Search found 462 matches

by betablocker
Fri Jan 11, 2019 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Cash Management Account - Investments
Replies: 15
Views: 1101

Re: Fidelity Cash Management Account - Investments

Can someone confirm with the Fidelity Cash Management account that Fidelity will automatically sell investments at the end of the day to cover checks and ATM withdrawals? I've read posts from a search, but many of those were a little older. I wanted to make sure Fidelity hasn't changed anything rec...
by betablocker
Tue Jan 08, 2019 8:20 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Does The Bucket Approach Destroy Wealth?
Replies: 56
Views: 5798

Re: Larry Swedroe: Does The Bucket Approach Destroy Wealth?

This is similar to Betterment’s critique of emergency funds though emergency funds are obviously not as large as a five year bucket. Good points though and again if buckets help people remain logical then they might indeed be worth it.
by betablocker
Tue Jan 08, 2019 10:46 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio’s latest fearmongering round
Replies: 101
Views: 11522

Re: Ray Dalio’s latest fearmongering round

It’s interesting that some of his proposed bad scenarios are specially toxic to BogleHeads principles: Bonds are for safety No need for currency diversification away from dollar It won’t just be a debt problem this time around, he said, but rather a story about unfunded pension and health-care obli...
by betablocker
Tue Jan 08, 2019 10:31 am
Forum: Investing - Theory, News & General
Topic: Damodaran on Macro
Replies: 1
Views: 368

Damodaran on Macro

This is a good summary of how interest rates and equities played out this year. The basic conclusion is that the bond market recalibrated in Q4 but most likely over calibrated. http://aswathdamodaran.blogspot.com/201 ... -from.html
by betablocker
Mon Jan 07, 2019 2:35 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett on value investing
Replies: 22
Views: 1912

Re: Warren Buffett on value investing

The three things you need to know about Corporate Finance: 1) The investing decision (invest in assets that have a return greater than the minimum acceptable hurdle rate), 2) The financing decision (finding the right mix of debt and equity to fund your operations), and 3) the dividend decision (if ...
by betablocker
Sat Jan 05, 2019 1:19 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7718

Re: Larry Swedroe: investing Uncomfortably

Taylor,

Read the threads about how he used active funds as his data which engage in style drift. So his data shows how when growth did well active value managers bought growth stocks.
by betablocker
Sat Jan 05, 2019 11:39 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7718

Re: Larry Swedroe: investing Uncomfortably

By a fundamental factor is the factor cannot be changed over time. A stock is stock & a bond a bond. A "value" stock can become a "growth" stock and visa versa. The same is true for momentum. The returns for the non-fundamental factors are based upon past empirical returns not underlying economics ...
by betablocker
Sat Jan 05, 2019 11:24 am
Forum: Investing - Help with Personal Investments
Topic: BAM Advisor: Advice on alt funds and allocations
Replies: 54
Views: 2624

Re: BAM Advisor: Advice on alt funds and allocations

I view some alts as worth it. The idea is to get additional diversification from equities and bonds particularly if bonds and stocks correlate on the downside as they have done in several periods including the 70s. We would all love to be able to hold a third uncorrelated asset class but the financ...
by betablocker
Fri Jan 04, 2019 10:42 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7718

Re: Larry Swedroe: investing Uncomfortably

IMO the weakness in the factor (value) argument is the factors are based upon past correlations holding true in the future (i.e. folks value vs. growth stocks in a similar way as in the past (so the factor can revert). Fundamental factors (such as beta) are based upon fundamental differences in the...
by betablocker
Fri Jan 04, 2019 10:36 am
Forum: Investing - Help with Personal Investments
Topic: BAM Advisor: Advice on alt funds and allocations
Replies: 54
Views: 2624

Re: BAM Advisor: Advice on alt funds and allocations

My BAM advisor recently recommended adding the following alts to my portfolio. Her reasons for adding these are increased diversification and decreased risk. I know that Larry Swedroe has been promoting these but would like to get reactions here. After these additions, here is my allocation: Equity...
by betablocker
Fri Jan 04, 2019 10:32 am
Forum: Investing - Help with Personal Investments
Topic: BAM Advisor: Advice on alt funds and allocations
Replies: 54
Views: 2624

Re: BAM Advisor: Advice on alt funds and allocations

My BAM advisor recently recommended adding the following alts to my portfolio. Her reasons for adding these are increased diversification and decreased risk. I know that Larry Swedroe has been promoting these but would like to get reactions here. After these additions, here is my allocation: Equity...
by betablocker
Thu Jan 03, 2019 10:20 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7718

Re: Larry Swedroe: investing Uncomfortably

IMO the weakness in the factor (value) argument is the factors are based upon past correlations holding true in the future (i.e. folks value vs. growth stocks in a similar way as in the past (so the factor can revert). Fundamental factors (such as beta) are based upon fundamental differences in the...
by betablocker
Thu Jan 03, 2019 10:17 pm
Forum: Investing - Help with Personal Investments
Topic: BAM Advisor: Advice on alt funds and allocations
Replies: 54
Views: 2624

Re: BAM Advisor: Advice on alt funds and allocations

My BAM advisor recently recommended adding the following alts to my portfolio. Her reasons for adding these are increased diversification and decreased risk. I know that Larry Swedroe has been promoting these but would like to get reactions here. After these additions, here is my allocation: Equity...
by betablocker
Wed Jan 02, 2019 6:12 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: investing Uncomfortably
Replies: 88
Views: 7718

Re: Larry Swedroe: investing Uncomfortably

IMO the weakness in the factor (value) argument is the factors are based upon past correlations holding true in the future (i.e. folks value vs. growth stocks in a similar way as in the past (so the factor can revert). Fundamental factors (such as beta) are based upon fundamental differences in the...
by betablocker
Fri Dec 21, 2018 10:10 am
Forum: Investing - Help with Personal Investments
Topic: Another newbie investor who's feeling the pain and would like advice
Replies: 46
Views: 5153

Re: Another newbie investor who's feeling the pain and would like advice

I'd suggest doing a bit of reading and setting a long term asset allocation that has nothing to do with current market conditions. It hurts to feel like you put money in and then the market goes down but that is no worse than people who put money in, watched it grow, and then experienced a downturn....
by betablocker
Fri Dec 21, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Investing in Stocks & Property
Replies: 14
Views: 841

Re: Investing in Stocks & Property

I don't invest in real estate (beyond REITS) because I don't want to deal with it and in many cases I don't think investors benchmark what they get against a REIT ETF/fund. If you do continue to do it because you have the time and inclination, I'd suggest looking at sites like roofstock and others t...
by betablocker
Fri Dec 21, 2018 9:44 am
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

My challenge: can anyone define gamma clearly without using another greek letter or extra credit SAT vocabulary word?
by betablocker
Fri Dec 21, 2018 9:42 am
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

Here's an equally terrible explanation: https://www.investopedia.com/terms/g/gamma.asp. Can anyone find a good one?
by betablocker
Fri Dec 21, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

My criticism is that he uses jargon to define jargon. I can never really get a clear picture of what he's saying you should do instead of passive investing. Terms like convexity, gamma, moneyness, etc. are obscure words that don't tell regular people anything. So you start with a relatively obscure ...
by betablocker
Thu Dec 20, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

I posted his vega fund performance in other post. https://www.bogleheads.org/forum/viewtopic.php?f=10&t=255985&p=4161676#p4161676 Numbers are CAGR since inception (January 2012) Artemis Vega Fund LP: 2.35% Artemis + Equity Managed Account: 11.54% S&P 500: 12.23% So after 7 years he's managed to und...
by betablocker
Thu Dec 20, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

I think he's a super smart guy and his idea about volatility being the only real asset class is intriguing. He's not a perma bear type. He has a different way of looking at things and I always appreciate that. I'm not personally going to do anything based on what he says but I don't need to demonize...
by betablocker
Wed Dec 19, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Re: Artemis Attack on the Bogleheads

I don’t agree with his sentiments on passive or systematic investing but I do think his warnings are worth listening to. Bonds and stocks have been correlated in the past and we should pay attention to that. The vitriol towards Bogleheads is returned in spades though. We all side with our tribe.
by betablocker
Wed Dec 19, 2018 4:24 pm
Forum: Investing - Theory, News & General
Topic: Artemis Attack on the Bogleheads
Replies: 80
Views: 9171

Artemis Attack on the Bogleheads

Men Faber had Chris Cole from Artemis on his podcast talking about long volatility strategies. Interesting podcast and i’m Going to read his paper on the Alchemy of Risk. Towards the end he attacks passive investing and the Bogleheads specifically. Worth a listen. https://itunes.apple.com/us/podcast...
by betablocker
Wed Dec 19, 2018 11:37 am
Forum: Investing - Help with Personal Investments
Topic: VUBFX (VUSFX admiral) vs. VMMXX [Vanguard Ultra-short bond vs. Prime money market]
Replies: 13
Views: 1355

Re: VUBFX (VUSFX admiral) vs. VMMXX [Vanguard Ultra-short bond vs. Prime money market]

If you have a high tax rate munit money market is good. If you have a lower tax rate and state income tax Treasury MM is good. If neither then prime. Ultra short might get you a bit more yield in the long term but more volatile because of rising rates. Of course that will change someday. SEC yields ...
by betablocker
Sat Dec 08, 2018 11:32 am
Forum: Investing - Theory, News & General
Topic: Benchmark for Tax Equivalent Yield?
Replies: 8
Views: 669

Re: Benchmark for Tax Equivalent Yield?

Total bond also has a slightly higher duration and lower expense ratio.
by betablocker
Sat Dec 08, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: Benchmark for Tax Equivalent Yield?
Replies: 8
Views: 669

Re: Benchmark for Tax Equivalent Yield?

One factor may be the additional diversification of total bond versus just munis.
by betablocker
Wed Nov 28, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

Re: AQR/Liquid Alt Performance

Dividends are just another factor. It may be available cheaper. Great! Use it. Those investing in liquid alts like those run by AQR are following similar evidence although I'd say dividends are really just a proxy for value and quality. A bit of advice: snarky/disparaging remarks or ad hominem attac...
by betablocker
Tue Nov 27, 2018 2:00 pm
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

Re: AQR/Liquid Alt Performance

...there are risks out there that we haven't seen in 30 years like when stocks and bonds go down at the same time... How about risks we've seen in the last few months, when stocks and bonds and liquid alts have all gone down at the same time? How about 2008-2009, well within "30 years?" I only chos...
by betablocker
Tue Nov 27, 2018 9:47 am
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

Re: AQR/Liquid Alt Performance

I agree with Ketawa and Dave. Adding small amounts of alts has achieved small benefits after fees. True we paid more but we also got more. I totally understand people who don't think it is worth it. I've made the calculation that it is for two reasons: first incremental benefits compound over time a...
by betablocker
Mon Nov 26, 2018 12:54 pm
Forum: Investing - Theory, News & General
Topic: Small Value: 15 years of underperforming
Replies: 143
Views: 11685

Re: Small Value: 15 years of underperforming

...I believe the FF factor returns are long/short. The funds at dfa and vanguard are long only... Let's be very clear on this point, because now that long-short funds are getting attention it gets confusing. 1) The Fama-French portfolios , like the ones I cited and St. Lutz cited before me, are lon...
by betablocker
Mon Nov 26, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

Re: AQR/Liquid Alt Performance

I'm looking for higher risk adjusted returns over long periods. This article shows that they deliver exactly that.
by betablocker
Mon Nov 26, 2018 11:40 am
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

Re: AQR/Liquid Alt Performance

A hedge would be negatively correlated with the market and would suck while the market is going up which is 70% of the time. I wouldn't want too much of that over long periods. Market neutral is what it says. It is neutral with the market so there will be times it moves with the market and times it ...
by betablocker
Mon Nov 26, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: AQR/Liquid Alt Performance
Replies: 60
Views: 2915

AQR/Liquid Alt Performance

This is a very good post from Cliff Asness: https://www.aqr.com/Insights/Perspectives/But-What-About-October. Liquid alts were down again in October. Many are disappointed, including me. He makes the point that these liquid alts are market neutral but not a hedge against the market so they correlate...
by betablocker
Mon Nov 26, 2018 9:26 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Market vs Intermediate Bonds
Replies: 3
Views: 881

Re: Total Bond Market vs Intermediate Bonds

This is an interesting case. I would steer way clear of European bonds. Call it market timing but there are times when risks are out of whack. If the Euro falls apart all the bonds from less credit worthy members will be effectively reissued in their home currencies and become worth 40%+ less. Even ...
by betablocker
Sun Nov 25, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: Small Value: 15 years of underperforming
Replies: 143
Views: 11685

Re: Small Value: 15 years of underperforming

Okay, so here is a comparison of Vanguard Small Growth and Value with DFA Small Value thrown in from 6/98 through 9/18: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1998&firstMonth=6&endYear=2018&lastMonth=9&endDate=11%2F22%2F2018&initialAmount=10000&annualOpera...
by betablocker
Thu Nov 22, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: Does a "Larry" portfolio work in the current interest rate environment?
Replies: 23
Views: 2080

Re: Does a "Larry" portfolio work in the current interest rate environment?

Hi all, I find myself restructuring my portfolio in a pretty sharp downturn and am about 60% in cash and the rest in integrated factor funds (where I can). I'm relying on "Black Swans"/AQR types of data, but the thing that I wonder is that I'm not sure I've seen that such a 60% fixed income portfol...
by betablocker
Mon Nov 19, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Munis Increasingly Risky
Replies: 94
Views: 9196

Re: Larry Swedroe: Munis Increasingly Risky

Good question. My first read was that he wouldn't recommend buying GO bonds of a municipality that is highly rated but in a low rated state: so if Evanston is AAA, he still wouldn't buy their GO bonds because Illinois is junk. My assumption is the other issuers are essential revenue bond issuers but...
by betablocker
Mon Nov 19, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: DFA Dimensional Fund Advisors - compared
Replies: 11
Views: 1125

Re: DFA Dimensional Fund Advisors - compared

There are a couple of advisors out there who will give you DFA access for $1000/year. For many portfolios that is hardly 50-100 basis points. I'd point out the obvious about the gap since 2008-it's been a terrible time for value which is their specialty. Vanguard has to accommodate huge amounts of c...
by betablocker
Sun Nov 18, 2018 4:51 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1608
Views: 223565

Re: QSPIX - thoughts on interesting fund

Wouldn’t that describe every firm in the industry?
by betablocker
Sat Nov 17, 2018 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Zero Financial
Replies: 5
Views: 938

Re: Zero Financial

As I understand it it is a credit transaction so would have the same protection. They also give you 1.75% on your deposits so it really replaces savings, checking and credit card rewards.
by betablocker
Sat Nov 17, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Zero Financial
Replies: 5
Views: 938

Zero Financial

This is an interesting new product that Bogleheads should keep and eye on:https://www.nytimes.com/2018/11/16/your-money/zero-financial-review.html. It is a bank account with a credit card but they operate it like a debit card so if you over spend your cash it would reject a credit transaction. If yo...
by betablocker
Sat Nov 17, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2984

Re: AQR fund family's performance relative to its benchmarks

They've (AQR) been accused of being asset gatherers. Funny from a board named after the guy who founded a firm with $5 trillion in....assets! https://about.vanguard.com/what-sets-vanguard-apart/why-ownership-matters/ You find out the importance of ownership when you follow the money. Typical invest...
by betablocker
Sat Nov 17, 2018 12:46 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1608
Views: 223565

Re: QSPIX - thoughts on interesting fund

I wouldn’t use qspix in taxable. It trades tax inefficient categories like commodities, bonds, currencies, etc. it does have equities so it would have higher correlation to the market than a bond fund. The key is diversification. I don’t think judging that benefit since 2014 makes sense. If we get b...
by betablocker
Sat Nov 17, 2018 10:27 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2984

Re: AQR fund family's performance relative to its benchmarks

They've (AQR) been accused of being asset gatherers. Funny from a board named after the guy who founded a firm with $5 trillion in....assets! https://about.vanguard.com/what-sets-vanguard-apart/why-ownership-matters/ You find out the importance of ownership when you follow the money. Typical invest...
by betablocker
Fri Nov 16, 2018 10:00 am
Forum: Investing - Help with Personal Investments
Topic: VBTLX vs. Vanguard Federal Money Market Fund
Replies: 13
Views: 1679

Re: VBTLX vs. Vanguard Federal Money Market Fund

I think Friar has a good idea. Essentially you are shortening your exposure by blending in money markets and you could also do short term bond funds. That's probably the best approach: diversify across the yield curve. I personally am using a trend following system where I sell or buy based on momen...
by betablocker
Fri Nov 16, 2018 8:11 am
Forum: Investing - Help with Personal Investments
Topic: Question about Rebalancing Asset Allocation
Replies: 9
Views: 877

Re: Question about Rebalancing Asset Allocation

If you have any taxable investments the other factor to consider is tax loss harvesting. It can provide a deduction against ordinary income and you can roll the losses into future years. If you are only in tax deferred I’d only rebalance with new money unless there was a 2008 50% loss or something l...
by betablocker
Thu Nov 15, 2018 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: How do you re-balance properly?
Replies: 5
Views: 457

Re: How do you re-balance properly?

You can also take advantage of task loss harvesting if you sell. Usually you take losses where it makes sense (overcomes transaction costs) and the rebalance as much using new money.
by betablocker
Wed Nov 14, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1608
Views: 223565

Re: QSPIX - thoughts on interesting fund

It’s been said multiple times on the thread. I’d expect it to do well when the factors it tracks do well and that those factors would be mostly uncorrelated to the market.
by betablocker
Wed Nov 14, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1608
Views: 223565

Re: QSPIX - thoughts on interesting fund

This debate is getting old. If you don't believe in factor investing you don't believe in it. What else is there to say? I like to learn about new strategies, products, how people are using funds, and alternate viewpoints. What I see over and over: homespun wisdom, emotional appeals, cherry picked a...
by betablocker
Tue Nov 13, 2018 10:42 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 36
Views: 2984

Re: AQR fund family's performance relative to its benchmarks

For laughs, I did the same analysis on Vanguard's stock funds, using those described by Vanguard as either "US stocks" or "international stocks," "active management," and "investor shares." For the time period, I used fund inception if Vanguard shows a benchmark value from fund inception; otherwise...