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Re: john bogle comment at yahoo

Your rate of return on an investment is the earnings (of a stock, say) divided by the price you paid. If lots of people get into the market, this drives up prices, thus diminishing future returns. Basically, the earnings yield of a stock is the reciprocal of the P/E. During periods of euphoria, the ...
by matthewjheaney
Fri Feb 08, 2013 12:35 pm
 
Forum: Investing - Theory, News & General
Topic: john bogle comment at yahoo
Replies: 5
Views: 1004

Re: Using short-term bonds to preserve buying power

Thanks nisiprius for the response. Very instructive. As you see, it's bouncing up and down by $50, $100, and there is definitely a possibility of losing money if you buy and sell at the wrong times. If you expand the scale to 3 years it doesn't look so bad. But it is still a bond fund and bond funds...
by matthewjheaney
Tue Jan 29, 2013 9:58 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using short-term bonds to preserve buying power
Replies: 7
Views: 1061

Re: Using short-term bonds to preserve buying power

Thanks, John and Call_Me_Op. Call_Me_Op said, You will need to accept a small real loss. OK, but is this real loss less than the loss that would occur if I leave the money in a money market fund, instead of investing it in a short-term bond fund? For a (short-term) bond fund, is there some minimum h...
by matthewjheaney
Tue Jan 29, 2013 9:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using short-term bonds to preserve buying power
Replies: 7
Views: 1061

Re: Using short-term bonds to preserve buying power

Thanks Dave, for your response to my post. This is the aspect of (short-term) bond funds that I don't quite understand. I think it's true that if I buy an individual bond, and then hold it for at least at long as its duration, then I'm free and clear, with respect to changes in its value because of ...
by matthewjheaney
Tue Jan 29, 2013 5:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using short-term bonds to preserve buying power
Replies: 7
Views: 1061

Using short-term bonds to preserve buying power

Hello, I have some money set aside, earmarked for use as the deposit for the purchase of a home. The money is currently invested in a money market fund, in a taxable account (at Vanguard). I won't be buying a home for another year or two, and so I'd like to invest (some of) it in a manner such that ...
by matthewjheaney
Tue Jan 29, 2013 5:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Using short-term bonds to preserve buying power
Replies: 7
Views: 1061

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