Right About International Stock?

Really, How often is Jack wrong. Perhaps just this once - or perhaps twice, if we include the factor premia issue. Really, there are a few areas where people here may disagree with Jack, but on the main issues - the importance of keeping costs to a minimum, diversification (avoiding non-systematic ...
by Call_Me_Op
Thu Aug 06, 2015 6:30 am
Forum: Investing - Theory, News & General
Topic: Are index funds bad for the economy?
Replies: 25
Views: 1321

Re: Are index funds bad for the economy?

There is a curious pair of articles, Index Funds May Work a Little Too Well and Mutual Funds' Dark Side , that make an argument that institutional investing in general (and index funds in particular) are bad for the economy because they discourage competition within the economic segments. (If the s...
by Call_Me_Op
Thu Aug 06, 2015 6:24 am
Forum: Investing - Theory, News & General
Topic: 3 Reasons to Rejoice Higher Interest Rates
Replies: 54
Views: 7100

Re: 3 Reasons to Rejoice Higher Interest Rates

Rick,

Why are you assuming that any expected Fed actions are not already factored into interest rates?
by Call_Me_Op
Thu Aug 06, 2015 5:49 am
Forum: Investing - Theory, News & General
Topic: 3 Reasons to Rejoice Higher Interest Rates
Replies: 54
Views: 7100

Re: 3 Reasons to Rejoice Higher Interest Rates

bhsince87 wrote:Folks with long term, fixed rate mortgages should rejoice!


Why?
by Call_Me_Op
Wed Aug 05, 2015 8:50 am
Forum: Investing - Theory, News & General
Topic: TLT+Gold/Silver vs Total Bond
Replies: 9
Views: 534

Re: TLT+Gold/Silver vs Total Bond

freyj6 wrote:In a stock heavy portfolio, can a case be made for holding TLT/Precious metals for a combined 10-20% of the fund?


Perhaps on the basis of back-testing alone.
by Call_Me_Op
Wed Aug 05, 2015 7:46 am
Forum: Investing - Help with Personal Investments
Topic: A retiree's Investment Policy Statement
Replies: 32
Views: 3092

Re: A retiree's Investment Policy Statement

I am not retired, but I have a very long IPS that includes lots of theory and graphs. I plan to condense it to a single page and have both versions.
by Call_Me_Op
Wed Aug 05, 2015 7:41 am
Forum: Personal Finance (Not Investing)
Topic: Hourly Based Adviser in Boston Area
Replies: 9
Views: 566

Re: Hourly Based Adviser in Boston Area

Why do you feel you need an advisor?

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