Search found 898 matches

by pascalwager
Mon Oct 02, 2017 12:06 am
Forum: Investing - Theory, News & General
Topic: Alternative to Google Finance? [Portfolios feature deprecated]
Replies: 52
Views: 7592

Re: Alternative to Google Finance?

Yahoo Finance [...] Just list the tickers separated by commas in the URL https://finance.yahoo.com/quotes/vti,vxus,bnd Thank you, Ice-9, for this info! Just in time too: my Google tickers all expired again, like they do every month as I don't like to be signed in all the time; and instead, I just n...
by pascalwager
Sun Oct 01, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: Investing Books Debunked
Replies: 24
Views: 3980

Re: Investing Books Debunked

I've retired all of my books. Too much about making bets, acknowledged and unacknowledged. If Vanguard produced the world bond/stock index fund (WBS) with differing bond/stock ratios for various investor ages, etc., then you'd only need a book if you also had taxable accounts as the WBS wouldn't be ...
by pascalwager
Sun Oct 01, 2017 8:58 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?
Replies: 3
Views: 356

Re: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?

To me the answer to the your question depends on what you want. If you want the simplest way to have Sharpe's world market portfolio, then the four funds (or three funds, replacing the two stock funds with total world to have one fewer fund) is the way to go. If you want a reasonable approximation ...
by pascalwager
Sun Oct 01, 2017 8:47 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?
Replies: 3
Views: 356

Re: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?

This appears to be active investing using a proprietary algorithm and only the top ten of the 28 component ETFs are identified. And the top ten even include a momentum and a value ETF. It may be a global portfolio, but surely doesn't represent the simple cap-weighted world market. And who would want...
by pascalwager
Sat Sep 30, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

aj76er wrote:
Sat Sep 30, 2017 4:38 pm
Just an FYI, I've started a wiki entry for Sharpe's WBS portfolio here: https://www.bogleheads.org/wiki/World_B ... _Portfolio

Feel free to make additions, updates, and/or corrections!

I've probably added all I care to do for the time being :)
I just now looked at it. Great job!
by pascalwager
Fri Sep 29, 2017 2:58 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

Sharpe mentions that the WBS portfolio is designed for a world without differential taxation, and modifications might be appropriate based on the affects of taxation on asset allocation and location. Allocation: -high-yield versus low-yield stocks -bonds versus stocks ratio Location: -hold municipal...
by pascalwager
Thu Sep 28, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Immigrant retiring in the US [Brazil]
Replies: 14
Views: 986

Re: Immigrant retiring in the US [Brazil]

For a taxable investor, W. Bernstein recommends for bonds: 1/3 Treasuries, 1/3 CDs, and 1/3 munis.

For stocks, you could use the same two US and non-US funds in the LS series, or the Vanguard total world stock index fund.
by pascalwager
Wed Sep 27, 2017 1:11 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

Sharpe doesn't believe in factor premiums, but does seem to approve of one tilt. He calls it the yield tilt . It's based on differential taxation and uses a high-yield index fund in tax-sheltered accounts and a high capital gains index fund in a taxable account. This would be used to tilt away from ...
by pascalwager
Sat Sep 23, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help?! My 70 year old father is 100% invested in equities
Replies: 79
Views: 7383

Re: Help?! My 70 year old father is 100% invested in equities

Any investor needs to consider whether he has the ability, willingness, and need to take risk. Larry Swedroe covers these criteria in his books and articles.

Does your father need to take the risk of 100% stocks? That might be the main question here.
by pascalwager
Sat Sep 23, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help?! My 70 year old father is 100% invested in equities
Replies: 79
Views: 7383

Re: Help?! My 70 year old father is 100% invested in equities

Wow - thanks for all the thoughts. Livesoft - was your post a joke? If so, it rang close to home as I recently revamped my portfolio and adopted a 3-fund approach that is 80% stocks and 20% bonds. Since all this money (low-mid six figures) is in retirement accounts I won't access for 25+ years, I c...
by pascalwager
Sat Sep 23, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 95
Views: 8718

Re: VG wants everyone to transfer to a brokerage account?

The conversion buttons are now removed from my account screens after first showing up a few months ago. From what I understand from Vanguard statements, they're not trying to convert everybody, but do want to convert most accounts. They seem to expect to maintain two platforms--the mutual fund platf...
by pascalwager
Fri Sep 22, 2017 10:03 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 95
Views: 8718

Re: VG wants everyone to transfer to a brokerage account?

I haven't upgraded and won't until forced. *We only use mutual funds *Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage *Have dividends from one fund directed to another fund, which isn't possible in brokerage Upgrading to a brokerage would derai...
by pascalwager
Thu Sep 21, 2017 3:07 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 4776

Re: What is the main purpose of rebalancing?

Sharpe has already analyzed the two common dynamic strategies for asset allocation: buy-and-hold and constant-mix (contrarian rebalancing) in his paper Dynamic Strategies for Asset Allocation (1995). https://web.stanford.edu/class/msande348/papers/PeroldSharpe.pdf However, more recently he has recom...
by pascalwager
Wed Sep 20, 2017 10:30 pm
Forum: Investing - Theory, News & General
Topic: AA if you were just starting out again
Replies: 49
Views: 3723

Re: AA if you were just starting out again

I would use Sharpe's world market portfolio, but without the bonds.
by pascalwager
Wed Sep 20, 2017 7:14 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 4776

Re: What is the main purpose of rebalancing?

The main purpose of rebalancing, according to Sharpe, is to maintain the same portfolio risk with respect to the market portfolio. Here's an example using Sharpe's Formula 15. If you want 70/30* stocks/bonds whenever the market portfolio is 60/40*, then if the market rises to 69/31 at quarter's end,...
by pascalwager
Wed Sep 20, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 4776

Re: What is the main purpose of rebalancing?

You can use Sharpe's AAA Formula 15 to initiate and "rebalance" with respect to his world bond/stock market portfolio. (Since, as a retiree, I want to own the market portfolio itself, I don't need to use Formula 15 to rebalance.) At most, the rebalancing (buy/sell) would be done quarterly, and may n...
by pascalwager
Thu Sep 14, 2017 10:35 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your fund is declaring a quarterly dividend this month."
Replies: 17
Views: 3429

Re: "Find out if your fund is declaring a quarterly dividend this month."

The DFA bond funds pay dividends quarterly, just like the DFA stock funds. So, conveniently, I only need to update the DFA bond fund share quantities quarterly on my spreadsheet, compared to monthly for the Vanguard bond funds.
by pascalwager
Tue Sep 12, 2017 4:31 pm
Forum: Investing - Theory, News & General
Topic: Perhaps you shouldn't rebalance your international stock allocation
Replies: 21
Views: 4352

Re: Perhaps you shouldn't rebalance your international stock allocation

The global index doesn't matter--in fact it's completely irrelevant, if you're using several individual index funds. If you believe that the individual cap-weighted funds cover the entire global stock market then you would need to use the individual index market values to determine the initial propo...
by pascalwager
Mon Sep 11, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Yes Virginia, you can lose money in bonds
Replies: 36
Views: 4869

Re: Yes Virginia, you can lose money in bonds

I think it's reasonable to assume that, at some point in the future Central Banks will let inflation get away from them. Lessons are seldom learned permanently. Which is why many Bogleheads (myself included) have at least some allocation to TIPS in their bond portfolios. :wink: Yep. Just for learni...
by pascalwager
Sat Sep 09, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3178

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now...
by pascalwager
Sat Sep 09, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard Global Bond Index Portfolio (annuity)
Replies: 11
Views: 1571

Re: Vanguard Global Bond Index Portfolio (annuity)

Interesting. 70/30 is the US/EXUS bond split found in the LifeStrategy and TR funds. LifeStrategy Income would probably be a better choice here? A true global bond fund (with market cap weights, as per above post) would make it trivial to hold William Sharpe's World Bond/Stock portfolio. You would ...
by pascalwager
Sat Sep 09, 2017 11:12 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3178

Re: "The Market" Portfolio

I want to thank all of you for your thoughtful responses. I am still struggling with what I want my asset allocation to look like, but you guys have given me lots of food for thought. I know that many of my questions don't have simple answers. And many are probably dumb questions. Asset allocation ...
by pascalwager
Fri Sep 08, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3178

Re: "The Market" Portfolio

I want to thank all of you for your thoughtful responses. I am still struggling with what I want my asset allocation to look like, but you guys have given me lots of food for thought. I know that many of my questions don't have simple answers. And many are probably dumb questions. Asset allocation ...
by pascalwager
Fri Sep 08, 2017 11:48 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3178

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now...
by pascalwager
Fri Sep 08, 2017 1:49 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3178

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now,...
by pascalwager
Thu Sep 07, 2017 7:01 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?
Replies: 19
Views: 2032

Re: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?

Your risk portfolio would have 43% bonds right now if you hold the Sharpe world market portfolio. But your riskless portfolio (TIPS) should cover any uncovered liabilities as $ per year for remaining years of life.
by pascalwager
Tue Sep 05, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Do you use lifestrategy/ asset allocation funds?
Replies: 77
Views: 13034

Re: Do you use lifestrategy/ asset allocation funds?

I don't use any of the four LS series fund-of-funds, but I do use the same four Vanguard internal funds to run my cap-weighted William F. Sharpe world bond/stock portfolio.
by pascalwager
Thu Aug 31, 2017 10:19 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 360
Views: 33226

Re: Why go with an 80% stock / 20% bond portfolio?

I was 0/100 (100% T-Bills) until age 53. Then I lump-summed all of it into 90/10. Now I have 50/38/12 at age 75.

It worked out OK, but I would start off at 100% total world stock if I had a second chance and maybe start adding world bonds when nearing retirement.
by pascalwager
Fri Aug 25, 2017 7:38 pm
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 1886

Re: Tilt away from one's home country slightly

Since the world market is currently 52/48, US/non-US, then tilting away from the US could mean, for example, going to 48/52, or even 45/55. What you're really proposing is tilting away from the world market slightly less massively/dramatically.
by pascalwager
Fri Aug 25, 2017 3:34 pm
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 1886

Re: Tilt away from one's home country slightly

Do you want to invest--or make bets? If you want to invest, then use world market capitalization proportions (currently 52/48, US/non-US). If you want to make bets, then overweight either US or non-US, and you can probably discover reasons to do either. But how do you quantify them?
by pascalwager
Fri Aug 25, 2017 12:30 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 32
Views: 3493

Re: Total World (VT, VTWSX) Tilt? Simplicity...

I think pascalwager provided that link because it ended with this: A better approach may be to split your holdings between just two funds, which will allow you to participate in both US and foreign stocks but do so with higher returns. For example, you can own US stocks through the Vanguard 500 Ind...
by pascalwager
Fri Aug 25, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 32
Views: 3493

Re: Total World (VT, VTWSX) Tilt? Simplicity...

I think pascalwager provided that link because it ended with this: A better approach may be to split your holdings between just two funds, which will allow you to participate in both US and foreign stocks but do so with higher returns. For example, you can own US stocks through the Vanguard 500 Ind...
by pascalwager
Thu Aug 24, 2017 9:14 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 32
Views: 3493

Re: Total World (VT, VTWSX) Tilt? Simplicity...

Doublebass wrote: I'm almost inclined to just drop the tilts and split my equities 50/50 between TSM and Total World. I know most people would just label that 75% Domestic and 25% International, but that's not always the case. If I held 50% TSM and 50% total World then half of my money would go towa...
by pascalwager
Wed Aug 23, 2017 10:52 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 32
Views: 3493

Re: Total World (VT, VTWSX) Tilt? Simplicity...

Doublebass, You might be a candidate for the active Vanguard Global Equity Fund (VHGEX). It's performed better than Vanguard Total World Stock Fund over the last ten years and it would take certain vexing decisions out of your hands. The team of seven professional managers decides when it tilts towa...
by pascalwager
Mon Aug 21, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 44
Views: 4295

Re: Boston Globe: Smart Investors May be Killing Capitalism

Boston Globe's screed against index funds: http://www.bostonglobe.com/business/2017/08/18/smart-investors-may-killing-capitalism/61SGI74x2L9aW5BGYhVjaM/story.html Here’s the basic problem: When investors own little bits of everything, they lose interest in the kind of fierce market competition that...
by pascalwager
Sat Aug 19, 2017 12:18 am
Forum: Investing - Theory, News & General
Topic: Going passive is an active decision
Replies: 32
Views: 2651

Re: Going passive is an active decision

There are some here who say that if you deviate whatsoever from a global cap weighted stock position that you are an active investor. I don't buy that. What I do buy into are the 'cost matters hypothesis' and indexes. William F. Sharpe, a major proponent of passive investing, recognizes the possibl...
by pascalwager
Thu Aug 17, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

Pascalwager, Written by longinvest: I use total-market index funds to invest into four selected types of investment-grade securities: domestic stocks, international stocks, domestic nominal bonds, and domestic inflation-indexed bonds. I do not include international bonds (currency-hedged or not) in...
by pascalwager
Thu Aug 17, 2017 12:53 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

Written by longinvest: I use total-market index funds to invest into four selected types of investment-grade securities: domestic stocks, international stocks, domestic nominal bonds, and domestic inflation-indexed bonds. I do not include international bonds (currency-hedged or not) into my portfoli...
by pascalwager
Tue Aug 15, 2017 11:46 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 15897

Re: Bill Sharpe's preferred portfolio

Note: This is a copy of a post I made in another thread: "Bonds: Ballast for your portfolio" . I think that it is relevant to the topic of this thread. ------------ I recently found this passage in Sharpe's RISMAT-7 to be pretty compelling: To see this, consider a simple policy calling for a mix of...
by pascalwager
Tue Aug 15, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Spreadsheet for Tracking the Global Market Portfolio
Replies: 14
Views: 1262

Re: Spreadsheet for Tracking the Global Market Portfolio

. . . This portfolio idea, with the more complete international fund, looks a lot like the Vanguard Target funds and LifeStrategy funds. Closest to it is probably Vanguard LifeStrategy Moderate Growth Fund (VSMGX). Yes, but the Target and LS Funds allocations are not market-weighted. You probably a...
by pascalwager
Tue Aug 15, 2017 11:10 pm
Forum: Investing - Theory, News & General
Topic: Spreadsheet for Tracking the Global Market Portfolio
Replies: 14
Views: 1262

Re: Spreadsheet for Tracking the Global Market Portfolio

The latest RISMAT update is May 2017, but Sharpe didn't update the Vanguard int'l stock fund to the newer global all-cap index version, which surprised me. Personally, I purchased the newer all-cap fund with no hesitation.
by pascalwager
Mon Aug 14, 2017 11:52 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

I don't know what you mean by "part of the portfolio" unless you're referring to corporate bonds, which you seemed to prefer to omit. Here's my original post: Kevin DiCiurcio: From a portfolio construction standpoint, choosing corporates or choosing non-market-cap-weighted exposure, you generally d...
by pascalwager
Sun Aug 13, 2017 11:59 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

I don't know why you should be annoyed, if you're really a passive investor. The market portfolio should be a first principle for passive investors, but maybe best suited for retirees. I'm not a passive investor, but do consider passive to be the default starting point. The argument I quoted seems ...
by pascalwager
Sat Aug 12, 2017 11:32 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

If you're a passive investor, you invest in the "total" market, which happens to include corporate bonds. If you're an active investor, then you can add and omit asset classes. It seems to me that we must actively choose which asset classes to invest in. Even Sharpe has omitted or underweighted com...
by pascalwager
Fri Aug 11, 2017 10:21 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

Kevin DiCiurcio: From a portfolio construction standpoint, choosing corporates or choosing non-market-cap-weighted exposure, you generally do it for two reasons. First would be for diversification. When you add corporates to a Treasury bond portfolio, it actually results in a portfolio that exhibit...
by pascalwager
Fri Aug 11, 2017 10:14 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

Very good bond overview by DiCiurcio--best I've seen. Should be watched/read by all novice investors and maybe those not-so-novice.
by pascalwager
Fri Aug 11, 2017 10:07 pm
Forum: Investing - Theory, News & General
Topic: "Bonds: Ballast for your portfolio"
Replies: 45
Views: 5940

Re: "Bonds: Ballast for your portfolio"

No mention of TIPS which is disappointing. Also, this discussion deviates from the notion of "take your risk on the equity side." Risk management via different flavor of bonds is not something recommended for personal investors much around here. Sometimes, with Vanguard, one wonders who the audienc...
by pascalwager
Thu Aug 10, 2017 6:57 pm
Forum: Investing - Theory, News & General
Topic: What Percentage CASH are you?
Replies: 90
Views: 6660

Re: What Percentage CASH are you?

First of all, I don't care about cash as dry powder. I consider that to be active "investing" (betting) and market timing. In fact, I've stopped reading/recommending/quoting most of the "BH authors" as they all advise forms of active investing. They apparently don't really think that passive investi...
by pascalwager
Mon Aug 07, 2017 2:35 am
Forum: Investing - Theory, News & General
Topic: Should TBM Be Your Only Bond Fund?
Replies: 33
Views: 5124

Re: Should TBM Be Your Only Bond Fund?

TBM is the broad-based US bond market (roughly). HY funds are imprudent bets and not really investing.
by pascalwager
Sun Aug 06, 2017 5:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Non-US AA
Replies: 6
Views: 694

Re: Vanguard Non-US AA

There is an open question relative to investor identity. The world market reflects the views of the average global investor. So, I asked Bill Sharpe about this and he pointed out that a US retiree would get a correcting tilt from shorter-term US treasuries using the companion riskless portfolio whi...