Search found 416 matches

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: 370

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: 1497
Views: 212251

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: 1497
Views: 212251

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: 30
Views: 2180

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...
by betablocker
Tue Nov 13, 2018 10:39 pm
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 30
Views: 2180

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

I'm curious about the hostility that AQR inspires on the board. Bogleheads can be an emotional bunch! AQR has performed well over the years delivering exactly what they promised. Yes there has been a long term underperformance in value and recently the other factors have also underperformed. It hap...
by betablocker
Tue Nov 13, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Best Fidelity Money Market Account to Hold Cash?
Replies: 21
Views: 3364

Re: Best Fidelity Money Market Account to Hold Cash?

If you have a high tax rate, I'd use their muni money market or I'm looking at Fidelity® Conservative Income Municipal Bond Fund. It's a bit more risk than a MM but pretty low duration with a tax equivalent yield of 3%. If you don't need the cash on any given day you might also look at 3, 6, or 12 m...
by betablocker
Tue Nov 13, 2018 9:43 am
Forum: Investing - Theory, News & General
Topic: AQR fund family's performance relative to its benchmarks
Replies: 30
Views: 2180

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

I'm curious about the hostility that AQR inspires on the board. Bogleheads can be an emotional bunch! AQR has performed well over the years delivering exactly what they promised. Yes there has been a long term underperformance in value and recently the other factors have also underperformed. It happ...
by betablocker
Mon Nov 12, 2018 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: [Financial] Habits of the Rich
Replies: 140
Views: 16923

Re: [Financial] Habits of the Rich

This certainly inspired a lot of responses. I have a slightly different take. Start a business. Don’t waste your time with VC stuff unless you have the next Uber. You’ll have to sacrifice and work hard at the beginning but if you hire smart people and service providers, you can reap a lot of reward....
by betablocker
Mon Nov 12, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 168
Views: 12092

Re: A reminder: Stay away from AQR

This is probability. If the expected odds that you will win a game at a casino are say 55%(obviously no such game exists) then you don’t win on each hand or roll of the dice. You win over time. Momentum has very short periods of underperformance for a factor. There’s a great chart in Larry’s factor...
by betablocker
Fri Nov 09, 2018 8:29 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 168
Views: 12092

Re: A reminder: Stay away from AQR

Why should trend following or momentum be a long-term strategy? If a bet on a trend fails, the holding no longer has positive momentum, or it would not have failed, so the strategy moves on to another momentum bet. This means the strategy is unlikely to harvest any mean reversion from failed moment...
by betablocker
Fri Nov 09, 2018 8:25 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 168
Views: 12092

Re: A reminder: Stay away from AQR

I read an AQR paper called something like “Value momentum everywhere” and the gyst I remember is mom can help offset the value droughts. Is AQR not using MOM, their MOM is not performing or MOM in general is suffering along with value these days? Mom had been doing well and other factors as well in...
by betablocker
Thu Nov 08, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 168
Views: 12092

Re: A reminder: Stay away from AQR

it’s not like I’m some fan boy but I read Asness’s essay referenced in the “article” from Bloomberg. I thought it was admirable, transparent, and more than any other manager ever does during a bad period. A good example of the spell. For some reason investors are willing to pay 2% fee on AUM for re...
by betablocker
Thu Nov 08, 2018 6:14 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 168
Views: 12092

Re: A reminder: Stay away from AQR

This strikes me as an unfair attack. I have a bit of money in one of their funds so it’s not like I’m some fan boy but I read Asness’s essay referenced in the “article” from Bloomberg. I thought it was admirable, transparent, and more than any other manager ever does during a bad period. Of course f...
by betablocker
Wed Nov 07, 2018 8:05 am
Forum: Investing - Help with Personal Investments
Topic: Prime Money Market vs. Bonds/CDs
Replies: 6
Views: 1017

Re: Prime Money Market vs. Bonds/CDs

It’s true that if you can go to a money market and then transfer back to bonds when the fed stops raising interest rates you’ll net more but the problem is knowing when the fed stops raising and additionally how the market will react. My guess is it isn’t as bad as market timing with stocks where a ...
by betablocker
Sat Nov 03, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Is Small Value Still A Winner?
Replies: 96
Views: 6919

Re: Is Small Value Still A Winner?

I’d also say that all investors are factor investors. Maybe you only invest in the market and duration factors.
by betablocker
Sat Nov 03, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Is Small Value Still A Winner?
Replies: 96
Views: 6919

Re: Is Small Value Still A Winner?

Seems like we need to distinguish some terms. Total stock market is more diversified in some ways or deworseified. The goal of factor investors isn’t diversification alone. It’s diversification to factors with positive expected returns. As this chart shows (https://www.factorresearch.com/research-fa...
by betablocker
Thu Nov 01, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Are bonds the Maginot Line of Modern Investing?
Replies: 43
Views: 4116

Re: Are bonds the Maginot Line of Modern Investing?

Thanks for the clarification on the Maginot Line history. It makes the point exactly. The Ardennes are bonds. I'm not sure TIPS will really offset inflation. It's relatively untested and there is some evidence they might not work that well. I'm not saying we should all for 50% into gold or start be...
by betablocker
Thu Nov 01, 2018 1:39 pm
Forum: Investing - Theory, News & General
Topic: Core-4 Investing is LIVE! It really is this time!
Replies: 131
Views: 9592

Re: Rick Ferri's new Core-4 (6 versions) Website

You would use REITs for diversification. Larry Swedroe has written over the last few years that REITs have essentially correlated to the stock market particularly during equity down turns when you need the diversification the most. I think it's essentially a coin flip as to whether you include them....
by betablocker
Fri Oct 19, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Are bonds the Maginot Line of Modern Investing?
Replies: 43
Views: 4116

Re: Are bonds the Maginot Line of Modern Investing?

One issue I have with TIPS is that it is linked to federal measures of inflation and I don't think they accurate reflect increases in costs in HCOL areas particularly with college education, health care, and real estate.
by betablocker
Fri Oct 19, 2018 8:33 am
Forum: Investing - Theory, News & General
Topic: Are bonds the Maginot Line of Modern Investing?
Replies: 43
Views: 4116

Re: Are bonds the Maginot Line of Modern Investing?

Thanks for the clarification on the Maginot Line history. It makes the point exactly. The Ardennes are bonds. I'm not sure TIPS will really offset inflation. It's relatively untested and there is some evidence they might not work that well. I'm not saying we should all for 50% into gold or start bei...
by betablocker
Fri Oct 19, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: Are bonds the Maginot Line of Modern Investing?
Replies: 43
Views: 4116

Are bonds the Maginot Line of Modern Investing?

Good read from Matt Topley about some comments by Jeremy Schwartz https://matttopley.com/topleys-top-ten-october-19-2018/. It's a truism that generals fight the last war and that investors prepare for the last down turn. I think we underestimate the chance of a 1970s type scenario where both bonds a...
by betablocker
Thu Oct 18, 2018 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?
Replies: 96
Views: 8971

Re: Paying off the mortgage early - Isn't this the opposite of "putting more money into your house"?

I don't agree with paying off a mortgage in most circumstances but if you don't itemize because of the new tax legislation and what if you had a new rate in the 5s? Expected returns from a stock bond mix are about that so I would consider using a windfall to pay off a mortgage in that circumstance i...
by betablocker
Thu Oct 18, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Malkiel no longer endorses blind-folded monkeys, likes smart beta
Replies: 31
Views: 3457

Re: Malkiel no longer endorses blind-folded monkeys, likes smart beta

I don’t think Malkiel or anyone on this board who invests in strategies that would fall under the imprecise label of smart beta think that these strategies don’t involve taking more risk. If you use standard deviation many factor strategies are higher. The point that is left out is that mixing the s...
by betablocker
Fri Oct 05, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: seeking advice: bond funds vs CDs/Treasuries
Replies: 3
Views: 735

Re: seeking advice: bond funds vs CDs/Treasuries

I think CDs are better because they usually have a better yield than equivalent duration treasuries particularly in tax advantaged account. You can build a ladder by putting 4/5ths in a 1 year cd and buying a 5 year with the other 1/5. Do that for 5 years. That minimizes interest risk. They don’t ge...
by betablocker
Sat Sep 29, 2018 8:52 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

Right so you look at the spread and make a decision at the time. Agreed they don’t provide flight to quality benefits but if the spread is large enough it still makes more sense to hold CDs. You’re only going to have brief and infrequent periods of quality flight but the spread will always make a d...
by betablocker
Sat Sep 29, 2018 8:52 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

Right so you look at the spread and make a decision at the time. Agreed they don’t provide flight to quality benefits but if the spread is large enough it still makes more sense to hold CDs. You’re only going to have brief and infrequent periods of quality flight but the spread will always make a d...
by betablocker
Sat Sep 29, 2018 3:10 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

Right so you look at the spread and make a decision at the time. Agreed they don’t provide flight to quality benefits but if the spread is large enough it still makes more sense to hold CDs. You’re only going to have brief and infrequent periods of quality flight but the spread will always make a d...
by betablocker
Sat Sep 29, 2018 7:46 am
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

Right so you look at the spread and make a decision at the time. Agreed they don’t provide flight to quality benefits but if the spread is large enough it still makes more sense to hold CDs. You’re only going to have brief and infrequent periods of quality flight but the spread will always make a di...
by betablocker
Fri Sep 28, 2018 10:17 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

I’m curious about why that is. My sense is they are largely interchangeable given some exceptions: liquidity and flight to quality.
by betablocker
Fri Sep 28, 2018 8:05 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.

Those who have been on the board for a while know that there are plenty of examples where trend following works and that cross sectional momentum (as opposed to trend) has been called the premier anomaly.
by betablocker
Fri Sep 28, 2018 7:57 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

Agreed you don’t want 100% cds and you should also ladder them so some are always coming to maturity.
by betablocker
Fri Sep 28, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

moving averages were made REALLY popular by Mebane Farber on his "Ivy League" book. Based on that fame he started his own mutual fund. Think it was ?GTAA or something like that. How did it do? Who knows as it closed down and is no longer in existence. So a real life IN VITRO experiment showed it is...
by betablocker
Fri Sep 28, 2018 2:34 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

In fact a simple Google search shows that he [Meb Faber]was a sub advisor on that fund and left to start a similar ETF which he still runs: https://www.etf.com/sections/daily-etf-watch/22291-daily-etf-watch-faber-drops-gtaa-role.html https://i.postimg.cc/SKRcYZsH/GMOM.png Unfair comparison of cours...
by betablocker
Fri Sep 28, 2018 2:31 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

...moving averages were made REALLY popular by Mebane [Faber] [in] his "Ivy [Portfolio]" book. Based on that fame he started his own mutual fund. Think it was ?GTAA or something like that. It was indeed GTAA. ...How did it do? Who knows as it closed down and is no longer in existence. So a real lif...
by betablocker
Fri Sep 28, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market
Replies: 111
Views: 6680

Re: Total Treasuries Market vs Intermediate Treasuries vs Total Bond Market

The evolution of the bond portion of my tax-exempt portfolio has evolved along these lines over the years: Total Bond Market >>> Intermediate Treasuries Index >>> (now) Total Treasuries Market The switch from TBM -> Intermediate Treasuries was driven by the desire to hold the "risk free" asset (Tre...
by betablocker
Thu Sep 27, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

In fact a simple Google search shows that he was a sub advisor on that fund and left to start a similar ETF which he still runs: https://www.etf.com/sections/daily-etf- ... -role.html
by betablocker
Thu Sep 27, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

moving averages were made REALLY popular by Mebane Farber on his "Ivy League" book. Based on that fame he started his own mutual fund. Think it was ?GTAA or something like that. How did it do? Who knows as it closed down and is no longer in existence. So a real life IN VITRO experiment showed it is...
by betablocker
Thu Sep 27, 2018 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Bond fund yields: Schwab vs Vanguard
Replies: 11
Views: 1186

Re: Bond fund yields: Schwab vs Vanguard

Yields are minus fees and that usually makes up the entire difference. While Schwab, Fidelity, etc are introducing some low cost options they tend to get you on money markets (if they put you in one) and bond funds. Crazy because those are where the fees make the most difference but it's probably be...
by betablocker
Thu Sep 27, 2018 8:59 am
Forum: Investing - Theory, News & General
Topic: Why don't I read about this strategy more? It seems reasonable and pretty straight forward.
Replies: 75
Views: 9892

Re: Why don't I read about this strategy more? It seems to beat everything else

My guess is that using the 3 fund portfolio isn't the best option for momentum. AQR does it with individual stocks, currencies, bonds, commodities, etc. You look for the things that have the best momentum overall (cross sectional) and those with the best momentum against themselves (time series/tren...
by betablocker
Mon Sep 17, 2018 9:22 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 33
Views: 3046

Re: Critique my High-Risk Factor Portfolio

Why not just hold something like Alpha Architect’s VMOT which covers the factors you want in a concentrated fashion with a trend following overlay? Then diversify with some bonds and real assets. I just checked out the Alpha Architect ETF website. I wasn't aware of these before. Is there any discus...
by betablocker
Mon Sep 17, 2018 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Critique my High-Risk Factor Portfolio
Replies: 33
Views: 3046

Re: Critique my High-Risk Factor Portfolio

Hi all, Long time lurker, first time poster here. I recently came in to a modest inheritance and became interested in taking investing more seriously. I had previously been contributing to my 403b, but without much thought. I read John Bogle's Common Sense on Mutual Funds , William Berstein's 4 Pil...
by betablocker
Thu Sep 13, 2018 8:45 am
Forum: Investing - Help with Personal Investments
Topic: Any issues keeping <$1MIL in VMFXX (Money Market Fund)?
Replies: 21
Views: 3082

Re: Any issues keeping <$1MIL in VMFXX (Money Market Fund)?

No issues. If you have a high tax rate look at a muni money market if not look at the treasury as other posters have recommended or prime. All good choices. Money markets are not insured true but the closest they ever came to losing money was during the GFC and the Fed is never going to let that hap...
by betablocker
Thu Sep 13, 2018 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity, Schwab, or Vanguard
Replies: 61
Views: 4289

Re: Fidelity, Schwab, or Vanguard

I've found that the cheap options at Schwab and Fidelity are more limited. Maybe S&P 500 is no fee but then their muni money market is 3-4x times the fee of Vanguard's option. That's where these guys make their money. They are also defaulting your sweep account to a bank account with almost no inter...
by betablocker
Wed Sep 12, 2018 4:12 pm
Forum: Personal Finance (Not Investing)
Topic: Mr.No - another should I pay off my mortgage, post
Replies: 31
Views: 2698

Re: Mr.No - another should I pay off my mortgage, post

Cheap, manageable and tax deductible debt is almost an asset. If you don’t believe me follow Buffett. His whole empire is based on insurance float. Dont send your money into the ether for a 2% return (factoring in the tax deduction). With that bonus you aren’t in 33% anymore. Stay liquid. I read a ...
by betablocker
Tue Sep 11, 2018 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Mr.No - another should I pay off my mortgage, post
Replies: 31
Views: 2698

Re: Mr.No - another should I pay off my mortgage, post

Cheap, manageable and tax deductible debt is almost an asset. If you don’t believe me follow Buffett. His whole empire is based on insurance float. Dont send your money into the ether for a 2% return (factoring in the tax deduction). With that bonus you aren’t in 33% anymore. Stay liquid. I read a g...
by betablocker
Wed Sep 05, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Hold cash in Treasury Bills or in Money Market Fund?
Replies: 36
Views: 4755

Re: Hold cash in Treasury Bills or in Money Market Fund?

I use Vanguard's Muni Money Market or Treasury Money Market in taxable for my "bank" account. That's what I pay bills from and other short term cash needs. Anything I'm not touching would go into a CD, muni, or get invested. Even short term bond funds will go down if you don't hold to maturity. I do...
by betablocker
Mon Sep 03, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: Analysis Paralysis - Mortgage, Emergency Fund, etc.
Replies: 51
Views: 4375

Re: Analysis Paralysis - Mortgage, Emergency Fund, etc.

I agree with Klangfool here. What you need is liquidity and investments that grow. I understand your hesitancy to sell stock but that hesitancy is keeping you from buying more. You should figure out your asset allocation and stick to it. Paying off the mortgage and not selling stocks may feel good b...
by betablocker
Tue Aug 21, 2018 11:00 am
Forum: Investing - Help with Personal Investments
Topic: Small Biz Owner Would Appreciate Feedback on Investments
Replies: 10
Views: 739

Re: Small Biz Owner Would Appreciate Feedback on Investments

Hi there! Newly minted BH here… looking for some guidance from this knowledgeable group. From blog reading and then following up with a variety of books and other online resources I have taken some big steps over the past few months to take control of our investments (i.e. fire my financial planner...
by betablocker
Tue Aug 14, 2018 12:11 pm
Forum: Investing - Help with Personal Investments
Topic: Small business owner, mid 30s, doing great, clueless with investments
Replies: 22
Views: 2167

Re: Small business owner, mid 30s, doing great, clueless with investments

I have never considered stocks/REITs to be coordinated but it makes sense. No, I don't have a line of credit or HELOC. I haven't found it necessary. I'll check out Larry Swedroe info. Thanks. I own a business as well and try to match my asset allocation to the risk of my company. Stocks and REITS a...
by betablocker
Mon Aug 13, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Small business owner, mid 30s, doing great, clueless with investments
Replies: 22
Views: 2167

Re: Small business owner, mid 30s, doing great, clueless with investments

I own a business as well and try to match my asset allocation to the risk of my company. Stocks and REITS are highly coordinated with your business so I would say have a lower equity allocation, avoid REITs, and explore some alternative investments that aren't correlated with the markets. I invest i...