Search found 6519 matches

by Doc
Thu Sep 29, 2016 2:56 pm
Forum: Investing - Theory, News & General
Topic: reit allocation
Replies: 25
Views: 1465

Re: reit allocation

There are significant differences. Instead of running a business providing a service or selling a good for a fee, Take a look at the Global Industry Classification Standard. https://en.wikipedia.org/wiki/Global_Industry_Classification_Standard There are some eleven categories. Do you really want to...
by Doc
Thu Sep 29, 2016 10:55 am
Forum: Investing - Theory, News & General
Topic: reit allocation
Replies: 25
Views: 1465

Re: reit allocation

REITs are equities.......................... S&P DOW JONES INDICES AND MSCI ANNOUNCE AUGUST 2016 CREATION OF A REAL ESTATE SECTOR IN THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS®) STRUCTURE https://www.msci.com/documents/10199/6aac98e5-a0f6-485c-ad7c-20394024e07f Google "reits separate...
by Doc
Wed Sep 28, 2016 7:31 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs. 2% CD
Replies: 23
Views: 4061

Re: Total Bond Market vs. 2% CD

Kevin and I have been going round and round on the CD/Treasury question for some time. We are apparently talking past each other because we are coming from different directions. He is trying to get the most return from his "safe" FI investment and I am trying to get the best FI "diver...
by Doc
Wed Sep 28, 2016 7:24 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market strange transactions
Replies: 14
Views: 1868

Re: Vanguard Prime Money Market strange transactions

What happened in some accounts I manage is that a new Prime MM fund was initially the settlement fund after the brokerage and formerly linked mutual fund accounts were upgraded . This is not the issue. We upgrade in 2014 . The "problem" is that they need three business days to make the ch...
by Doc
Wed Sep 28, 2016 5:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market strange transactions
Replies: 14
Views: 1868

Re: Vanguard Prime Money Market strange transactions

TonyDAntonio wrote:Not sure how long it will take for the funds to go from one settlement account to the other.

I don't think they move by themselves. I think you have to sell the old account with money going to your (now new) settlement account.

Brokerage platform!
by Doc
Wed Sep 28, 2016 10:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market strange transactions
Replies: 14
Views: 1868

Re: Vanguard Prime Money Market strange transactions

There is now a note on both accounts: "A change in settlement fund is in progress for this account." Only one of our three accounts is in the "transition" period. It shows zero "available balance" with a negative "total debits and credits" that exactly offset...
by Doc
Tue Sep 27, 2016 3:22 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs. 2% CD
Replies: 23
Views: 4061

Re: Total Bond Market vs. 2% CD

This is all about "insurance" protection in an equity market crash and the cost of that insurance. So as I've said many times, if you want some of this potential (not certain) upside in a flight-to-quality scenario, say to rebalance into stocks, then you can hold an appropriate amount in a...
by Doc
Tue Sep 27, 2016 12:39 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market vs. 2% CD
Replies: 23
Views: 4061

Re: Total Bond Market vs. 2% CD

The CD is a much better deal on a risk-adjusted basis. This is easy to see by comparing to the 5-year Treasury yield of 1.13%. Both CD (I'm assuming FDIC insured) and Treasury have essentially no credit risk, and ignoring any early withdrawal option for the CD they have the same term risk (aka inte...
by Doc
Mon Sep 26, 2016 5:33 am
Forum: Investing - Theory, News & General
Topic: [Vanguard Core Bond Fund opens to investors]
Replies: 123
Views: 16954

Re: [Vanguard Core Bond Fund opens to investors]

IIRC the detailed holdings on the advisor site can be sorted by "name". The TIPS should then be all together and be easy to sum. M* treats all maturities less than one year as cash. Vanguard does not. Important here? There was a data glitch in the March M* data for Vanguard Treasury funds....
by Doc
Sat Sep 24, 2016 8:57 am
Forum: Investing - Theory, News & General
Topic: Revisiting tax-efficient fund placement and foreign tax credits
Replies: 8
Views: 638

Re: Revisiting tax-efficient fund placement and foreign tax credits

Keep in mind volatility, not just dividends are relevant. I just tax loss harvested after the Brexit drop, which you can't accomplish with ira/401k. This is a relative not absolute decision. Many market and personal factors. In addition to TLH the tax on capital gains also needs to be considered. B...
by Doc
Mon Sep 19, 2016 3:46 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund vs. Individual Bonds
Replies: 20
Views: 1635

Re: Bond Fund vs. Individual Bonds

You will likely end up in the same place because even if rates go up and the fund falls in price it will be reinvesting into new bonds with higher coupons. And if rates go down you will end up lower. Barring default an individual bond will give you at maturity exactly what you thought it would when...
by Doc
Mon Sep 19, 2016 3:02 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5718

Re: The states we won't buy munis from, update

I would argue that diversification generally reduces risk ... You're arguing with the wrong guy. :D That is the biggest benefit of mutual funds, ability to minimize idiosyncratic risks. The question for investors is really are these risks worth bearing? Our own view is no since the higher yields ar...
by Doc
Mon Sep 19, 2016 1:42 pm
Forum: Investing - Theory, News & General
Topic: Are REITs Out The Window For Us Factor Junkies?
Replies: 12
Views: 1893

Re: Are REITs Out The Window For Us Factor Junkies?

The logical flaw in that argument is the assumption that the valuation of other quoted stocks does not include exposure to real estate in their valuations. Valuation? Logical flaw? If you want to own the "total economic market" you have to add REITS to a "Total Stock Market" por...
by Doc
Mon Sep 19, 2016 1:30 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5718

Re: The states we won't buy munis from, update

Buying an all states fund is safer than buying a one state fund. So you are saying that a multi-state fund with a AA rating is safer than a single state, AAA rated fund? Your definition of "safety" is a lot different than mine. If a "black swan" event occurs only in one state we...
by Doc
Mon Sep 19, 2016 12:40 pm
Forum: Investing - Theory, News & General
Topic: The states we won't buy munis from, update
Replies: 50
Views: 5718

Re: The states we won't buy munis from, update

Hi, I'm sure I missed another thread that would probably have clarified this, but I will go ahead and ask my (dumb) question nonetheless: I live in Massachusetts and have been loading up on Vanguard MA Tax Exempt fund (VMATX) in my taxable account. Should I not be doing that? Or is this list only r...
by Doc
Mon Sep 19, 2016 8:21 am
Forum: Investing - Theory, News & General
Topic: Are REITs Out The Window For Us Factor Junkies?
Replies: 12
Views: 1893

Re: Are REITs Out The Window For Us Factor Junkies?

It's not so much about "tilting" as it is that most commercial real estate is not traded on the stock market. If you want to own the "total economic market" you have to add REITS to a "Total Stock Market" portfolio. US Equity REITs have a market capitalization of about ...
by Doc
Sat Sep 17, 2016 10:50 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

Angst wrote:Yikes! Of course, you're right.
I'm afraid that when I'm thinking about "TIPS", my tunnel-vision brain sees nothing but the 30-yr variety.

And mine sees everything but the 30-yr variety. We should talk more. :D
by Doc
Sat Sep 17, 2016 8:15 am
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

I see that one needs to be well versed in the rates/yields/discounts current at the time of the auction in order to enter a reasonable bid No, individuals in general, do not enter competitive bids. The discount rate or price is set by the competitive bid process by large purchasers like banks, inve...
by Doc
Fri Sep 16, 2016 10:04 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

Angst wrote:
FIREchief wrote:
Hector wrote: At which brokerage firm do you have account that you can buy individual treasuries at auction for free in retirement account?

Fidelity

You can add Vanguard to that list.

& Schwab.
by Doc
Fri Sep 16, 2016 3:20 pm
Forum: Investing - Theory, News & General
Topic: Nisiprius Investments Unveils New MDF Factor-Based Fund
Replies: 44
Views: 2988

Re: Nisiprius Investments Unveils New MDF Factor-Based Fund

steve roy wrote:Is this thread in danger of being locked? And the key thrown away?

Is this thread Nisi in danger of being locked? And the key thrown away?

But maybe he has already appealed.
by Doc
Fri Sep 16, 2016 3:19 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

... I plan to fund it entirely with TIPS bought at auction and held to maturity. There is no good reason to restrict purchases to the auction. Spreads are low on Treasuries so transaction costs are minimal. The tax complexity of possibly having Amortized Bond Premium (ABP) as well as the OID has di...
by Doc
Thu Sep 15, 2016 3:26 pm
Forum: Investing - Theory, News & General
Topic: the upcoming bond bubble
Replies: 16
Views: 1975

Re: the upcoming bond bubble

The stock fund was basically flat: $10,000 invested in the stock fund was worth $10,078. Were stocks "routed" by the shock of the fall in bonds? Next time will be different! :D Just look at the end of last week when Fed "noise" sent the Dow into a hissy fit. And the Fed didn't e...
by Doc
Thu Sep 15, 2016 3:11 pm
Forum: Investing - Theory, News & General
Topic: Monsanto
Replies: 14
Views: 1819

Re: Monsanto

batpot wrote:That is crazy.
Why would Bayer agree to such a thing?

They want Monsanto's distribution network very badly.
by Doc
Thu Sep 15, 2016 3:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Unusual? Trade Warning
Replies: 7
Views: 1311

Re: Vanguard Unusual? Trade Warning

I found out why I hadn't seen the unusual "in general, you must have sufficient funds ... " admonishment. I was attempting to place an order for Monday's Treasury auction. I just tried to buy an ETF without available funds and got the standard warning: This purchase exceeds the current fun...
by Doc
Thu Sep 15, 2016 11:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard Unusual? Trade Warning
Replies: 7
Views: 1311

Vanguard Unusual? Trade Warning

I recently attempted to place a buy order on the Vanguard Brokerage Platform and got a trade warning that I don't recall ever seeing before. In general, you must have sufficient funds in your account at the time you place a trade. If you fail to pay for your trade on the settlement date, your positi...
by Doc
Thu Sep 15, 2016 10:36 am
Forum: Investing - Theory, News & General
Topic: the upcoming bond bubble
Replies: 16
Views: 1975

Re: the upcoming bond bubble

We'll probably see lower returns sometime in the future for a period but I doubt we'll see a bubble bursting effect. Bonds = fixed income. The returns on what we own now are not going to change. What we buy in the future will probably have higher returns because the Fed is going to raise interest r...
by Doc
Thu Sep 15, 2016 9:35 am
Forum: Investing - Theory, News & General
Topic: Exodus from Money Market Funds?
Replies: 24
Views: 2986

Re: Exodus from Money Market Funds?

While I claim no expertise in this "opinion", nonetheless, I believe that Vanguard could (and would, to the extent allowable) back (or perhaps "subsidize") its MM funds with its extensive resources. The may not be the case for some other MM funds. It is just the opposite. It's n...
by Doc
Thu Sep 15, 2016 8:03 am
Forum: Investing - Theory, News & General
Topic: the upcoming bond bubble
Replies: 16
Views: 1975

Re: the upcoming bond bubble

I know that the general sentiment on this board is that there is no bond bubble and nothing to worry about in that sector, but let's pretend for a second that there actually was one. What do you suppose this would do to the rest of the market? Would the shock rout stocks as well ? Yes. But, I have ...
by Doc
Thu Sep 15, 2016 7:22 am
Forum: Investing - Theory, News & General
Topic: Monsanto
Replies: 14
Views: 1819

Re: Monsanto

Update:

Reuters wrote:The transaction includes a $2-billion break-up fee that Bayer will pay to Monsanto should it fail to get regulatory clearance.

http://www.reuters.com/article/us-monsa ... SKCN11K128
by Doc
Thu Sep 15, 2016 5:58 am
Forum: Investing - Theory, News & General
Topic: Monsanto
Replies: 14
Views: 1819

Re: Monsanto

53% of Institutional investors believe the agreement in its current form will not pass muster with DOJ and FTC, hence there is nearly a 50/50 shot of the deal failing and one very expensive going away present for Bayer if they lose paid for by the shareholders of Monsanto - the gift? A whopping $2 ...
by Doc
Wed Sep 14, 2016 3:56 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

Doc, did you see this thread? WSJ: Bank Balance better predictor of happiness than Total Wealth. Saw the reference haven't read it. Does it have to do with comparing T-bills with toilet paper. (Sorry I just finished reading the The Mandibles: A Family, 2029-2047) https://www.bogleheads.org/forum/vi...
by Doc
Wed Sep 14, 2016 3:36 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

surfstar wrote:
Doc wrote:Any thoughts? (Other than I am paranoid.)


Nope. (You already nailed it)


No not really. I just wear both a belt and suspenders as a fashion statement. :D
by Doc
Wed Sep 14, 2016 3:34 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

I'm just a newbie, but I guess I am confused by what you're trying to do. You say you are after more liquidity, but isn't a short term corporate bond fund already quite liquid? The underlying corporate bonds are less liquid. Just get quotes for highly rated corporates and similar duration Treasurie...
by Doc
Wed Sep 14, 2016 9:09 am
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

I think one has to guard against our natural storytelling instincts. Thinking about what to do in a single, simple contingency is hard enough. But if I understand your question, you are saying: suppose that a) there is unprecedented dissatisfaction after the election, and that b) the result is not ...
by Doc
Wed Sep 14, 2016 8:41 am
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

Regarding bands: Since I am very close to 50/50 I need a drop of more than 10% to trigger my 5% rebalancing band. I only rebalance between stocks and bonds so it takes a relatively big move for me to even run the numbers and see if I've exceeded the band limits. 1) If you are at 46/54 going into the...
by Doc
Wed Sep 14, 2016 8:37 am
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

I'll note that you still haven't addressed this point: since we already know the winner will be deeply unpopular, as you say, to 75% of Americans, why haven't markets already crashed? I haven't answered it becasue the answer may get us into a discussion of politics and then the moderators would get...
by Doc
Tue Sep 13, 2016 4:58 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

I'm not sure I would call any move related to an election outcome insurance. It would seem to me to be more like a bet. There were some individuals who did not expect Obama to win the last election. The S&P dropped by about 70 points over a few days in early November. It took about a month to r...
by Doc
Tue Sep 13, 2016 4:12 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

Any thoughts? (Other than I am paranoid.) I have thought about this issue at length. I have decided to stay the course. To explain further, I am not changing my plan. Also, I decided I am not going to worry. Good luck, Doc. I am staying the course. I'm not changing my AA at all. I am only changing ...
by Doc
Tue Sep 13, 2016 3:56 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

kay - I'll bite - What's different this time and how will that impact the market? 1) Usually 50% of the electorate is disappointed with the results of the election. This time 75% will be disappointed because half to those on the "winning" side don't like their candidate either. 2) Fed (in...
by Doc
Mon Sep 12, 2016 5:22 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

I thought about that. But I belive the price differential if any is going to be in my favor. Either the price is going to go down because the Fed raises rates and/or the price is going to go down along with the stock market. On this premise you'd probably want to sell your stocks rather than worryi...
by Doc
Mon Sep 12, 2016 1:22 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Re: Presidential Election Insurance, Use T-Bills?

Your method of reducing risk is still valid, if that's what you want, but it might cost you more than you think. "The difference in return between the two for 90 days" could include an expensive (to miss) repricing of corporate bond risk, in addition to the yield difference that you're pr...
by Doc
Mon Sep 12, 2016 1:07 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

For me ideally, I would like to see a low cost index fund for inflation bonds that provided cash flow from dividends each month. How would they pass on the tax from the inflation adjustment that you would be required to pay in a taxable account tho? -- well not exactly passing on the tax but the ta...
by Doc
Mon Sep 12, 2016 12:55 pm
Forum: Investing - Theory, News & General
Topic: Presidential Election Insurance, Use T-Bills?
Replies: 65
Views: 3772

Presidential Election Insurance, Use T-Bills?

This is not meant as a political discussion. Please keep it that way. The upcoming presidential election will be somewhat different than past elections in that some 75% will be disatisfied instead of the usual 50%. This might cause stock market fluctuations that are atypical. Should we "insure&...
by Doc
Mon Sep 12, 2016 12:40 pm
Forum: Investing - Theory, News & General
Topic: TIPS - Did you give up?
Replies: 391
Views: 43378

Re: TIPS - Did you give up?

For me ideally, I would like to see a low cost index fund for inflation bonds that provided cash flow from dividends each month. Hard to do. I think TIPS only have coupon payments 4 times a year - Jan, Apr, July, Oct. There are also "accrual" periods based on IRS regs that discuss beginni...
by Doc
Sat Sep 10, 2016 6:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard brokerage will not convert mutual fund to ETF
Replies: 57
Views: 4074

Re: Vanguard brokerage will not convert mutual fund to ETF

The Good: I realized there was a different number to call 1-800-499-9829. The call was answered quickly, by a very professional rep who immediately understood what I wanted ... Where did this magic number come from? The cat's out of the bag. :o Now it won't work much longer. :( Please all, don't ab...
by Doc
Sat Sep 10, 2016 4:38 pm
Forum: Investing - Theory, News & General
Topic: When is Ex-Dividend Date (VTI/VXUS)?
Replies: 11
Views: 1055

Re: When is Ex-Dividend Date (VTI/VXUS)?

I think it is an education of the client problem. In one link Vanguard writes about Declaration Date. In another Record Date. And then on the distribution tabs, Vanguard has yet more names of dates: ex-Dividend Date Reinvest Date Payable Date, and the previously mentioned Declaration Date is no whe...
by Doc
Sat Sep 10, 2016 8:49 am
Forum: Investing - Theory, News & General
Topic: When is Ex-Dividend Date (VTI/VXUS)?
Replies: 11
Views: 1055

Re: When is Ex-Dividend Date (VTI/VXUS)?

I think it is an education of the client problem. In one link Vanguard writes about Declaration Date. In another Record Date. And then on the distribution tabs, Vanguard has yet more names of dates: Once everything gets over to the new "upgraded" brokerage platform everything will improve...
by Doc
Thu Sep 08, 2016 1:16 pm
Forum: Investing - Theory, News & General
Topic: Fidelity competing harder w/Vanguard
Replies: 92
Views: 8896

Re: Fidelity competing harder w/Vanguard

On their website https://www.fidelity.com/mutual-funds/i ... ndex-funds they directly equate these funds side-by-side and tout their 1bp cost advantage. But their 1bp discount is just for something similar, not the same. Who has lower expenses in index investing? In a head-to-head comparison of our...
by Doc
Thu Sep 08, 2016 12:00 pm
Forum: Investing - Theory, News & General
Topic: Anyone Switched to Vanguard Account Upgrade?
Replies: 43
Views: 12878

Re: Anyone Switched to Vanguard Account Upgrade?

So what happens if I refuse to change? I really do not see any benefit to me for the change, and it sounds like it might chew up several hours on my time fixing things this breaks and trying to understand the new system. I don't think you will have a choice. When they started this they said "e...

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