Search found 1068 matches

by FabLab
Thu Apr 28, 2016 6:57 pm
Forum: Investing - Theory, News & General
Topic: Selling in May and Walking Away?
Replies: 106
Views: 15166

Re: Selling in May and Walking Away?

One should always match insignificant concerns like building an investment portfolio with rhyming advice.
by FabLab
Fri Nov 13, 2015 5:36 am
Forum: Personal Investments
Topic: Age 53 / Pay Off Student Loans with Inheritance?
Replies: 50
Views: 8939

Re: Age 53 / Pay Off Student Loans with Inheritance?

Apparently, through the generosity of another, you now have the means to pay off your student debt. For so very many reasons, please do so.

The claptrap in this thread that provides cover for shrinking away from your obligations should be avoided.
by FabLab
Tue Aug 25, 2015 10:00 am
Forum: Investing - Theory, News & General
Topic: [spurned advisor purports there is a Vanguard] Class Action Suit?
Replies: 43
Views: 7403

Re: Class Action Suit?

TinyElvis wrote:

Am I missing something? Does this have any merit or is he grasping at straws?
If purveying FUD (Fear, Uncertainty, and Doubt) were meritorious, then the claims from the adviser you are moving away from would be pearls of wisdom.
by FabLab
Mon Aug 17, 2015 9:56 am
Forum: Personal Consumer Issues
Topic: Greatest money lesson movie
Replies: 71
Views: 11672

Re: Greatest money lesson movie

I'm shocked no one's mentioned the greatest money movie of all. Why, of course, it's The Cocoanuts, the 1929 Marx Brothers film reflecting the 1920s Florida land boom. As Groucho hawks land of dubious value:

"You can have any kind of home you want to. You can even get stucco! Oh, how you can get stuck-oh!"

Have to say, The Treasure of the Sierra Madre, based on the novel by the mysterious B. Traven, is also excellent. I highly recommend reading Traven's books as well.
by FabLab
Fri Aug 14, 2015 6:25 am
Forum: Personal Consumer Issues
Topic: Is Anybody Here An Ornithologist?
Replies: 29
Views: 3344

Re: Is Anybody Here An Ornithologist?

This morning I heard the birds and squirrels going nuts in their tree, shrieking and screaming like I've never heard before. I ran out to see these two birds (Hawks?) circling the tree. http://i62.tinypic.com/10ndysp.jpg Here's the mate. http://i60.tinypic.com/259ijqo.jpg I've never seen these birds in my neighborhood the 17 years I've lived here. My main concern is for the safety of the neighborhood pets and how to alert my neighbors. Can anyone tell me what kind of Hawk or whatever other kind of bird this is? I've been trying to look up migratory/predatory habits, but so many look the same to me. Thanks, Based on your photos it looks like a Cooper's Hawk. Please note, however, that the Sharp-shinned Hawk can appear very similar. And, yes...
by FabLab
Thu Jul 30, 2015 7:52 am
Forum: Personal Finance (Not Investing)
Topic: Geico Auto Insurance
Replies: 63
Views: 8235

Re: Geico Auto Insurance

To date, we've been with GEICO for 42 years. We have had none of the negative experiences some have shared in this thread. We pay $628 annually for our policy. Covers one car, which is new. But, that is so high ONLY because in retirement we moved to a southern state well known for high car insurance premiums. Back north the GEICO annual premium was considerably less.
by FabLab
Thu Jul 23, 2015 7:31 pm
Forum: Personal Investments
Topic: Is this a cup-with-handle pattern?
Replies: 29
Views: 4118

Re: Is this a cup-with-handle pattern?

Caduceus wrote:
More seriously, where did folks get the Vanguard cup? How do I get one too? Was it given out during the conference?
Hello Caduceus,
Vanguard's Rebecca Katz once sent that to me.
by FabLab
Thu Jul 23, 2015 11:03 am
Forum: Personal Finance (Not Investing)
Topic: I'm a spender?
Replies: 44
Views: 8013

Re: I'm a spender?

A perspective on life that averted our spending too much as a young couple:

"Too many people spend money they haven't earned to buy things they don't want to impress people they don't like."
---- Will Rogers
by FabLab
Thu Jul 23, 2015 6:12 am
Forum: Personal Investments
Topic: Is this a cup-with-handle pattern?
Replies: 29
Views: 4118

Re: Is this a cup-with-handle pattern?

Here's a cup-and-handle pattern that may help you:

Image
by FabLab
Tue Jul 21, 2015 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 12116

Re: Why did you take SS at FRA instead of delaying until 70?

I plan to take SS benefits based on my own earnings record at 70. It was an easy decision to make. All I had to do was answer the following question in the negative: Do we in any way need the money earlier? Break-even analysis was unimportant compared with the longevity insurance aspect of delaying to 70.

However, since I'm past FRA and my better half chose to take her own SS at her FRA, I do receive spousal benefits--which I expect to continue until 70.
by FabLab
Wed Jul 01, 2015 8:25 am
Forum: Personal Consumer Issues
Topic: French Presses: Glass Carafes vs. Stainless Steel Presses
Replies: 16
Views: 10876

Re: French Presses: Glass Carafes vs. Stainless Steel Presses

We've been making our coffee via French Presses for many years. Started with glass carafes, but they had a habit of breaking. The one we use now I can heartily recommend:

http://www.amazon.com/Bodum-1308-16-Col ... ench+press
by FabLab
Wed Jul 01, 2015 8:15 am
Forum: Personal Finance (Not Investing)
Topic: Obsessing towards zero balance on credit card.
Replies: 158
Views: 25300

Re: Obsessing towards zero balance on credit card.

How complicated or worrisome is this really? I receive a bill for a credit card once a month and pay it in full by check. Next month, I do the same. Maybe, I don't even understand this thread.
by FabLab
Thu Jun 25, 2015 11:37 am
Forum: Personal Finance (Not Investing)
Topic: [CNBC article: Social Security Denying Delayed Benefits]
Replies: 32
Views: 7702

Re: Is this really a Problem with Social Security.....Need a Forum S.S. Expert...

When reading Kotlikoff, it can be helpful to remember where he's coming from. His position is that Social Security rules are " a disgrace and unfair to people of all ages " and that " the Social Security system gives social insurance a bad name and needs to be replaced, root and branch ." His goal when he's writing isn't just to inform you but to persuade you that the system is a problem and needs to be replaced. (And this part is just my speculation -- possibly 100% wrong -- but it often appears that he intentionally writes in an inflammatory style and/or makes things out to be more complicated than they are in order to get people riled up.) An alternative, less inflammatory way to summarize the point of the article wo...
by FabLab
Wed Jun 17, 2015 9:34 am
Forum: Personal Consumer Issues
Topic: LastPass.com Breach
Replies: 155
Views: 39941

Re: LastPass.com Breach

astrohip wrote: This is so incredibly wrong as to be malicious information.

Posting incorrect info like you have done, info that you made up (show me ONE online link that says what you said) is negligence. I now believe you are making up and posting info just to discredit LP.
Don't forget, this is the Internet. Other than computer security, the only topic that attracts even more made-up stuff is: personal finance :sharebeer
by FabLab
Mon Jun 15, 2015 4:13 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 7638
Views: 1712476

Re: What Book Are You Currently Reading? Part VI

Just don't read many detective stories. But, one day at the library I saw Michael Connelly's The Burning Room on the fast-loan shelf. Grabbed it, gave it a try, and enjoyed. Then for my birthday, my better half surprised me with a hardback edition of Connelly's The Black Echo. I think that may have been his first Bosch, and I couldn't put it down.

The precursor to this was that we had watched the first season of Bosch as an Amazon original series. It seems like the start of a terrific TV detective series! So, that leaves me looking for which Bosch book to follow up from The Black Echo ...

Suggestions?
by FabLab
Tue Apr 28, 2015 3:12 am
Forum: Personal Finance (Not Investing)
Topic: Feel like I made a mistake with buying a house: appreciation
Replies: 45
Views: 9939

Re: Feel like I made a mistake with buying a house: apprecia

Whether purchasing investments or buying your next house, you should always follow the advice of Will Rogers:

"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it."
by FabLab
Mon Apr 27, 2015 10:43 am
Forum: Investing - Theory, News & General
Topic: "A TSP Checkup"
Replies: 2
Views: 895

Re: "A TSP Checkup"

Bogleheads: The government Thrift Savings Plan is the largest defined benefit plan in the United States. In my opinion, it is also the best (lowest cost, diversified options, and (relatively) simple to understand and maintain). It is available to most government workers including the military. Morningstar's Christine Benz, who is on our Panel of Experts at Vanguard Conferences, has written an excellent article about the TSP. Her article includes a link to our wiki which also has a very good summary of the Thrift Savings Plan. A TSP Checkup Best wishes. Taylor Taylor, Thank you so much for sharing the link. My better half, a retired federal attorney, will enjoy giving it a read. Of course, you meant to say the TSP is a defined-contribution ...
by FabLab
Wed Apr 22, 2015 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: What age did your Net Worth first equal 10,000x your Weight?
Replies: 48
Views: 6835

Re: What age did your Net Worth first equal 10,000x your Wei

You might want to reach the younger demographic, so how about trying: At what age did your Net Worth first equal 10,000x your body mass index (BMI)?

We folk of a "certain age" otherwise would be too well represented answering your question. :D
by FabLab
Tue Apr 21, 2015 9:08 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066237

Re: What Movie Have You Recently Watched?

joe8d wrote:
Barefootgirl wrote:Birdman,

Perhaps I've the only person in America who did not enjoy this one...and I usually enjoy quirky, non-formulaic films...just couldn't get into it and I am even a big Edward Norton fan.

Maybe it was too dark, too odd for even me. For those who enjoyed it, would like to know what subtle message here I missed lol.

BFG
It was terrible and other then the "Academy",I don't know anyone who like it.
I didn't like it either; I loved it!
by FabLab
Wed Apr 08, 2015 8:28 am
Forum: Personal Finance (Not Investing)
Topic: 2 commas and mortgage-free
Replies: 33
Views: 7014

Re: 2 commas and mortgage-free

Viking65 wrote:And last year we hit the 2-comma club (invested assets, excluding house equity). I had a long-term goal to reach these milestones by the time I turned 50, and made it with about 6 months to spare. Feeling much, much better about financial security.
Welcome to the club! We've been waiting for you. :sharebeer
by FabLab
Wed Apr 08, 2015 6:08 am
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 407
Views: 111041

Re: Do you think Ric Edelman is correct, never pay down mort

but that doesn't mean taking on the risk was wrong or irrational. Of course it doesn't mean taking risk was wrong. A person's desired risk level is the fundamental decision an investor makes. High risk isn't financially wrong, low risk isn't financially wrong. Where people go wrong is thinking that one is financially better than the other. Once an investor has decided his risk level, the prudent financial decisions are to make the lowest cost (hence highest return) investments at each risk level. That's the crux of why maintaining a mortgage is generally a suboptimal choice. Usually the investor is either at a different risk level than desired or isn't taking the risk most efficiently, often both. Thank you, Harold, for contributing the mo...
by FabLab
Mon Apr 06, 2015 2:53 pm
Forum: Investing - Theory, News & General
Topic: Do you think Ric Edelman is correct, never pay down mortgage
Replies: 407
Views: 111041

Re: Do you think Ric Edelman is correct, never pay down mort

I think it's a matter of priorities. If you have surplus cash flow and a decent emergency fund then I'd say they should look something like this: 1) Paying down high interest non-mortgage debt 2) Matched tax advantaged investing (like a 401k with company match) 3) Paying down low interest non-mortgage debt 4) Non-Matched tax advantaged investing (IRA, ROTH or 401k without company match) 5) Paying down the mortgage 6) Taxable investing I agree. Oh, I suppose we could overthink this and get too clever by half. But we are both retired now. So, with substantial monthly surplus cash flow and a large emergency fund, our options have crystallized: we choose to pay our 30-yr. mortgage off within its first two years. Then we add to taxable.
by FabLab
Thu Apr 02, 2015 9:11 am
Forum: Personal Finance (Not Investing)
Topic: Another reason why BHs pay off mortgage early?
Replies: 51
Views: 11709

Re: Another reason why BHs pay off mortgage early?

Pay it off as fast as you can. A"retired" couple near 70 I know just refinanced their mortgage to a new 15 year term. It dictates much of what they can and can't do. It is a retirement boat anchor. How does a retired couple in their 70s qualify for a forward mortgage ? Don't they need to show proof of earned income ? In late 2013 we retired (mid to late sixties) and moved to warmer climes. Wishing to remain fully invested in the market, we took out a 30-yr mortgage for $125K to cover projects we had in mind for our new home (stripping out flooring and replacing with engineered hardwood, painting inside and out, choosing granite we preferred for the kitchen, etc.). We had/have no earned income. Since that time, we've stepped up ou...
by FabLab
Wed Apr 01, 2015 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Why Mac only has online version of WillMaker and Turbo Tax?
Replies: 14
Views: 2197

Re: Why Mac only has online version of WillMaker and Turbo T

FredL wrote:Why Mac only has online version of Nolo WillMaker and TurboTax? Someone told me because Apple wants to steal your personal data. Isn't it scary if it is true. I think in the future everything will be online because we are going to CLOUD computing. We need new law for this.
FredL
We dealt with this issue of Macs and TurboTax just a couple weeks ago: http://www.bogleheads.org/forum/viewtop ... 7&start=50

If you didn't accept the answer then, you could have verified it by checking Amazon. There, you would have seen that the CD version of TurbtoTax for Mac is, and has been, readily available for some time.
by FabLab
Sat Mar 21, 2015 1:11 pm
Forum: Personal Consumer Issues
Topic: Laptop: Windows based vs. Apple
Replies: 87
Views: 18839

Re: Laptop: Windows based vs. Apple

topos wrote:
FredL wrote:You cannot install TurboTax on
Doesn't look correct. TurboTax 2014 for Mac is available from the Apple AppStore.
Of course it is available. I've also run TurboTax through the free download program offered to Vanguard's Flagship clients. Additionally, one can purchase the CD version from Amazon (or from whomever) and install it on a Mac hard drive. Runs just fine.

Just more FUD.
by FabLab
Sun Mar 01, 2015 11:48 am
Forum: Personal Finance (Not Investing)
Topic: I survived my initial performance improvement mtg. Now what?
Replies: 33
Views: 7715

Re: I survived my initial performance improvement mtg. Now w

But the big picture is that it worked. Im still employed. Nothing "worked." You would not have been fired on the spot during a PIP presentation. All this business about documenting every step along the way is a waste of your time and energy--and will prove to be quite stressful for you. Unless you haven't mentioned an interesting tidbit, such as you are married to the CEO's daughter (and you both live with your parents), you are in the process of being fired. Face it, the fit isn't there and your best talents should be targeted elsewhere. Be realistic, do some soul searching toward finding the right job/career for you. You may find that in the long run it's better to leave this company sooner and on your own accord. There are way...
by FabLab
Sun Mar 01, 2015 11:25 am
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 11037
Views: 2066237

Re: What Movie Have You Recently Watched?

Birdman

Loved it! My better half's reaction, not so much.
by FabLab
Thu Feb 12, 2015 10:44 am
Forum: US Chapters
Topic: SIGN PETITION FOR Jack Bogle's Presidential Medal of Freedom
Replies: 182
Views: 25278

Re: SIGN PETITION FOR Jack Bogle's Presidential Medal of Fre

A privilege to sign. Thanks much!
by FabLab
Mon Feb 02, 2015 8:04 am
Forum: Personal Investments
Topic: Met a Vanguard basher TransAmerica Insurance pusher
Replies: 41
Views: 7512

Re: Met a Vanguard basher TransAmerica Insurance pusher

So, you've met someone who is more comfortable with your money in his pocket. What else is new?
by FabLab
Fri Jan 30, 2015 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: How to respond when someone asks how much money you make?
Replies: 107
Views: 39224

Re: How to respond when someone asks how much money you make

What to answer?

Well, there's an old story of two great friends, Jack Lemmon and Walter Matthau. They were on the set and the scene required Matthau to step to the top of a ladder. He fell and came crashing down to the floor. He lay face-up, motionless, with eyes closed. Lemmon was in great distress, thinking his friend was gravely injured, or worse. He looked down at the body of Matthau, realizing there'd been absolutely no movement.

"Walter, Walter, are you OK?"

Matthau, lying prone, opens his eyes, looks up at his best buddy and says, with a shrug: "I make a living."
by FabLab
Fri Jan 30, 2015 2:42 pm
Forum: Personal Consumer Issues
Topic: Mac reliability?
Replies: 89
Views: 9760

Re: Mac reliability?

I can only speak from my experience: As I switched to Macs some years ago, I have been very pleased with their reliability, performance, and ease of use. Their technical customer service has been stellar. And, the ones I have used have not been gummed up by the security issues that seemed par for the course when I used PCs (which was for most of my professional life).

That's all I can honestly say.
by FabLab
Thu Jan 15, 2015 10:05 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 7638
Views: 1712476

Re: What Book Are You Currently Reading? Part VI

The Sportswriter by Richard Ford. A favorite contemporary novelist of mine. Though I've read all the other works in the Bascombe series this, the first, had escaped me. Actually, since it's been around for awhile (1995), the copy in my local library is so crummy I waited until Santa just gave me this for Christmas.
by FabLab
Thu Jan 15, 2015 9:50 am
Forum: Personal Consumer Issues
Topic: Retirees: Do you work part-time for pay?
Replies: 58
Views: 9018

Re: Retirees: Do you work part-time for pay?

Zero interest in work of any sort for pay in retirement. However, I do volunteer at various nonprofits that support my environmental interests.

Still love the reply of former NFL coach Bum Phillips when asked what he does in retirement: "Nothin'. And I don't start doing that until noon."
by FabLab
Thu Jan 15, 2015 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Do you encrypt financial/investment documents on your PC?
Replies: 37
Views: 4030

Re: Do you encrypt financial/investment documents on your PC

Yes to encryption, but on external drives. Nothing on PC.
by FabLab
Tue Sep 23, 2014 9:57 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part VI
Replies: 7638
Views: 1712476

Re: What Book Are You Currently Reading? Part VI

Currently reading The Surgeon of Crowthorne by Simon Winchester (1998). It is the story of two men, mainly the title character (I suspect, not having read the whole thing yet). One of the men (Sir James Murray, not the title character) was the primary editor of the Oxford English Dictionary from 1879 until 1915. The other (Dr. William Minor) was a retired army Surgeon who had served in the Civil War and was a primary researcher for the defining quotations used in the OED. The odd thing is, Dr. Murray was a self-confessed and convicted murderer serving a life sentence in England's Broadmoor Lunatic Asylum! (Broadmoor is located near Crowthorne.) AKA The Professor and the Madman per its American publication. BTW, Dr. Minor, rather than "...
by FabLab
Wed Sep 10, 2014 3:02 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

Currently reading A Spy Among Friends: Kim Philby and the Great Betrayal by Ben Macintyre. Where fact becomes more fascinating than fiction.
by FabLab
Tue Jun 03, 2014 2:57 pm
Forum: Personal Consumer Issues
Topic: Favorite guitarist...
Replies: 207
Views: 29607

Re: Favorite guitarist...

That's easy: Ry Cooder, Leo Kotke, John Fahey!

And, of course, Deep Gap, NC's own: Doc Watson.
by FabLab
Tue May 06, 2014 11:12 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

Currently re-reading Mere Christianity by C.S. Lewis. Something I like to return to over time.
by FabLab
Thu Apr 03, 2014 8:44 am
Forum: Personal Investments
Topic: Should I include my pension in my portfolio?
Replies: 16
Views: 2733

Re: Should I include my pension in my portfolio?

Didn't read a great deal into the thread. But if you have a pension, then the answer to your question IMHO is NO. It becomes, sometime in the future, an income stream. However, if you leave the employer and receive a lump sum distribution with the intention of plowing into your portfolio (AA, etc.), then the answer becomes Yes. At such time as that happens.

Cheers & good luck!
by FabLab
Sat Mar 01, 2014 2:18 pm
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

I am dropping my other reading for Vassily Aksyonov's The Island of Crimea (1979). It's an alternative history based on an assumption that Crimea is an island rather than a peninsula. This premise would have enabled the retreating White Army to defend Crimea against the Reds in the 1920s, and turn it into a Slavic version of Hong Kong. The book is providential in the light of the current events unfolding in Ukraine and Crimea. An amazing coincidence is that Crimea's newly-chosen premier (as of 28 Feb 2014) is called Sergiy Aksyonov. I am reading it in Russian, but an English version is available on Amazon for $0.65, used. The author was quite interesting: He was described as "a colourful man, with his trademark moustache, elegant suit...
by FabLab
Wed Jan 22, 2014 1:07 pm
Forum: Personal Investments
Topic: Rebalancing, AA, and Bonds
Replies: 12
Views: 1385

Re: Rebalancing, AA, and Bonds

BillyG,
Let's say I want a balanced portfolio of 50/50 stocks/bonds. (I do and I have.) Well, once I know where I'm going, I'm a big fan of getting there. My total stock market indexes had run up big, and things were out of whack. Not a bad position to be in, of course. So, in the past week or so, I performed the exercises necessary to return to my target AA (50/50): I exchanged shares in stock funds for those in bond funds. It may seem counter-intuitive when stocks are running, but if I hadn't done so, what real meaning would having a target AA have for me?
by FabLab
Thu Jan 02, 2014 11:30 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

Currently reading Surprised by Joy: The Shape of My Early Life by C.S. Lewis.
by FabLab
Wed Dec 11, 2013 8:31 pm
Forum: Investing - Theory, News & General
Topic: Estimating the True Cost of Retirement
Replies: 39
Views: 4987

Re: Estimating the True Cost of Retirement

EternalOptimist wrote: If I don't spend I don't need money.
This came to me when I was twelve. Then I realized that if I didn't spend another penny, I had all the money I would ever need.
by FabLab
Fri Nov 22, 2013 11:38 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

The Lay of the Land by Richard Ford. It's the last of the Bascombe trilogy. Ford is fast becoming one of my favorite contemporary American novelists.

Also have out of the library Pynchon's Bleeding Edge, which I'll get to next.
by FabLab
Fri Nov 22, 2013 11:31 am
Forum: Personal Consumer Issues
Topic: Recommend a good pair of slippers!
Replies: 47
Views: 9896

Re: Recommend a good pair of slippers!

The Gokeys are excellent. Currently, I wear these from LL Bean and have grown to like them:
http://www.llbean.com/llb/shop/47870?fe ... tId=825456

I would not, however, wear either canoeing. As someone who canoes frequently, I go out only with non-leather footwear. Some river-running shoe from the usual suspects.
by FabLab
Fri Jul 26, 2013 10:02 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1560505

Re: What Book Are You Currently Reading? Part V

Currently reading Canada by Richard Ford.
by FabLab
Tue Jun 18, 2013 7:34 am
Forum: Investing - Theory, News & General
Topic: Modern Portfolio Theory
Replies: 89
Views: 13776

Re: Modern Portfolio Theory

Staythecourse, Analysis in finance is done on past data because there's no alternative. The important thing is not to take it too seriously, due to the lack of sufficient data and uncertainty whether the data we have is applicable to the future. We only have about three independent data points if we want to look at 30 year periods. We don't know if the conditions that generated those data points are applicable to the future. If not, we have even fewer useful data points. It's similar to what's been called the streetlight effect. A policeman sees a man searching for something under a streetlight and asks what the man has lost. He says he lost his keys and they both look under the streetlight together. After a few minutes the policeman asks ...
by FabLab
Sun Jun 16, 2013 10:12 am
Forum: Investing - Theory, News & General
Topic: Modern Portfolio Theory
Replies: 89
Views: 13776

Re: Modern Portfolio Theory

Markowitz on how to apply MPT: Dr. Markowitz first got to choose how to divide his assets between a stock fund and a bond fund not long after publishing his pioneering article "Portfolio Selection" in the prestigious Journal of Finance. Following his own breakthroughs, he should have made intricate calculations, based on historical averages, to find the optimal trade-off between risk and return. But, Dr. Markowitz told me, that isn't what he did: "Instead, I visualized my grief if the stock market went way up and I wasn't in it -- or if it went way down and I was completely in it. My intention was to minimize my future regret." Dr. Markowitz paused, then added wryly: "So I split my contributions 50/50 between bonds...