Search found 4208 matches

by JoMoney
Tue Aug 22, 2017 10:29 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 15
Views: 1225

Re: Vanguard Announces Plans To Launch Total Corporate Bond ETF

" The fund will be structured as an ETF of ETFs, investing directly in three existing, low-cost ETFs: Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT), and Vanguard Long-Term Corporate Bond ETF (VCLT). " Weird. I would think one of the advantages o...
by JoMoney
Mon Aug 21, 2017 12:31 am
Forum: Investing - Theory, News & General
Topic: I own no international stocks. Can you guess why?
Replies: 167
Views: 11884

Re: I own no international stocks. Can you guess why?

Because you no longer own stocks? I have never owned international, so to me this is not an odd question. Can't wait for the big reveal!! :thumbsup That was my thought as well. I've never had a international "allocation", and haven't owned any ex-US/S&P500 stocks since I started indexing. Buffett a...
by JoMoney
Sun Aug 20, 2017 9:15 am
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 44
Views: 3907

Re: Boston Globe: Smart Investors May be Killing Capitalism

...Why do you believe only a very small proportion of investors need to be active for price discovery to work? Do you have any supporting evidence? Mr. Bogle has suggested that what indexing does, is neutralizes part of the market that no longer gets actively traded. He points to the fact that volu...
by JoMoney
Sat Aug 19, 2017 5:23 pm
Forum: Investing - Theory, News & General
Topic: Here is a criticisim of active management I don't get
Replies: 24
Views: 2247

Re: Here is a criticisim of active management I don't get

http://www.etf.com/sections/index-investor-corner/active-large-cap-hot-streak-doesnt-add?nopaging=1 If I am an active manager who does not pick stocks as well as the best stock picker but am smart enough to in 2017 invest some percentage of my fund in european stocks that are doing well why should ...
by JoMoney
Sat Aug 19, 2017 5:14 pm
Forum: Investing - Theory, News & General
Topic: How Might Bogle View Proxy Vote Prop 7? Here's a Hint.
Replies: 9
Views: 1775

Re: How Might Bogle View Proxy Vote Prop 7? Here's a Hint.

There are already "Socially Responsible" index funds, trying to change a fund that doesn't have that objective is ridiculous. The people who want that should switch to a fund that meets their objectives.
by JoMoney
Thu Aug 17, 2017 6:10 am
Forum: Investing - Help with Personal Investments
Topic: Magic Formula
Replies: 6
Views: 936

Re: Magic Formula

It's been discussed on this board before if you search. At the end of 2010 the creator of the 'Magic Formula' created some mutual funds around the idea http://www.kiplinger.com/article/investing/T041-C007-S001--magic-formula-investing-conjures-up-4-new-stock-f.html Formula Investing U.S. Value Selec...
by JoMoney
Mon Aug 14, 2017 9:05 pm
Forum: Investing - Help with Personal Investments
Topic: SP500/Total Stock Market
Replies: 23
Views: 1435

Re: SP500/Total Stock Market

For a longer data series on Monringstar, here's some links: Ibbotson Associates US Large Stocks (S&P 500) since 1925 Ibbotson Associates US Large Stocks (S&P 500) INFLATION ADJUSTED since 1925 Wilshire 5000 (Total Stock Market) & S&P 500 Total Return since 1970 S&P 500 (1936) Series (There are a cou...
by JoMoney
Sun Aug 13, 2017 3:21 am
Forum: Investing - Theory, News & General
Topic: Real P/E of ETF's and Mutual Funds - are the published ones misleading
Replies: 26
Views: 1372

Re: Real P/E of ETF's and Mutual Funds - are the published ones misleading

FWIW, There's an old WSJ article that also confirms the idea that Vanguard's methodology includes negative earnings http://archive.is/IcnyG ... Yet even the inclusion of unprofitable companies doesn't guarantee that ETF providers will come up with the same P/E for their funds as might be calculated ...
by JoMoney
Sat Aug 12, 2017 12:49 pm
Forum: Investing - Theory, News & General
Topic: "3 Reasons Index Investors Deserve Perdition (or Not)"
Replies: 3
Views: 793

Re: "3 Reasons Index Investors Deserve Perdition (or Not)"

Hah.. :D
"Verdict: Not guilty. If indexers are to burn, this will not be the sin that sparks the blaze."
Thank's for posting.
by JoMoney
Fri Aug 11, 2017 7:46 am
Forum: Investing - Theory, News & General
Topic: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)
Replies: 55
Views: 4840

Re: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)

It's hard for an index investor to "stay the course" tracking an index when the mutual fund company won't stop monkeying with what index their fund is going to track. At least with this change, it's towards better quality/safety, and if some people want the higher risk stuff they can mix it in to th...
by JoMoney
Fri Aug 11, 2017 7:04 am
Forum: Investing - Theory, News & General
Topic: Why is Vanguard Short Term Treasury fund rated BBB credit quality?
Replies: 32
Views: 2581

Re: Why is VANGUARD SHORT TERM TREASURY fund rated BBB credit quality?

FWIW, Vanguards ratings aren't their own, but that of major ratings agencies as describe in the annual reports Vanguard files with SEC Credit-quality ratings are obtained from Barclays and are from Moody's, Fitch, and S&P. When ratings from all three agencies are used, the median rating is shown. Wh...
by JoMoney
Thu Aug 10, 2017 11:54 pm
Forum: Investing - Theory, News & General
Topic: New Dividends Appreciation data series - backtesting
Replies: 104
Views: 7183

Re: New Dividends Appreciation data series - backtesting

Despite all the hype of how well a dividend based portfolio strategy would have performed, I'll point out that there are real world funds like Vanguard (and FIdelity) Equity Income Funds, and Vanguard's Dividend Growth fund, which haven't had such spectacular results and have decades of history to l...
by JoMoney
Thu Aug 10, 2017 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: What Short-term investment option?
Replies: 12
Views: 932

Re: What Short-term investment option?

Personally, if liquidity was a concern, I would be leery of the corporate bonds/investment-grade fund. Certainly it would be better than a junk bond fund, but it could still have issues. Here's a link to a Morningstar Chart of what happened in the 2008-2009 period when liquidity dried up on corporat...
by JoMoney
Thu Aug 10, 2017 11:11 am
Forum: Investing - Theory, News & General
Topic: World’s Largest Companies - Revenue vs. Market Cap
Replies: 6
Views: 559

Re: World’s Largest Companies - Revenue vs. Market Cap

I think you're mixing up a lot of things trying to contrast in this way. Revenue is not profit, and Vanguard Index funds are float adjusted which makes a big difference when looking at how much weight is put on a company which may be mostly owned by the state or private, but may have some fraction a...
by JoMoney
Tue Aug 08, 2017 3:01 pm
Forum: Investing - Theory, News & General
Topic: Morning Wave's Telltale Charts
Replies: 5
Views: 837

Re: Morning Wave's Telltale Charts

bertilak wrote:...How is that site working for you?
It's not.
:confused
by JoMoney
Tue Aug 08, 2017 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: When does renting make sense
Replies: 112
Views: 8772

Re: When does renting make sense

You will spend more on your housing expense when you buy a house. KlangFool [Citation needed] Here's one.... ...Housing expenditures remained markedly different for homeowners and renters. Homeowners continued to spend a larger sum of money on housing than renters did; however, renters spent a larg...
by JoMoney
Tue Aug 08, 2017 1:21 pm
Forum: Investing - Theory, News & General
Topic: news yesterday that Buffett has $100,000,000,000 in cash now
Replies: 65
Views: 8449

Re: news yesterday that Buffett has $100,000,000,000 in cash now

Mr. Buffett has offered his sage advice with a crystal clear plan for what most investors should do, and trying to time the market isn't part of it. Average your contributions over time, invest in a low-cost broad average like the S&P 500/Total Stock Market, and you'll do much better than those tryi...
by JoMoney
Tue Aug 08, 2017 2:19 am
Forum: Personal Consumer Issues
Topic: Las Vegas Slot Machine Strategy (maximize entertainment value)
Replies: 31
Views: 2303

Re: Las Vegas Slot Machine Strategy (maximize entertainment value)

A casino will be trying to maximize their take on each machine / amount of floor space. A machine that allows you to play @ 1 cent a spin, will likely have lower odds / payout percentage than one with a higher minimum spin cost. i.e. A machine that allows 10cents per spin may payout 8cents on averag...
by JoMoney
Mon Aug 07, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Seems like both Stocks and bonds have equal risk now...
Replies: 26
Views: 3150

Re: Seems like both Stocks and bonds have equal risk now...

High quality / Government backed bonds are not risky at all if you keep the maturity (or relative portfolio duration) aligned to your need of the money. A bond is a promise of precisely how much money you'll be paid in interest, and when you'll get the principle back. Stocks offer no such promise. Y...
by JoMoney
Sun Aug 06, 2017 11:43 pm
Forum: Investing - Theory, News & General
Topic: Greenspan: Look Out When Bonds Pop
Replies: 58
Views: 8212

Re: Greenspan: Look Out When Bonds Pop

... If you have a chance to ask, ask the bond apocalypse people just how overvalued, in percent , they think the Barclay's Aggregate index is. A year ago, Greenspan gave a couple interviews where he was saying very similar stuff. At that time, 10yr Treasuries were sub 2% and he was explaining how u...
by JoMoney
Sat Aug 05, 2017 2:58 am
Forum: Investing - Theory, News & General
Topic: The Rise From 7,000 to 22,000
Replies: 49
Views: 6410

Re: The Rise From 7,000 to 22,000

... Many posts in other threads argue that dividends are irrelevant or poor uses of profits. I think dividends are simply a traditional aspect of investing in equities. I think you may be taking that out of context, dividends are a crucial component of the total return on investment. It's the focus...
by JoMoney
Sat Aug 05, 2017 1:03 am
Forum: Investing - Theory, News & General
Topic: Vanguard Puts Rivals on Notice: Fee Wars Will Only Heat Up
Replies: 62
Views: 5864

Re: "Vanguard Puts Rival Firms On Notice: Fee Wars Will Only Heat Up"

Competition is heating up, and fees are definitely coming down. There was an announcement from Schwab to start a new ETF with a management fee of 0 to 2 basis points: https://www.bloomberg.com/news/articles/2017-07-14/watch-out-blackrock-schwab-is-back-with-first-etf-since-2013 ...The Schwab 1000 In...
by JoMoney
Fri Aug 04, 2017 10:10 pm
Forum: Investing - Theory, News & General
Topic: Why Do Stocks Keep Hitting Records? msn/WSJ
Replies: 25
Views: 3810

Re: Why Do Stocks Keep Hitting Records? msn/WSJ

...One concern is that persistent index buying elevates valuations across the board and that, should market turmoil erupt, investor index buying would turn to selling, leaving the broader market acutely vulnerable... People buying stocks in general will push the price of stocks up regardless of wha...
by JoMoney
Fri Aug 04, 2017 8:44 am
Forum: Investing - Theory, News & General
Topic: Greenspan: Look Out When Bonds Pop
Replies: 58
Views: 8212

Re: Greenspan: Look Out When Bonds Pop

Greenspan was on CNBC today, with more of the same https://www.cnbc.com/2017/08/04/greenspan-bond-bubble-about-to-break-because-of-abnormally-low-interest-rates.html ..."I have no time frame on the forecast," he said. "I have a chart which goes back to the 1800s and I can tell you that this particul...
by JoMoney
Thu Aug 03, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: The Rise From 7,000 to 22,000
Replies: 49
Views: 6410

Re: The Rise From 7,000 to 22,000

goblue100 wrote:
adam1712 wrote:
Leesbro63 wrote:What is the return from the first time the DOW hit 10,000?
120%
About 4.5%, annualized.
On a Total Return basis (including dividends), since the DJIA went over in 10,000 in March of 1999, an investment in the DJIA would have returned a CAGR over 7%
MStar Chart
by JoMoney
Thu Aug 03, 2017 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Do you have to rebalance??
Replies: 16
Views: 1503

Re: Do you have to rebalance??

No, but it kind of begs the question of what/why you have your allocation to begin with, if you don't think there are unique risks that you want to keep within some specific threshold on those different assets. Some people hold stocks at global market-cap weights and don't rebalance, they may own so...
by JoMoney
Wed Aug 02, 2017 1:17 pm
Forum: Investing - Theory, News & General
Topic: Greenspan: Look Out When Bonds Pop
Replies: 58
Views: 8212

Re: Greenspan: Look Out When Bonds Pop

...The Fed is not in control of the natural real interest rate... Nor does the Fed control long term rates, as Greenspan mentioned in the article “By any measure, real long-term interest rates are much too low and therefore unsustainable,” the former Federal Reserve chairman, 91, said in an intervi...
by JoMoney
Wed Aug 02, 2017 8:43 am
Forum: Investing - Theory, News & General
Topic: A Secret of the Index Fund’s Success?
Replies: 25
Views: 3055

Re: A Secret of the Index Fund’s Success?

. Thoughts? I'm fully on board with low-cost broad-market indexing, but I also think holding a diverse selection of individual large-cap stocks can work as well, albeit hard to justify why you would want to given the extremely low cost simplicity and broad diversification of indexing. The key thoug...
by JoMoney
Wed Aug 02, 2017 7:25 am
Forum: Investing - Theory, News & General
Topic: Rising dividends good sign or neutral or bad
Replies: 14
Views: 1284

Re: Rising dividends good sign or neutral or bad

... the question that I have is if rising dividends portend a good outlook for stocks in general...? Dividend policy is very sensitive, investors get very grumpy when a dividend is cut, so management is usually reluctant to raise or institute a regular dividend if they don't expect to be able to co...
by JoMoney
Tue Aug 01, 2017 11:06 am
Forum: Investing - Theory, News & General
Topic: Market anomalies versus the equity risk premium
Replies: 23
Views: 1208

Re: Market anomalies versus the equity risk premium

Epsilon Delta wrote:.
Standard deviation doesn't explain the 'equity premium puzzle' either.
by JoMoney
Tue Aug 01, 2017 9:20 am
Forum: Investing - Theory, News & General
Topic: Has the "bond bubble" caused you to change your allocation?
Replies: 90
Views: 9053

Re: Has the "bond bubble" caused you to change your allocation?

...Per Bob Brinker's recommendation, I've been moving to shorter term duration bond funds, but there has been no payoff and Bob's been talking about it for three years. He's been saying that for longer than three years. I haven't listened to the show in three years, but I can remember him suggestin...
by JoMoney
Tue Aug 01, 2017 3:09 am
Forum: Investing - Theory, News & General
Topic: Market anomalies versus the equity risk premium
Replies: 23
Views: 1208

Re: Market anomalies versus the equity risk premium

I believe it's an imperative to our economic system that over the long-run (which can be longer then most people would want) invested capital will return more than the cost of the capital to borrow it. I don't believe there is any intrinsic reason why the variations in price to expected future value...
by JoMoney
Tue Aug 01, 2017 2:49 am
Forum: Investing - Theory, News & General
Topic: Has the "bond bubble" caused you to change your allocation?
Replies: 90
Views: 9053

Re: Has the "bond bubble" caused you to change your allocation?

. I would point out, that the goal of your challenge seems to be to maximize return or even 'risk adjusted' return. I try to maximize growth with my stock allocation, not on the bond side. There is risk involved with holding longer duration bonds that some people may not want to take with their saf...
by JoMoney
Tue Aug 01, 2017 1:07 am
Forum: Investing - Theory, News & General
Topic: Has the "bond bubble" caused you to change your allocation?
Replies: 90
Views: 9053

Re: Has the "bond bubble" caused you to change your allocation?

I haven't change my allocation, which is 90%+ in stocks anyway, but with my 'safe' money I have shortened my duration and using more of things that don't rely on an active market to sell them (i.e. Series I Savings Bonds, High Yield FDIC Money Market/Savings, CDs). A few years back when they started...
by JoMoney
Mon Jul 31, 2017 10:27 pm
Forum: Investing - Theory, News & General
Topic: Greenspan: Look Out When Bonds Pop
Replies: 58
Views: 8212

Re: Greenspan: Look Out When Bonds Pop

This is the same guy who wasn't too concerned about the housing bubble as I recall. Not just 'not concerned' about it, many cast blame on him for it. He later did concede that he found a " ...Flaw in the model that I perceived is the critical functioning structure that defines how the world works, ...
by JoMoney
Mon Jul 31, 2017 10:06 pm
Forum: Investing - Theory, News & General
Topic: Greenspan: Look Out When Bonds Pop
Replies: 58
Views: 8212

Greenspan: Look Out When Bonds Pop

We've had a lot of "Bond Bubble" threads, but I saw this Bloomberg article today with former Fed Chair Alan Greenspan giving his view, that seems to be both bonds and stocks will be hurt with expected rising interest rates, but the view from the article seems to be that bonds are the more 'inflated'...
by JoMoney
Sat Jul 29, 2017 1:57 am
Forum: Investing - Theory, News & General
Topic: Treasury ends myRA program
Replies: 31
Views: 3222

Re: Why demolish Myra?

Here's a great idea for a way for the most vulnerable savers to start out and they're getting rid of it? Why? https://www.nytimes.com/2017/07/28/business/treasury-retirement-myra-obama.html According to the article, Jovita Carranza, the United States treasurer, said in a statement that demand for t...
by JoMoney
Tue Jul 25, 2017 11:29 am
Forum: Investing - Theory, News & General
Topic: S&P 500 Dividend + Buyback Yield
Replies: 13
Views: 917

Re: S&P 500 Dividend + Buyback Yield

...I'm not sure what to make of it, but something noteworthy to consider is that Buybacks+Dividends has been exceeding earnings. Right, it's mostly coming from borrowed money — which seems crazy for building long-term shareholder value. Actually, this “leveraged buyback craze” may hold more risk fo...
by JoMoney
Tue Jul 25, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

tadamsmar wrote:Should you confuse strategy with outcome?

What is the objective of the strategy? How long should a failed or ambiguous outcome be ignored and still believe the strategy is somehow better than another at achieving the objective?
by JoMoney
Tue Jul 25, 2017 10:11 am
Forum: Investing - Theory, News & General
Topic: S&P 500 Dividend + Buyback Yield
Replies: 13
Views: 917

Re: S&P 500 Dividend + Buyback Yield

You can also get the data directly from S&P
http://us.spindices.com/documents/addit ... yback.xlsx

...I'm not sure what to make of it, but something noteworthy to consider is that Buybacks+Dividends has been exceeding earnings.
by JoMoney
Mon Jul 24, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

It may not resonate with you, given your statements and choices made with your investments, you've likely committed to a strategy, but maybe you could find something he actually said, rather than arguing against statements you imagined. I take full offence at that. I have ALWAYS said in my posts th...
by JoMoney
Mon Jul 24, 2017 11:02 am
Forum: Investing - Theory, News & General
Topic: S&P Foreign Sales Decline a Bit for 2016
Replies: 8
Views: 504

Re: S&P Foreign Sales Decline a Bit for 2016

...Not to get into the political aspects of this, but we may see this trend continuing in the years ahead. The impact of the recent worldwide “de-globalization” movement will certainly be felt by U.S. companies. The United States has always been the one country gaining the most benefits from global...
by JoMoney
Mon Jul 24, 2017 10:37 am
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

Mr. Bogle has been right. No. He hasn't. At least, not by the evidence offered in your post, which is not logic that should be promoted by a member of this forum that a good number of readers look to for advice. By your logic, the "right" investment is simply the one that offers the best ...
by JoMoney
Mon Jul 24, 2017 1:06 am
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

Excoriating the OP for presenting facts that don't agree with some unstated "conclusion" that others have drawn on a contentious strategy is ridiculous. Probably best to remind people of what Taylor often says, “When experts disagree, it is often because it does not make a foreseeable diff...
by JoMoney
Sun Jul 23, 2017 11:28 pm
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

100% accurate Mr. Bogle HAS BEEN right. Measuring the "correctness" of investment decisions bases solely on returns should be discouraged. Whatever one's opinion on the merits of international investing, the rationale used by Taylor in the original post to defend US-only investing should ...
by JoMoney
Sun Jul 23, 2017 11:00 pm
Forum: Investing - Theory, News & General
Topic: John Bogle Has Been Right About Investing In International Stocks
Replies: 505
Views: 31841

Re: John Bogle Has Been Right About Investing In International Stocks

Cherry-picking dates and asserting investment conclusions from them is not an honorable Forum practice... It wasn't exactly cherry picked, it was the publication date of Bogle on Mutual Funds, as was stated in the original post. 100% accurate Mr. Bogle HAS BEEN right. Nobody knows what the future w...
by JoMoney
Sat Jul 22, 2017 2:22 am
Forum: Investing - Theory, News & General
Topic: Stocks just got cheaper... per Vanguard [sudden change in Vanguard fund P/Es]
Replies: 29
Views: 4384

Re: Stocks just got cheaper... per Vanguard [sudden change in Vanguard fund P/Es]

...The P/E data is trailing and stale and have lag times. Earnings can be as old as 15 months and still be in the calculations. The data is lumpy, with lots of companies reporting at the same time so lots of updates at the same time... I don't think the data is especially old, but it's definitely &...
by JoMoney
Wed Jul 19, 2017 1:27 pm
Forum: Investing - Theory, News & General
Topic: Stocks just got cheaper... per Vanguard [sudden change in Vanguard fund P/Es]
Replies: 29
Views: 4384

Re: Stocks just got cheaper... per Vanguard [sudden change in Vanguard fund P/Es]

Jiu Jitsu Fighter wrote:... It'd be difficult to explain that away by earnings growth alone...

If you understand that Vanguard's methodology includes for negative earnings, and the distortions that can cause in some cases, it's not difficult at all... but it might have been an error too..