Search found 1093 matches
- Wed Nov 24, 2021 8:06 pm
- Forum: Investing - Theory, News & General
- Topic: Why will international stocks "mean revert" and begin beating domestic stocks?
- Replies: 77
- Views: 8918
Re: Why will international stocks "mean revert" and begin beating domestic stocks?
At the moment Europe Japan and EM all have better Price to earnings growth ratios than the US. Seems like a decent chance that leads to outperformance.
- Sun Nov 21, 2021 3:29 am
- Forum: Investing - Theory, News & General
- Topic: Why do companies still offer dividends?
- Replies: 68
- Views: 6532
Re: Why do companies still offer dividends?
The only point of owning public stocks is the eventual value of their dividends (at a theoretical level). Yeah buybacks are similar for a time but A company can't entirely eat itself. That is not to say that stock that currently pay dividends should be value over those that don't. Can you explain about a company "eating itself"? Whether a company is sending money out the door as dividends or as buybacks, in both cases the money goes to existing shareholders. If sent as dividends, the money goes out proportional to the number of shares owned. If sent as buybacks, it goes to those who choose to sell. How does one way of returning capital "eat" the company more than the other? Reducing its share count. Just pointing out sh...
- Sat Nov 20, 2021 3:35 am
- Forum: Investing - Theory, News & General
- Topic: Why do companies still offer dividends?
- Replies: 68
- Views: 6532
Re: Why do companies still offer dividends?
The only point of owning public stocks is the eventual value of their dividends (at a theoretical level). Yeah buybacks are similar for a time but A company can't entirely eat itself. That is not to say that stock that currently pay dividends should be value over those that don't.
- Mon Nov 08, 2021 7:46 pm
- Forum: Investing - Theory, News & General
- Topic: Valuations: 1999 vs now
- Replies: 152
- Views: 14611
Re: Valuations: 1999 vs now
That's why I added that 30 year SWRs were slightly improved over that same period by diversifying across ex-U.S. stock. I'm sure the Japanese-only investor, with data through the late 80's, could have claimed a nice SWR and determined that international diversification was not needed going forward. All that means is that things have been relatively favorable for the US investor in the past. Extrapolating that out and determining nothing can go wrong here in the U.S. in the next 50 years or that if it does, the aggregate of tens of other countries will be impacted is just as much of an extreme leap. Japan is regularly mentioned in these discussions, but it's not even remotely on par with where the U.S. is now. IIRC, the CAPE for Japan reach...
- Mon Nov 08, 2021 10:05 am
- Forum: Investing - Theory, News & General
- Topic: Valuations: 1999 vs now
- Replies: 152
- Views: 14611
Re: Valuations: 1999 vs now
US real estate isn't even expensive (in terms of multiples of income) relative to many other places like Canda, Austrialia, and China)Keenobserver wrote: ↑Sun Nov 07, 2021 10:35 am Do you guys thibk Real Estate at least is in a bubble, or do folks here surmise prices will continue to climb?
- Sun Nov 07, 2021 10:05 am
- Forum: Investing - Theory, News & General
- Topic: Valuations: 1999 vs now
- Replies: 152
- Views: 14611
Re: Valuations: 1999 vs now
The thing is there is some reason to believe bonds with negative or close to negative real rates will be the standard going foward.invest2bfree wrote: ↑Sat Nov 06, 2021 9:24 am
If bonds are in a bubble with negative real yields you cannot use bonds as a method to value stocks.
- Tue Nov 02, 2021 2:16 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
- Mon Sep 27, 2021 3:31 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
Re: Small Cap Value heads Rejoice !!!
Is today's SCV over LCG growth rotation tied to any piece of news? Usually with something this dramatic you expect to see a cause.
- Sun Sep 26, 2021 1:38 pm
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks continue to soar!
- Replies: 22381
- Views: 2119138
Re: U.S. stocks continue to soar!
There are a lot of them in China from what I have read. It still seems mostly a China thing. There capital markets are fairly walled off from the rest of the world. There are a few markets in the rest of the world that have property price/income ratios similar to China but those are more the exception than the norm.
- Thu Jun 17, 2021 11:59 am
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
- Tue Jun 08, 2021 10:33 pm
- Forum: Investing - Theory, News & General
- Topic: The International Cap Weight (and Beyond!) Discussion Thread
- Replies: 253
- Views: 21559
Re: The International Cap Weight (and Beyond!) Discussion Thread
I assume that there exists a relative valuation of US and international stocks at which they are equally good investments. And I have no idea where that point is. So I buy both. I have never understood how some people don’t get this point. There could literally be “anti-innovation” laws in France, UK, Japan, etc. There could be widespread public opinion in those countries that “corporations are evil.” There could be “mandatory 5-hour mid-day nap” laws that hampered employee productivity. And STILL investments in those countries could outperform US equities. They could, but that would be extremely unlikely. By the way, according to Vanguard, VXUS P/E is about 18x, and VTI P/E is about 27x. Not a difference that would make your scenario work...
- Tue Jun 08, 2021 12:35 am
- Forum: Investing - Theory, News & General
- Topic: The International Cap Weight (and Beyond!) Discussion Thread
- Replies: 253
- Views: 21559
Re: The Official Bogleheads INTERNATIONAL CAP WEIGHT (AND BEYOND!) Discussion Thread
I am a bit above cap weight as I go with a 50/50 split. I have contemplated going past that to like 60/40 or even further.
- Sat Jun 05, 2021 9:09 pm
- Forum: Investing - Theory, News & General
- Topic: How many here follow Bogle's "no international" theory?
- Replies: 757
- Views: 59453
Re: How many here follow Bogle's "no international" theory?
Also, many effectively foreign companies are actually listed on the US stock market, or they get gobbled up by US-listed companies. A classic example is Israeli companies. The Israeli stock market has been stagnating for many years. The thing is that some of their most successful companies are listed in the US and not in Israel, and many of their successful new companies get acquired by US-listed companies. Generally US listed companies that are from other countries get included in indexes in their home country. Like Alibaba for example appears in international funds not US funds. BABA is an ADR - that's different. I'm talking about foreign companies that have regular listings, such as the Dutch company NXP Semiconductors (NXPI) which is p...
- Sat Jun 05, 2021 3:40 pm
- Forum: Investing - Theory, News & General
- Topic: How many here follow Bogle's "no international" theory?
- Replies: 757
- Views: 59453
Re: How many here follow Bogle's "no international" theory?
Generally US listed companies that are from other countries get included in indexes in their home country. Like Alibaba for example appears in international funds not US funds.visualguy wrote: ↑Fri Jun 04, 2021 9:18 pm
Also, many effectively foreign companies are actually listed on the US stock market, or they get gobbled up by US-listed companies. A classic example is Israeli companies. The Israeli stock market has been stagnating for many years. The thing is that some of their most successful companies are listed in the US and not in Israel, and many of their successful new companies get acquired by US-listed companies.
- Sat Jun 05, 2021 3:33 pm
- Forum: Investing - Theory, News & General
- Topic: How many here follow Bogle's "no international" theory?
- Replies: 757
- Views: 59453
Re: How many here follow Bogle's "no international" theory?
Sure but Telsa might not be the biggest winner in the electric car market in the long term. It could be Volkswagen or Honda or whatever. And Tesla shares are super expensive so even if they do fairly well it does not guarantee good results.
- Mon May 31, 2021 11:09 pm
- Forum: Investing - Theory, News & General
- Topic: How many here follow Bogle's "no international" theory?
- Replies: 757
- Views: 59453
Re: How many here follow Bogle's "no international" theory?
YesBrowser wrote: ↑Wed Aug 19, 2015 9:15 pm
Since US companies are already deriving half their revenues from foreign countries, if you invest in foreign equities wouldn't that mean that much more than half of the revenues generated by companies in your global stock portfolio be derived from non-U.S. sources? Is that what you want?
- Sat May 01, 2021 3:15 am
- Forum: Investing - Theory, News & General
- Topic: EM local debt - diversification benefits?
- Replies: 8
- Views: 953
Re: EM local debt - diversification benefits?
Dont you run the risk of indirectly also investing into forex, I mean if currency fluctuates your gains can be wiped/impacted. To give an example, one of my friends invested into a fund(almost like stable value fund), but in a local currency, while yield was 8%, but currency fluctuation wiped it all out as the local currency dropped vs Dollar, and I think he was pretty close to being break even if not losing some money. With bonds probably even worst as yield is not fixed, LEMB is -3.6% for the year. The forex thing is actually one of the appeals of investing in local currency EM bonds. JackoC explained out why is his post better than I could. Not likely something many people would want a 50% position or anything but a nice diversifier.
- Mon Apr 19, 2021 6:33 am
- Forum: Investing - Theory, News & General
- Topic: EM has concentrated risk in china/taiwan
- Replies: 94
- Views: 10950
Re: EM has concentrated risk in china/taiwan
But so is the economy of Japan. And South Korea. And the US for that matter.stan1 wrote: ↑Sun Apr 18, 2021 11:25 amTheir economies are very interconnected, albeit in a complicated way.sunnywindy wrote: ↑Sun Apr 18, 2021 11:06 am (Note: This is not intended as a political post - I'm just stating a couple of important facts that are germane to the overall discussion.)
Why are people lopping together Taiwan and China as if they are one entity in the EM Index country weightings? Taiwan has had its own currency since 1949 and its own stock exchange since 1961. The weightings should be treated as separate.
- Mon Mar 22, 2021 4:27 am
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks in free fall
- Replies: 36221
- Views: 4650893
Re: U.S. stocks in free fall
Its probably about time they withdrew that guarantee anyway. Japanese stocks have been doing ok.
- Wed Mar 17, 2021 9:29 pm
- Forum: Investing - Theory, News & General
- Topic: Ray Dalio Bond Advice - What options do we have?
- Replies: 85
- Views: 13343
Re: Ray Dalio Bond Advice - What options do we have?
Not directly no but presumably default risk will be lower for USD EM bonds in the currencies of those countries strengthen vs the USD. That could lead to narrowing spreads.Always passive wrote: ↑Wed Mar 17, 2021 6:43 amIf the funds does not invest in the local currency, you are absolutely right. Many emerging markets bond funds invest in loans taken by emerging markets in dollars. Those do not provide any hedge against dollar weakness.
- Wed Mar 17, 2021 2:06 am
- Forum: Investing - Theory, News & General
- Topic: Ray Dalio Bond Advice - What options do we have?
- Replies: 85
- Views: 13343
Re: Ray Dalio Bond Advice - What options do we have?
- Fri Mar 12, 2021 1:34 pm
- Forum: Investing - Theory, News & General
- Topic: Large Growth’s Outperformance Over Small Value
- Replies: 24
- Views: 2583
Re: Large Growth’s Outperformance Over Small Value
Yeah that is always going to favor what has the most recent outperformance (since you got to buy the currently outperforming asset "on sale")TheDoctor91 wrote: ↑Fri Mar 12, 2021 3:07 am What about when accounting for monthly contributions?
LCG laps SCV
- Mon Mar 08, 2021 11:31 pm
- Forum: Investing - Theory, News & General
- Topic: Cliff Asness: The Long Run Is Lying To You
- Replies: 86
- Views: 13709
Re: Cliff Asness: The Long Run Is Lying To You
But its one thing to expect the US to continue to have a valuation gap with the rest of the world and quite anther to expect the gap to keep getting wider. As is shown in the article most of the outperformance of the US over international was from the valuation gap getting wider.mrspock wrote: ↑Mon Mar 08, 2021 10:15 pmOver the long run.... that’s exactly what I expect. The US has certain structural, legal, geographic, political and cultural advantages which I find difficult to overlook. Maybe not indefinitely... but long enough that it will be somebody else’s problem when that day comes.Random Walker wrote: ↑Fri Mar 05, 2021 10:58 pm He makes the point that we should not expect past performances to repeat unless we expect past multiple expansions to continue expanding indefinitely out into the future.
- Sat Mar 06, 2021 10:18 pm
- Forum: Investing - Theory, News & General
- Topic: Ray Dalio's All Weather Portfolio is NOT Working in this 2021 Market Correction
- Replies: 40
- Views: 7444
Re: Ray Dalio's All Weather Portfolio is NOT Working in this 2021 Market Correction
All weather portfolios don't need to protect you from 5% drawdowns.
- Sat Mar 06, 2021 9:32 pm
- Forum: Investing - Theory, News & General
- Topic: Cliff Asness: The Long Run Is Lying To You
- Replies: 86
- Views: 13709
Re: Cliff Asness: The Long Run Is Lying To You
People using such metrics are ignoring the ever-shrinking measuring stick, bond yields. As these have been driven ever lower, the value of out year earnings in growth names has risen. So long as you have faith in TPTB to keep a lid on rates a la Japan, the current environment obtains. JMHO.’ But that is kinda missing the point. Unless you expect the value spread to keep getting wider you should still subtract the effects of multiple expansion when looking at the premium. Even Schiller has tweaked his model. The CAPE model was developed back when you could still get a real return on bonds. If you think about it, stocks don’t owe you any particular return, as measured by P/E, and the idea that there is some natural level such as 15-20 isn’t ...
- Sat Mar 06, 2021 7:19 am
- Forum: Investing - Theory, News & General
- Topic: Cliff Asness: The Long Run Is Lying To You
- Replies: 86
- Views: 13709
Re: Cliff Asness: The Long Run Is Lying To You
But that is kinda missing the point. Unless you expect the value spread to keep getting wider you should still subtract the effects of multiple expansion when looking at the premium.dmcmahon wrote: ↑Sat Mar 06, 2021 12:35 am People using such metrics are ignoring the ever-shrinking measuring stick, bond yields. As these have been driven ever lower, the value of out year earnings in growth names has risen. So long as you have faith in TPTB to keep a lid on rates a la Japan, the current environment obtains. JMHO.’
- Wed Mar 03, 2021 3:18 am
- Forum: Investing - Theory, News & General
- Topic: Does anyone have "fun" ETFs?
- Replies: 62
- Views: 4953
Re: Does anyone have "fun" ETFs?
I have ~$400 in TUR the Turkey single country etf. I guess that counts.
- Fri Feb 26, 2021 5:38 pm
- Forum: Investing - Theory, News & General
- Topic: Bonds: What Are They Doing? Are They Doing Things?? Let's Find Out!
- Replies: 2297
- Views: 256133
Re: Bonds in free fall
Too bad I wanted bonds to keep freefalling a few more days.
- Thu Feb 25, 2021 4:51 pm
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks in free fall
- Replies: 36221
- Views: 4650893
- Thu Feb 25, 2021 11:41 am
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks in free fall
- Replies: 36221
- Views: 4650893
Re: U.S. stocks in free fall
Today continues the value rotation trend of the week as the value side of the style box is down less.
- Wed Feb 24, 2021 6:31 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
Re: Small Cap Value heads Rejoice !!!
So small value is up on the S+P 500 going back to the beginning of 2020. It sure caught up fast. It was 20% behind at the end of October.
- Wed Feb 24, 2021 2:19 pm
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks continue to soar!
- Replies: 22381
- Views: 2119138
Re: U.S. stocks continue to soar!
Everyday this week has been an into value rotation. Not sure if that is significant or not.
- Wed Feb 24, 2021 1:40 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
Re: Small Cap Value heads Rejoice !!!
Is anyone aware of some good research into why AVUV is better than a fund like IJS/SLYV? It’s not “better”. It’s just different. AVUV, VIOV, VBR, etc all fine funds. And who says you can’t own more than one? If you're tilting toward a factor, one ETF could absolutely be "better" if it captures that factor better. Anyway, here's why Paul Merriman recommends AVUV for SCV . The problem imo as there are multiple ways to measure factors. Like for value if you use Fama French models the ones that sort by just price to book are going to look better. But price to book is potentially the measure we should be most skeptical of going forward. Some people like EV/EBITDA or PE or P/CF ect. But we really don't know which methodology will work ...
- Mon Feb 22, 2021 10:21 am
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
- Sat Feb 20, 2021 12:55 am
- Forum: Investing - Theory, News & General
- Topic: Bonds: What Are They Doing? Are They Doing Things?? Let's Find Out!
- Replies: 2297
- Views: 256133
Re: Bonds in free fall
Umm the rate is already 0-0.25%. There is no more to cut unless they go negative. And the fed doesn't control long term rates.checkyourmath wrote: ↑Fri Feb 19, 2021 11:26 pmThe annual March 15th rate cut. Small cuts are big gains. They aren't going to go negative if that helps.Marseille07 wrote: ↑Fri Feb 19, 2021 10:46 pmWhich interest rate cut are you speaking of? The Fed doesn't have much room to cut it further.checkyourmath wrote: ↑Fri Feb 19, 2021 9:58 pm Bonds are not in free fall. An interest rate cut will be coming in March like usual. A cut in rates means an increase in price which is great for bond holders! I wouldn't have sold my amazing bonds in 2017 if I had known that they were going to drive to the interest rate down to zero. Lesson learned! I don't think bonds will go negative in the US which is the good news.
- Thu Feb 18, 2021 9:25 pm
- Forum: Investing - Theory, News & General
- Topic: Abandon Fama French Factor Model?
- Replies: 52
- Views: 4637
Re: Abandon Fama French Factor Model?
I don't think the 1 3 and 5 year numbers mean much because so much of it is driven by multiple expansion of growth stocks. Value underperformed in the 5 years prior to that but is was a much smaller thing driven by fundamentals. So yes its possible value doesn't have a premium anymore but the scale of the underperformance recently isn't what would make that argument.
- Wed Feb 17, 2021 9:42 pm
- Forum: Investing - Theory, News & General
- Topic: Bonds: What Are They Doing? Are They Doing Things?? Let's Find Out!
- Replies: 2297
- Views: 256133
Re: Bonds in free fall
Even though I own some long bonds I am unhappy every time I see them go up (outside of market cirsis). I want to see the long yield get back to 3.5% or so.
- Wed Feb 17, 2021 9:33 pm
- Forum: Investing - Theory, News & General
- Topic: Why the disdain for managed funds like ARKK that destroy total market funds?
- Replies: 1587
- Views: 210351
Re: Why the disdain for managed funds like ARKK that destroy total market funds?
10% is not a small amount of one stock you know.jay22 wrote: ↑Wed Feb 17, 2021 2:11 pmTesla is less than 10% of ARK funds holdings.Californiastate wrote: ↑Wed Feb 17, 2021 2:01 pm Cathie Wood is the new Elaine Garzerilli. Her spoken name alone evokes EF Hutton. I wish the best for her but in the end the peloton usually consumes the baroudeur. She now seems to be doubling down on TSLA. We'll see how this plays out.
- Wed Feb 17, 2021 9:11 pm
- Forum: Investing - Theory, News & General
- Topic: Small Cap Value heads Rejoice !!!
- Replies: 5577
- Views: 618925
Re: Small Cap Value heads Rejoice !!!
yeah that is the case for most of the SCV funds now. Not surprising as trailing earnings are almost all in the pandemic.
- Wed Feb 17, 2021 8:47 am
- Forum: Investing - Theory, News & General
- Topic: Great Courses and what current ones miss (I miss something every time I buy one..!)
- Replies: 7
- Views: 1498
Re: Great Courses and what current ones miss (I miss something every time I buy one..!)
There is a relatively new course called how to plan the perfect retirement that is quite good. Also on great courses plus.
- Wed Feb 17, 2021 4:55 am
- Forum: Investing - Theory, News & General
- Topic: Japan’s Nikkei 225 briefly crosses 30,000 for first time in more than three decades
- Replies: 60
- Views: 7372
Re: Japan’s Nikkei 225 briefly crosses 30,000 for first time in more than three decades
I wonder if the Nikkei 225 will reach an ath in the next few years? My guess is by the end of the decade at a minimum it likely will. I wouldn't be surprised to see it happen in 2-4 years.
- Sun Feb 14, 2021 10:10 pm
- Forum: Investing - Theory, News & General
- Topic: Overweighting VWO because of China!
- Replies: 57
- Views: 6092
Re: Overweighting VWO because of China!
If you wanted more China my inclination would be to use an A shares specific fund. Those are the shares that are not represented fully (or maybe at all ) in VT.
- Sat Feb 13, 2021 7:39 pm
- Forum: Investing - Theory, News & General
- Topic: How can 6.45% be a bubble?
- Replies: 47
- Views: 6996
Re: How can 6.45% be a bubble?
Well stocks were in a bubble 20 years ago for sure. That has a lot to do with the just ok returns.
- Sat Feb 13, 2021 7:38 pm
- Forum: Investing - Theory, News & General
- Topic: Why the disdain for managed funds like ARKK that destroy total market funds?
- Replies: 1587
- Views: 210351
Re: Why the disdain for managed funds like ARKK that destroy total market funds?
Meh. She destroyed total market funds in the past. Will she in the future? Was she skilled or just lucky. Or perhaps a bit of both. If she was skilled will she be able to continue the performance with way more assets? Its hard to say. Obviously if I knew the future I would have invested in her fund over VTI but I don't so I didn't.
- Thu Feb 11, 2021 7:42 pm
- Forum: Investing - Theory, News & General
- Topic: A discussion of popular/promising factor ETFs
- Replies: 33
- Views: 5322
Re: A discussion of popular/promising factor ETFs
But has it really made any meaningful difference? I am not smart enough to know why, but (as is a common criticism of factor funds) something must be getting lost in the implementation. I can't post the fancy graphs, but go to Portfolio Visualizer and backtest IJS versus VISVX from 2001 to present, then from 2013 to present, as they changed to the CRSP Index in April 2013. I am just not seeing a meaningful difference in behavior versus the S&P 600 Index. I've never been particularly interested in IJS so had never actually checked the methodology, but it looks like it works the same way as VBR: The index constituents are then sorted in ascending order of the ratio Growth Rank/Value Rank. The companies at the top of the list have a highe...
- Wed Feb 10, 2021 1:18 pm
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks continue to soar!
- Replies: 22381
- Views: 2119138
Re: U.S. stocks continue to soar!
Less companies that lost money in 2020 in the NASDAQ probably. I would expect it to go back to the normal relationship in 2021 or 2022rockstar wrote: ↑Tue Feb 09, 2021 11:08 pm These are crazy. The NASDAQ 100 is cheaper than the S&P 500.
https://www.wsj.com/market-data/stocks/peyields
While bonds are just shy of 100x.
- Tue Feb 09, 2021 2:09 pm
- Forum: Investing - Theory, News & General
- Topic: TSLA: What Changed?
- Replies: 1158
- Views: 137337
Re: TSLA: What Changed?
2. A great marketing tool to show Tesla is thinking ahead, is embracing new technologies and more modern ways of doing business. I know this is going to be hard for many at Bogleheads to accept, but cryptocurrencies are seen as the future by a lot of people, especially younger people. Tesla aligning itself with that vision is incredibly shrewd. I am aware that that opinion exist but I admit I don't really get it. Bitcoin isn't useful for anything legal really. I mean it makes sense for Tesla to do this because people who love Bitcoin and Tesla overlap a lot. I think a better formulation here is, " I believe Bitcoin isn't useful for anything legal really." It's like saying rock and roll is silly and not really of any value, can't ...
- Tue Feb 09, 2021 2:04 pm
- Forum: Investing - Theory, News & General
- Topic: Why not add high-yield bonds?
- Replies: 101
- Views: 11701
Re: Why not add high-yield bonds?
What are you thoughts on EM government bonds in a scenario in which all stocks become extremely expensive? I understand that they are stock like in their risk but it seems to me that their risk profile might be favorable if global CAPE (or whatever metric you want to use) reaches 35 or 40. For instance, they performed very well from 2000-2003 and in the 2008 financial crisis they recovered quickly enough that they had a different bottom. Thoughts? I have a slice of these as well in the form of Vanguard's active fund VEGBX. I held EMB for several years but I like the active management of VEGBX better for this asset class of course this introduces manager risk as well. I would probably give up my allocation to ANGL before I give up my alloca...
- Tue Feb 09, 2021 1:01 am
- Forum: Investing - Theory, News & General
- Topic: TSLA: What Changed?
- Replies: 1158
- Views: 137337
Re: TSLA: What Changed?
I am aware that that opinion exist but I admit I don't really get it. Bitcoin isn't useful for anything legal really. I mean it makes sense for Tesla to do this because people who love Bitcoin and Tesla overlap a lot.Prahasaurus wrote: ↑Tue Feb 09, 2021 12:24 am
2. A great marketing tool to show Tesla is thinking ahead, is embracing new technologies and more modern ways of doing business. I know this is going to be hard for many at Bogleheads to accept, but cryptocurrencies are seen as the future by a lot of people, especially younger people. Tesla aligning itself with that vision is incredibly shrewd.
- Mon Feb 08, 2021 5:49 am
- Forum: Investing - Theory, News & General
- Topic: Are factors (size, value, etc.) simply another way to adjust risk?
- Replies: 25
- Views: 1968
Re: Are factors (size, value, etc.) simply another way to adjust risk?
I've heard factors explained as a way of taking on additional risk. Meaning, the reason they return a premium could be explained by the fact that you are taking on additional risk. My question is: does increased exposure to factors actually increase returns on a risk-adjusted basis, or is it merely increasing risk? Expanding on that a bit, I'm essentially picturing in my head a dial. Turn the dial left and you decrease risk/reward. Turn the dial right and you increase risk/reward. Leverage is a perfect example of this risk dial. So I'm wondering is factor exposure merely another way of turning this dial, akin to leverage? Or would increased factor exposure have some sort of diversifying affect, as if it is a different kind of risk compared...