Search found 201 matches

by Dominic
Wed Apr 18, 2018 8:34 pm
Forum: Personal Consumer Issues
Topic: PC laptops
Replies: 94
Views: 4787

Re: PC laptops

This is a terrible analogy in the world of computers. A solid state drive alone would likely give the feeling of a giant performance boost. Laptop batteries that old are usually terrible. I'm not a Mac user, but I have many former hot rod laptops that now collect dust. The Samsung chrome book pro I...
by Dominic
Wed Apr 18, 2018 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: Divesting gun stocks
Replies: 11
Views: 1105

Re: Divesting gun stocks

This is 1/200th of your US stock portfolio. I wouldn't pay extra to play with such a marginal amount of my holdings.

Obviously this is a personal decision, but I don't think that 0.45% is that big of an ethical concern.
by Dominic
Tue Apr 17, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Too much rent?
Replies: 21
Views: 1921

Re: Too much rent?

We plan on being here permanently, but also thought that before our previous move. We could save 4k+ a month if we really stuck to our budget. That would allow us to save up for 1 year and grab the rest from our emergency fund which would bring that down to 12 months reserves Is this a planned temp...
by Dominic
Sat Apr 14, 2018 4:34 pm
Forum: Investing - Theory, News & General
Topic: Is it time to dump high yield savings for prime money market?
Replies: 128
Views: 19256

Re: Is it time to dump high yield savings for prime money market?

In my case I am not sure if 0.16% difference worth the hassle (My savings is earning 1.45% at Ally currently). To make things worse, this 0.16% is taxable so it is only 0.13% ($13 more per year for every $10K also not FDIC) :D Speaking of taxes, Treasury money market funds are probably higher yield...
by Dominic
Tue Apr 10, 2018 7:23 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 6046

Re: Factor Investing - A convincing article

I've flip-flopped on factors a number of times. I understand the concept. Much like it's intuitive that high-yield bonds are riskier than Treasury bonds, it is intuitive that some classes of stocks are riskier than others. Value stocks are treated by the stock market the same way high-yield bonds ar...
by Dominic
Mon Apr 09, 2018 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Job search advice for a soon-to-be engineering grad...
Replies: 41
Views: 1997

Re: Job search advice for a soon-to-be engineering grad...

Not an expert, but these things helped me out: 1) Polish the resume. It needs to be impressive to humans, but also to algorithms that look for buzzwords. Without being too heavy-handed, he should make sure to highlight technologies/processes he's familiar with. As many others have suggested, the uni...
by Dominic
Sun Apr 08, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Single Vanguard LifeStrategy fund for retirement vs 2- or 3-fund approach
Replies: 18
Views: 1463

Re: Single Vanguard LifeStrategy fund for retirement vs 2- or 3-fund approach

Unless you have significant taxable investments, LifeStrategy (or Target Date) funds are perfectly fine. They cost slightly more in terms of expense ratio, but we're talking about 10 basis points or less here, which is really not a lot. If this makes life easier for you, or helps you stay on track, ...
by Dominic
Mon Apr 02, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: Is Lockheed Martin about to become the biggest company in history?
Replies: 66
Views: 6631

Re: Is Lockheed Martin about to become the biggest company in history?

Fusion has a ton of upside, but it's not coming out of Lockheed in the next year. There are many companies putting far, far more resources into fusion than Lockheed is. It is absurdly unlikely that their small R&D team knows something that none of the dedicated fusion companies don't know. Sprinkle ...
by Dominic
Sat Mar 31, 2018 10:50 pm
Forum: Investing - Theory, News & General
Topic: Is backtesting worthless? Are there ANY insights you can get from it?
Replies: 69
Views: 4708

Re: Is backtesting worthless? Are there ANY insights you can get from it?

It's not worthless unless you make it worthless. That is, don't try to find the optimal slice-and-dice portfolio with 25 asset classes by backtesting it, because you're never going to come close to replicating those results. What is okay is to look back and examine how realistic portfolios behaved....
by Dominic
Sat Mar 31, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: Is backtesting worthless? Are there ANY insights you can get from it?
Replies: 69
Views: 4708

Re: Is backtesting worthless? Are there ANY insights you can get from it?

It's not worthless unless you make it worthless. That is, don't try to find the optimal slice-and-dice portfolio with 25 asset classes by backtesting it, because you're never going to come close to replicating those results. What is okay is to look back and examine how realistic portfolios behaved. ...
by Dominic
Sat Mar 31, 2018 6:07 pm
Forum: Investing - Help with Personal Investments
Topic: Which bond index funds to use
Replies: 5
Views: 821

Re: Which bond index funds to use

Regarding bonds, a general consensus is that bonds are for safety. There is still some variation in how Bogleheads construct their bond portfolios, but that idea is still central in most cases. For this reason, a lot of Bogleheads would advise against holding emerging markets bonds. If crisis strike...
by Dominic
Sun Mar 25, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: Seasoned bogleheads repressing the thought of lower expected returns
Replies: 178
Views: 12299

Re: Seasoned bogleheads repressing the thought of lower expected returns

"Hardly positive" real returns are better than negative real returns, which are also a possibility. We invest because there's not really a better alternative. This is important. Don't start throwing money at risky assets to squeeze out extra yield. You're just putting yourself further at risk. I am...
by Dominic
Wed Mar 21, 2018 6:29 pm
Forum: Investing - Theory, News & General
Topic: [Federal Reserve hikes interest rate]
Replies: 34
Views: 4156

Re: Fed raises the fed rate, markets do not look efficient

At the end of the day, the market was fairly confident that the Fed was planning to raise rates at today's meeting, and all the economic data that's been trickling in over the past few months hasn't been enough to change that plan. Thus, most of today's rate hike was priced in over the last few week...
by Dominic
Tue Mar 20, 2018 11:26 am
Forum: Investing - Help with Personal Investments
Topic: If you knew a recession was coming, what would you do?
Replies: 57
Views: 6663

Re: If you knew a recession was coming, what would you do?

Hypothetically, I'd go 100% long-term Treasuries, and might consider taking short positions on commodities and equities,

Realistically, if I know that a recession is coming, it has probably already happened and it's too late to make any portfolio changes.
by Dominic
Sun Mar 18, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Who's doing 100% international equity?
Replies: 79
Views: 9043

Re: Who's doing 100% international equity?

Diversification matters. Ignoring 48% of global market cap by leaving international markets out of a portfolio is dangerous. Ignoring 52% of global market cap (the part denominated in your home currency) is far more dangerous. Just curious, but do you know what countries have had the greatest porti...
by Dominic
Sun Mar 18, 2018 9:25 pm
Forum: Investing - Theory, News & General
Topic: TSP bonds?
Replies: 92
Views: 6868

Re: TSP bonds?

These funds are fundamentally different. The F Fund, as a total bond market fund, has considerable exposure to term and credit risk. The only real risk of the G Fund is reinvestment risk; if rates fall, so does your yield on the G Fund. The G Fund is, in essence, a cash fund that pays interest at th...
by Dominic
Sun Mar 18, 2018 4:27 pm
Forum: Personal Consumer Issues
Topic: Bogleheads car buying strategies with new safety technologies
Replies: 71
Views: 4905

Re: Bogleheads car buying strategies with new safety technologies

Bottom line: I cannot go to a base or lower trim model and get the safest car anymore. In my current car search this is adding $6-8k more to every vehicle I am looking at. That's a significant number for me. That is not true for the new cars. Toyota added advanced safety features to all their cars ...
by Dominic
Sun Mar 18, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: Who's doing 100% international equity?
Replies: 79
Views: 9043

Re: Who's doing 100% international equity?

Diversification matters. Ignoring 48% of global market cap by leaving international markets out of a portfolio is dangerous. Ignoring 52% of global market cap (the part denominated in your home currency) is far more dangerous. Good discussion. Many varied and interesting perspectives. There truly is...
by Dominic
Sun Mar 18, 2018 4:00 pm
Forum: Investing - Theory, News & General
Topic: AQR Paper On Alternative Risk Premia
Replies: 5
Views: 627

Re: AQR Paper On Alternative Risk Premia

I'm still a little unclear about what carry and value mean. In fixed income, value is long government bonds with high real yields and short government bonds with low real yields. If I understand correctly, this is based on the real yield curve for a single issuer of bonds. That is, buy the highest y...
by Dominic
Thu Mar 15, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: Lower fees than VXUS?
Replies: 7
Views: 905

Re: Lower fees than VXUS?

It is not true, VWO has different exposure to China than the emerging markets component of VXUS. How is that, VWO I see 32.7% and VXUS 6.3% (so about 1/5th what is about right if Emergings is ~20%) It looks VXUS have fewer assets and I guess this is why the higher fees. I'm surprised it's so recomm...
by Dominic
Tue Mar 13, 2018 11:24 pm
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio vs. total world stock + bond fund
Replies: 20
Views: 2529

Re: 3 fund portfolio vs. total world stock + bond fund

Splitting the funds: - Allows you to hold a static US/ex-US allocation (allows you to gain a rebalancing bonus, or to tilt away from international to reduce currency risk) - Saves you a few basis points in costs - Gives you slightly more holdings in the US small-cap space - Allows you to tax-loss ha...
by Dominic
Sun Mar 11, 2018 12:27 am
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation
Replies: 6
Views: 715

Re: Asset Allocation

At your age, I would only have about 15-20% in bonds. You want growth. The only purpose of bonds is that if you need any cash between now and miuch later, you will have bonds to sell if the market is low. The long-term return of a buy-and-hold portfolio with 80-85% stocks is significantly higher th...
by Dominic
Sat Mar 10, 2018 10:52 pm
Forum: Investing - Help with Personal Investments
Topic: Best Vanguard fund for holding short term investments
Replies: 14
Views: 2580

Re: Best Vanguard fund for holding short term investments

Regarding Vanguard Ultra-Short Term Bond, it has only 4% Treasuries. Obviously I can't say for sure, but I suspect it would get nailed in a market downturn. For a retirement portfolio, Vanguard's Target Retirement funds are an excellent place to start, and will probably outperform almost any portfol...
by Dominic
Fri Mar 09, 2018 3:20 pm
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19987

Re: Why International again?

If you are going to look at past results, note that Australian and South African stocks have both dramatically outperformed US stocks from 1900 to present -- a much longer period than the short time you are looking at. With this long history of superior performance, why not keep all of your investm...
by Dominic
Fri Mar 09, 2018 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: CRISPR Cas9 [Molecular biology - Targeted genome editing]
Replies: 14
Views: 1854

Re: CRISPR Cas9 [Molecular biology - Targeted genome editing]

Opinion, of course: I wouldn't worry too much about investing in CRISPR. CRISPR is only one piece of the puzzle. There are a bunch of other steps before this gives way to viable gene therapies. Inevitably, companies that you already own through total market funds are going to score some critical pat...
by Dominic
Thu Mar 08, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA w/ Schwab
Replies: 3
Views: 475

Re: Roth IRA w/ Schwab

If you want a set it and forget it solution, Schwab's Target Retirement series is as good as any. It has excellent diversification and very low expenses. It's very aggressive, with over 90% of its holdings in stocks for the first few years of its glide path. If you really wanted, you could build a p...
by Dominic
Thu Mar 08, 2018 9:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard New Factor Funds Portfolio Statistics
Replies: 152
Views: 16471

Re: Vanguard New Factor Funds Portfolio Statistics

Thank you for doing this! It's nice to get some hard data on these new funds. I've been holding out on buying because I wasn't really sure what the portfolios looked like from a factor standpoint. The multifactor fund looks pretty impressive in terms of its valuation and quality characteristics. I'l...
by Dominic
Thu Mar 08, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: Why International again?
Replies: 224
Views: 19987

Re: Why International again?

No worries. Nobody is going to force you to invest in international if you don't want to. But quite a lot of the US economy is really covered by stocks of foreign companies. They are household names: Samsung, Honda, Toyota, Shell, BP, and a lot more. Since a lot of the ones you listed are oil and a...
by Dominic
Thu Mar 08, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: REITS and Swedroe
Replies: 71
Views: 7378

Re: REITS and Swedroe

I believe Larry isn't too fond of REITs these days. The reason they correlate with stocks poorly is that they're high dividend, and typically small-cap value stocks. Thus, they have a lot of exposure to the size, value, and term premiums. Account for all those, and REITs are really nothing special. ...
by Dominic
Wed Mar 07, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Do I, will I, ever need a bond fund?
Replies: 31
Views: 3868

Re: Do I, will I, ever need a bond fund?

You can consider the pensions to be a fixed income allocation. Do the pensions have a cost of living adjustment? If they do, you'll never need bonds. If not, it's probably a good idea to allocate at least some of your portfolio to some combination of CDs, Treasuries, and TIPS.
by Dominic
Wed Mar 07, 2018 8:02 pm
Forum: Investing - Help with Personal Investments
Topic: Simple Two Fund Portfolio vs. Diversified
Replies: 14
Views: 1680

Re: Simple Two Fund Portfolio vs. Diversified

I believe that bonds should be kept very simple. Keep them short to intermediate term, and very high quality (ideally, Treasuries or even CDs). Do that, and your portfolio benefits from flight to quality when the stock market takes a dive. High-yield bonds aren't worth it. If you want a riskier asse...
by Dominic
Mon Mar 05, 2018 11:45 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans
Replies: 130
Views: 13453

Re: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans

Larry says I wrote my first book in May of 1998 and since then DFA SV has outperformed VSIVX despite a 40 bp disadvantage in costs. And since we switched to BOSVX is has outperformed DFSVX even by more than we estimated, despite a higher ER. It's value added not costs that matter. And in some cases...
by Dominic
Mon Mar 05, 2018 12:52 pm
Forum: Investing - Help with Personal Investments
Topic: The 12% Solution
Replies: 4
Views: 1529

Re: The 12% Solution

Eh. I've read some papers on time series momentum or trend following strategies. Historically, they have returned better than buy-and-hold, and had less risk. However, I'm not convinced that this is a practical portfolio. There are serious tax implications of buying and selling asset, you have to pa...
by Dominic
Mon Mar 05, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans
Replies: 130
Views: 13453

Re: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans

I am mystified as to why this forum seems to worship Swedroe when he is continually changing course and recommending new portfolios that are supposed to give the investor some advantage. The portfolios are based on academic research which is, in turn, always based on backtesting, since no one can r...
by Dominic
Mon Mar 05, 2018 12:29 am
Forum: Investing - Help with Personal Investments
Topic: Does DFA justify the higher ER?
Replies: 16
Views: 1378

Re: Does DFA justify the higher ER?

The DFA fund has about 0.5 value exposure, so if the premium is 1% going forward, you get an extra 0.5% return, and DFA is essentially paying for its own expense ratio. If the vallue premium is larger, you win. Also, if there's a quality premium going forward, you win again, since DFA screens out j...
by Dominic
Mon Mar 05, 2018 12:05 am
Forum: Investing - Help with Personal Investments
Topic: Does DFA justify the higher ER?
Replies: 16
Views: 1378

Re: Does DFA justify the higher ER?

The DFA fund has about 0.5 value exposure, so if the premium is 1% going forward, you get an extra 0.5% return, and DFA is essentially paying for its own expense ratio. If the vallue premium is larger, you win. Also, if there's a quality premium going forward, you win again, since DFA screens out ju...
by Dominic
Sun Mar 04, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: Looking for Stock Allocation Article - Home Bias and Currency Risk
Replies: 4
Views: 454

Re: Looking for Stock Allocation Article - Home Bias and Currency Risk

I didn't find the precise numbers upon initial search. Saw references to David Swenson of Yale in a few places. What is your home country? (I am assuming non-US, or else Global equities already keep a fair amount in your home currency). I'm in the US, but I was interested in reading this article (a...
by Dominic
Sun Mar 04, 2018 8:08 pm
Forum: Investing - Theory, News & General
Topic: Looking for Stock Allocation Article - Home Bias and Currency Risk
Replies: 4
Views: 454

Looking for Stock Allocation Article - Home Bias and Currency Risk

I recall an article (white paper or blog post, maybe) that suggested a strategy for balancing currency risk with the need to diversify globally. Basically, the gist was that you'd put 1/3 of your equities in your home country, and the remaining 2/3 at market cap weight. From what I remember, this st...
by Dominic
Sun Mar 04, 2018 7:26 pm
Forum: Investing - Theory, News & General
Topic: Does Anyone Invest In Berkshire Hathaway Instead Of Index Funds?
Replies: 69
Views: 9713

Re: Does Anyone Invest In Berkshire Hathaway Instead Of Index Funds?

As a replacement, never. As a supplemental investment, as a small fraction of a portfolio, it's not terrible. It does pretty well, it's diversified in terms of sector composition, and I would hope that the market has priced in that Buffet won't be CEO forever. That said, GE was a pretty high-powered...
by Dominic
Sun Mar 04, 2018 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Rolling Over out of Employer-Sponsored Plans
Replies: 3
Views: 296

Re: Rolling Over out of Employer-Sponsored Plans

Here's Vanguard's rollover IRA page . Click around and it'll go through the advantages and disadvantages of rolling your account over, and it explains the whole process. As far as I can tell, rolling over is almost always the better option. You get a better selection of low-expense funds and condens...
by Dominic
Sat Mar 03, 2018 9:24 pm
Forum: Investing - Theory, News & General
Topic: Retail vs. Institutional Investing
Replies: 9
Views: 1046

Re: Retail vs. Institutional Investing

In some sense, mutual funds and ETFs are institutional investors. The largest index mutual fund families can typically have near-zero transaction costs or tax implications. As for pulling your money out early in a crash, they can't predict the future. Yesterday looked like it was going to be a down ...
by Dominic
Fri Mar 02, 2018 5:04 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Total International (VXUS) is an inferior choice?
Replies: 10
Views: 2630

Re: Vanguard Total International (VXUS) is an inferior choice?

Regarding the holdings difference, I did some detective work a few months ago, and by my guesstimates, most of the holdings that you miss out on by holding VXUS instead of VEA/VWO are China A-Shares. The story with these is that the Chinese stock market has many share classes, which are traded in di...
by Dominic
Fri Mar 02, 2018 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Any ETFs that resemble a balanced index or target fund?
Replies: 5
Views: 405

Re: Any ETFs that resemble a balanced index or target fund?

I don't have a broker, just Fidelity. That statement made me laugh out loud! Thanks! (I think it might be a good advertising blurb for Vanguard though. :twisted:) (Also: I don't think that e.r. for GAL is really that low.) I'm seeing a 0.25% expense ratio for GAL, and I don't know if that includes ...
by Dominic
Fri Mar 02, 2018 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Any ETFs that resemble a balanced index or target fund?
Replies: 5
Views: 405

Re: Any ETFs that resemble a balanced index or target fund?

A handful of ETFs-of-ETFs: - AOA - iShares Core Aggressive Allocation ETF - 40% US equities, 40% international equities, 16% US bonds, 4% international currency-hedged bonds - AOR - iShares Core Growth Allocation ETF - 30% US equities, 30% international equities, 32% US bonds, 8% international curre...
by Dominic
Fri Mar 02, 2018 2:09 pm
Forum: Investing - Theory, News & General
Topic: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade
Replies: 79
Views: 10314

Re: Harvard blows $1Billion picking stocks, averaged 4.4% returns over last decade

On one hand, I get it. The three-fund portfolio that's good enough for most Bogleheads isn't good enough for Harvard, because we have different needs. This is a multibillion dollar institution, and they don't want to take too much risk and lose their donations. They need to diversify past a market w...
by Dominic
Fri Mar 02, 2018 2:01 pm
Forum: Investing - Help with Personal Investments
Topic: AOBC, horrible decision [American Outdoor Brands]
Replies: 30
Views: 3836

Re: AOBC, horrible decision [American Outdoor Brands]

I'd get out. Not worth hanging on to the risk of holding an individual stock. We all make investing mistakes. This one is a $2800 capital loss, minus any dividends you received over the course of holding it. Not too big of deal in the grand scheme of things, and it's a learning experience. If you ha...
by Dominic
Fri Mar 02, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6550
Views: 1406065

Re: U.S. stocks in freefall

And the Total Stock Market Index is up very slightly for the day.

False alarm folks. Back to your regularly scheduled asset allocations.
by Dominic
Wed Feb 28, 2018 11:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in freefall
Replies: 6550
Views: 1406065

Re: U.S. stocks in freefall

These daily swings a + 30 - 40 + 45 - 40 make zero sense to me. It’s just volatility. It’s nothing new. The long term trend is up. What was new was the total lack of volatility in 2017. No month with a loss, no day with a rise of more than 1.4%, no days with substantial drawdowns. 2018 is just back...
by Dominic
Wed Feb 28, 2018 11:27 pm
Forum: Investing - Theory, News & General
Topic: Your Paradigm for Long-term Inflation Risk?
Replies: 29
Views: 1816

Re: Your Paradigm for Long-term Inflation Risk?

I'm early in the accumulation phase. At this point, stocks are a good enough hedge against inflation for me. I'm considering adding a very small amount of a commodities index as an additional uncorrelated inflation hedge, but I'm still unsure of how commodities futures funds actually work. I probabl...
by Dominic
Tue Feb 27, 2018 9:21 pm
Forum: Investing - Theory, News & General
Topic: TSP fails secuity audit
Replies: 19
Views: 3037

Re: TSP fails secuity audit

Be sure to also understand the inheritance rules for a TSP since they are in some situations a lot worse than for an IRA. *snip* Thanks for this. Seems crazy. If they dismantle the G fund as they'd like to (proposed, folks who haven't heard can google it, please no further discussion) I think most ...