Search found 1562 matches

by ChinchillaWhiplash
Fri May 26, 2023 3:26 pm
Forum: Investing - Theory, News & General
Topic: "Does it Pay to Diversify by Style?
Replies: 31
Views: 2811

Re: "Does it Pay to Diversify by Style?

So with this conclusion from the article it seems that one should diversify with “style”. I would think that the heaviest weight should be MCB with = parts of the surrounding styles. “But the huge performance differential between value and growth during the 2022 bear market is a testament to the value of style-based diversification. Because it’s impossible to predict which style will fare best in any particular market, it’s prudent to maintain a diversified portfolio and avoid overweighting either value or growth.” Doesn’t TSM have a natural tilt to it due to outperformance of one of the style boxes? Is the difference being that the tilts are dynamic and constantly changing so you do not have to keep adjusting your %s? This way you don’t wo...
by ChinchillaWhiplash
Fri May 26, 2023 1:40 pm
Forum: Investing - Theory, News & General
Topic: "Does it Pay to Diversify by Style?
Replies: 31
Views: 2811

Re: "Does it Pay to Diversify by Style?

Here is where the problem is. TSM as in VTI has a LCG tilt with 32% in this category. Tech tilt to with highest % in this sector at >24%. Might be a good argument for a “tilt” towards Small and Value to balance things out. Pretty easy and cheap to slice and dice nowadays. Is there a fund that does this already that is still relatively passive?
by ChinchillaWhiplash
Thu May 25, 2023 9:57 pm
Forum: Investing - Theory, News & General
Topic: Do you track your returns, and if so, why?
Replies: 103
Views: 8595

Re: Do you track your returns, and if so, why?

Yes. Helps with rebalancing with new funds, dividends, and to sell off a fund to buy the fund that is down. Have tilts and more than 3 funds.
by ChinchillaWhiplash
Thu May 25, 2023 8:12 am
Forum: Investing - Theory, News & General
Topic: Why not Nasdaq and Dow?
Replies: 52
Views: 6749

Re: Why not Nasdaq and Dow?

So if you look at performance of the major indexes, it would appear that Nasdaq 100 has been superior to the S&P 500 by a large margin. The Dow 30 also beat it. Now that cheap index funds are available to hold these indexes, why would you not hold these over SP500 or TSM? Is there something inferior in the methodology of these indexes over SP500 or TSM? Are they not diversified enough? Check your data. Nasdaq was in the toilet for the first decade of the 21st century. I looked at a chart from 1980 to present. Nas up 12,000+ %. SP500 up 2200%. Dow up 2400%. That # doesn't sound right, I think you're looking at the price index, not total return. Keep in mind that significant portion of the total return from S&P500 is from dividend. N...
by ChinchillaWhiplash
Thu May 25, 2023 8:09 am
Forum: Investing - Theory, News & General
Topic: Why not Nasdaq and Dow?
Replies: 52
Views: 6749

Re: Why not Nasdaq and Dow?

A perfectly lovely combination that addresses (statistically) all the QQQ naysayers...50% QQQ and 50% IJS...the combination adds 2-3% CAGR on all rolling periods over SPY. And it's hard to argue the combination isn't MORE diversified than the SPY either. During this time period IJR had very high outperformance to SP500. QQQ was pretty close to SP500 but a little better also. Seems more like an argument for SC and SCV which IJR leans toward. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercen...
by ChinchillaWhiplash
Tue May 23, 2023 10:58 am
Forum: Investing - Theory, News & General
Topic: Why does the market grow?
Replies: 64
Views: 4731

Re: Why does the market grow?

alluringreality wrote: Tue May 23, 2023 10:36 am
ChinchillaWhiplash wrote: Tue May 23, 2023 10:25 amEven when inflation adjusted the markets keep going up. The money has to come from somewhere. I know that this is a bit abstract but it is something that is hard to understand. Please shed some light.
Look at page 40 here for one discussion around inflation and stock prices.
https://www.google.com/books/edition/_/ ... =inflation
Thank you for this reference. Some useful info in there. Doesn’t quite give me answer but definitely sheds some light on the subject
by ChinchillaWhiplash
Tue May 23, 2023 10:50 am
Forum: Investing - Theory, News & General
Topic: Why does the market grow?
Replies: 64
Views: 4731

Re: Why does the market grow?

I’m not talking about individual companies. Looking at the markets as a whole. Where does all the new $s come from? New money has to go in for it to keep going up.
by ChinchillaWhiplash
Tue May 23, 2023 10:25 am
Forum: Investing - Theory, News & General
Topic: Why does the market grow?
Replies: 64
Views: 4731

Why does the market grow?

Why and how does the stock market as a whole go up over time? Where does the increased value come from? Is it inflation? Money being pulled from other investment sources such as gold? Money that used to sit in a bank vault being invested now? Even when inflation adjusted the markets keep going up. The money has to come from somewhere. I know that this is a bit abstract but it is something that is hard to understand. Please shed some light.
by ChinchillaWhiplash
Tue May 23, 2023 8:15 am
Forum: Investing - Theory, News & General
Topic: Why not Nasdaq and Dow?
Replies: 52
Views: 6749

Re: Why not Nasdaq and Dow?

watchnerd wrote: Mon May 22, 2023 11:15 pm
ChinchillaWhiplash wrote: Mon May 22, 2023 4:59 pm So if you look at performance of the major indexes, it would appear that Nasdaq 100 has been superior to the S&P 500 by a large margin. The Dow 30 also beat it. Now that cheap index funds are available to hold these indexes, why would you not hold these over SP500 or TSM? Is there something inferior in the methodology of these indexes over SP500 or TSM? Are they not diversified enough?
Check your data.

Nasdaq was in the toilet for the first decade of the 21st century.
I looked at a chart from 1980 to present. Nas up 12,000+ %. SP500 up 2200%. Dow up 2400%.
by ChinchillaWhiplash
Mon May 22, 2023 6:27 pm
Forum: Investing - Theory, News & General
Topic: Why not Nasdaq and Dow?
Replies: 52
Views: 6749

Re: Why not Nasdaq and Dow?

It is curious that the financial media uses both the Dow and Nasdaq as a gauge of overall market conditions along with the SP500. How much of the overall market cap are in these indexes? Why do these indexes seem to hold so much weight in reference to the overall market? Seems the SP500 should be good enough and tracks pretty close to the market as a whole and should be the only index that matters for tracking market moves.
by ChinchillaWhiplash
Mon May 22, 2023 4:59 pm
Forum: Investing - Theory, News & General
Topic: Why not Nasdaq and Dow?
Replies: 52
Views: 6749

Why not Nasdaq and Dow?

So if you look at performance of the major indexes, it would appear that Nasdaq 100 has been superior to the S&P 500 by a large margin. The Dow 30 also beat it. Now that cheap index funds are available to hold these indexes, why would you not hold these over SP500 or TSM? Is there something inferior in the methodology of these indexes over SP500 or TSM? Are they not diversified enough?
by ChinchillaWhiplash
Thu May 18, 2023 10:30 am
Forum: Investing - Theory, News & General
Topic: Is it better to consistently invest X amount every paycheck, or save the money and only invest during red days?
Replies: 34
Views: 3018

Re: Is it better to consistently invest X amount every paycheck, or save the money and only invest during red days?

If you have multiple funds representing multiple asset classes, just invest your dollars into whichever fund is down the most or up the least. Seems like the best way to get the most out of your investments and you don’t sit on the sidelines waiting to put your money to work.
by ChinchillaWhiplash
Wed May 17, 2023 4:15 pm
Forum: Investing - Theory, News & General
Topic: China = Emerging Market?
Replies: 14
Views: 1699

Re: China = Emerging Market?

Was just curious as to what the criteria is. Personally don’t hold China directly although one could argue that ANYONE holding US or Developed International already have a large stake in China considering how entrenched manufacturing is with China. That is a whole other can of worms though.
by ChinchillaWhiplash
Mon May 15, 2023 10:36 pm
Forum: Investing - Theory, News & General
Topic: China = Emerging Market?
Replies: 14
Views: 1699

China = Emerging Market?

Why is China considered an Emerging Market? Its GDP ranks #1 with the US 2nd. How/why are they not considered Developed Market? https://www.worldeconomics.com/Rankings ... -Size.aspx

China also has 3rd & 4th largest stock exchanges. https://www.statista.com/statistics/270 ... ng-volume/
by ChinchillaWhiplash
Mon May 08, 2023 8:09 am
Forum: Investing - Theory, News & General
Topic: How do most 401k plans work
Replies: 16
Views: 1814

Re: How do most 401k plans work

Our small company uses a fee only FA for our 401k profit sharing plan. He put together a few portfolios based on risk tolerance. All of the portfolios are low cost Vanguard funds. We also have the option for self managed with all Vanguard index funds and a few DFA factor funds. His fee is $500 a month. This fee is billed to our company and NOT taken out of holdings. We have a separate Third Party Administrator that designed the plan and keeps things compliant for ERISA stuff. There is a yearly fee for this. Also a record keeper who purchases the funds each month and provides necessary services for compliance. Yearly fee for this as well. 1% AUM is shooting yourself in the foot. I would guess that they sell off funds to cover this fee too. I...
by ChinchillaWhiplash
Sun May 07, 2023 10:53 am
Forum: Investing - Theory, News & General
Topic: No Love for VT/VTWAX?
Replies: 49
Views: 6440

Re: No Love for VT/VTWAX?

Another related question. Why doesn’t Vanguard use it for the equity portion of their TDFs?
by ChinchillaWhiplash
Sun May 07, 2023 8:46 am
Forum: Investing - Theory, News & General
Topic: No Love for VT/VTWAX?
Replies: 49
Views: 6440

No Love for VT/VTWAX?

So with all the International vs. US posts and the constant debate on which is better, it seems as if VT would be the best solution. These funds do not seem to be mentioned in those posts very often. Why wouldn’t one of these make the most sense to hold? They would eliminate the whole question of should I allocate to this, how much should I allocate, etc. Also would eliminate recency bias from the equation. What’s not to love in a one do it all at a low cost fund? Other than TLH, what are the cons of holding this as your only equity fund? Are there any other similar funds that could be used to TLH?
by ChinchillaWhiplash
Sat May 06, 2023 10:29 am
Forum: Investing - Theory, News & General
Topic: 401K removed all low cost funds
Replies: 7
Views: 1284

Re: 401K removed all low cost funds

Sounds like they are neglecting fiduciary responsibilities. Might want to report them to the proper agency. https://www.dol.gov/general/topic/retir ... uciaryresp
by ChinchillaWhiplash
Thu May 04, 2023 7:49 am
Forum: Investing - Theory, News & General
Topic: Small Cap vs Large Cap (cherry picked timeframe)
Replies: 145
Views: 7909

Re: Small Cap vs Large Cap (cherry picked timeframe)

I’m just curious as to WHY the SC did better. Will have to listen to the Bogle speech. If SC has historically done better than LC, why not just hold Small and Mid cap? You can do this at a low cost with index funds. If you are in it for the long haul it seems as if you will have overall better returns. I see no reason to dismiss this. Paul Merriman's take on Why not put all of your investments in small cap value? Here's another of his articles: When it pays to go all-in on small-cap value There are long stretches when an asset class like small cap or small cap value can underperform the broad market. Most don't have the tolerance or patience for these long periods of underperformance and give up before they get their risk premium: https://...
by ChinchillaWhiplash
Wed May 03, 2023 8:04 am
Forum: Investing - Theory, News & General
Topic: Small Cap vs Large Cap (cherry picked timeframe)
Replies: 145
Views: 7909

Re: Small Cap vs Large Cap (cherry picked timeframe)

I’m just curious as to WHY the SC did better. Will have to listen to the Bogle speech. If SC has historically done better than LC, why not just hold Small and Mid cap? You can do this at a low cost with index funds. If you are in it for the long haul it seems as if you will have overall better returns. I see no reason to dismiss this.
by ChinchillaWhiplash
Wed May 03, 2023 7:58 am
Forum: Investing - Theory, News & General
Topic: Small Cap vs Large Cap (cherry picked timeframe)
Replies: 145
Views: 7909

Re: Small Cap vs Large Cap (cherry picked timeframe)

Seems to hold true with international as well. Not able to break it down as much as US unfortunately, but still seems to hold true. https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1972&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&portfolioNames=false&portfolioName1=Portfolio+1&a...
by ChinchillaWhiplash
Wed May 03, 2023 7:54 am
Forum: Investing - Theory, News & General
Topic: Small Cap vs Large Cap (cherry picked timeframe)
Replies: 145
Views: 7909

Re: Small Cap vs Large Cap (cherry picked timeframe)

Did a general backtest for SC, SCV, and LC. Did the BT for a specific time period starting in 1999 to now. Just curious as to what specifically made the size matter so much. Based on this timeframe, smaller is better. Blend or value did much better than large blend. There were larger drawdowns for small. More volatility for small. Seems like small falls harder but bounces back up higher. Higher enough to keep it on top. Kind of surprising. https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1999&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjuste...
by ChinchillaWhiplash
Tue May 02, 2023 9:08 pm
Forum: Investing - Theory, News & General
Topic: Small Cap vs Large Cap (cherry picked timeframe)
Replies: 145
Views: 7909

Small Cap vs Large Cap (cherry picked timeframe)

Did a general backtest for SC, SCV, and LC. Did the BT for a specific time period starting in 1999 to now. Just curious as to what specifically made the size matter so much. Based on this timeframe, smaller is better. Blend or value did much better than large blend. There were larger drawdowns for small. More volatility for small. Seems like small falls harder but bounces back up higher. Higher enough to keep it on top. Kind of surprising. https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&mode=1&timePeriod=4&startYear=1999&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted...
by ChinchillaWhiplash
Sat Apr 29, 2023 9:46 am
Forum: Investing - Theory, News & General
Topic: Why not HY bond fund as a diversifier?
Replies: 8
Views: 830

Re: Why not HY bond fund as a diversifier?

Yeah, this fund is leveraged, complex and trading at a premium. Just pulled this out as an example for PV since it goes back a way. Would be nice to have some sort of “index” version at a low ER. Not looking at this as a stable replacement for bonds so know that it will more closely follow equities than an intermediate bond fund. It does have equity like performance and is more likely to zig when equities zag. Just trying to think out side of the box. Lots of new ETF products out there. Who knows, one day could be something out there that will be a good way to potentially increase returns AND add diversity at a low price. Like to keep my eyes open at all times.
by ChinchillaWhiplash
Fri Apr 28, 2023 10:07 pm
Forum: Investing - Theory, News & General
Topic: Why not HY bond fund as a diversifier?
Replies: 8
Views: 830

Why not HY bond fund as a diversifier?

So most everyone on here says to keep your risk on the equity side, but…. I took a look at a backtest with a global high yield bond fund. Seems like it would add something to a portfolio as a diversifier. It can add better returns and has a fairly low correlation to US equities. Here is an example: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&deb...
by ChinchillaWhiplash
Fri Apr 28, 2023 12:43 pm
Forum: Investing - Theory, News & General
Topic: TLH on withdrawals from taxable
Replies: 4
Views: 500

Re: TLH on withdrawals from taxable

rkhusky wrote: Thu Apr 27, 2023 8:53 pm
ChinchillaWhiplash wrote: Thu Apr 27, 2023 5:24 pm Sell the lots with a loss. Even if you create a wash sale the losses will be added onto the unsold shares. This will increase your cost basis so would reduce the cap gains if you sell the remaining shares later (assuming you don’t create another wash sale). Or it could increase your loss at a later date that could be claimed on your taxes.
The cost basis adjustment only holds for wash sale purchases in a taxable account. If replacement shares are purchased in a tax-advantaged account, the loss is permanently disallowed.
Good point. Thanks for adding that clarification :sharebeer
by ChinchillaWhiplash
Thu Apr 27, 2023 5:24 pm
Forum: Investing - Theory, News & General
Topic: TLH on withdrawals from taxable
Replies: 4
Views: 500

Re: TLH on withdrawals from taxable

Sell the lots with a loss. Even if you create a wash sale the losses will be added onto the unsold shares. This will increase your cost basis so would reduce the cap gains if you sell the remaining shares later (assuming you don’t create another wash sale). Or it could increase your loss at a later date that could be claimed on your taxes.
by ChinchillaWhiplash
Tue Apr 18, 2023 10:44 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 14343
Views: 1970849

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Is there a new risk with the debt ceiling? A lot of UPRO holdings consist of treasuries. If you hold TQQQ it’s even higher. If there is a default, what happens to these funds?
by ChinchillaWhiplash
Sun Apr 09, 2023 10:42 pm
Forum: Investing - Theory, News & General
Topic: Dividend pay dates Schwab vs TDA
Replies: 5
Views: 553

Re: Dividend pay dates Schwab vs TDA

nalor511 wrote: Sun Apr 09, 2023 10:04 pm Schwab is known to sit on your funds for an extra day, picking up that day's interest for whatever short term investments they have it. If they do it for everyone (they do), it adds up.
Probably explains it.
by ChinchillaWhiplash
Sun Apr 09, 2023 10:41 pm
Forum: Investing - Theory, News & General
Topic: Dividend pay dates Schwab vs TDA
Replies: 5
Views: 553

Re: Dividend pay dates Schwab vs TDA

Lyrrad wrote: Sun Apr 09, 2023 10:35 pm I wonder if the stock market being closed on Friday had anything to do with it. Are other dividend pay dates affected in your account?
Seems like it has probably been basically a day later than TDA most of the time. TDA has funds show up in morning of pay date and Schwab shows up on the same date but after market close if I remember correctly. Sometimes it is the next day when it shows up. Haven’t paid close attention until now, but do recall the delay.
by ChinchillaWhiplash
Sun Apr 09, 2023 9:43 pm
Forum: Investing - Theory, News & General
Topic: Dividend pay dates Schwab vs TDA
Replies: 5
Views: 553

Dividend pay dates Schwab vs TDA

TDA is switching over to Schwab soon. Have a fund in both Schwab and TDA accounts. Dividend pay date was 4/7. Dividend showed up as available for trade on 4/7 in the TDA account. Not showing up at all in the Schwab account. Why does Schwab take longer? Guessing both accounts will take longer once TDA switches over. Hoping Schwab might use some of the good features offered by the TDA platform, but we shall see in about 40 days. Just checked the history in the TDA account and it shows dividend being paid 4/10. It is not available for withdrawal. They must just credit it for trade. TDA is taxable and Schwab account is IRA. Not sure if that makes a difference or not.
by ChinchillaWhiplash
Sun Apr 09, 2023 10:23 am
Forum: Investing - Theory, News & General
Topic: Market risk of bond funds
Replies: 28
Views: 2797

Re: Market risk of bond funds

Call_Me_Op wrote: Sun Apr 09, 2023 10:16 am I think you are conflating risks. US treasuries are assumed to have no credit risk. All of the risk is duration risk - which is part and parcel of what you are calling market risk. In other words, the participants who comprise the markets are setting the market price, which corresponds directly to the interest rate.
Debt ceiling? If no agreement is made on borrowing and US defaults on interest payments credit rating will go way down. Not sure if I would say treasuries are risk free until things get resolved. Never happened before but who knows. Definitely could happen.
by ChinchillaWhiplash
Sun Apr 09, 2023 10:17 am
Forum: Investing - Theory, News & General
Topic: Worldwide version of NTSX on the way [RSSB new global return stacking ETF]
Replies: 59
Views: 9871

RSSB new global return stacking ETF

[Thread merged into here --admin LadyGeek]

Anybody know anything about this new fund? Think it is similar to NTSX but global equity holdings instead of SP500 mimicking. You could hold this fund which simulates 90/60 global equities/bonds and use alternative holdings or tilts for a portion of your AA. Interesting way of using leverage but sounds like the ER is going to be a bit on the high side. Here is a link to their site and a review of the fund. https://www.returnstackedetfs.com/ https://www.optimizedportfolio.com/rssb/
by ChinchillaWhiplash
Sat Apr 08, 2023 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Is it time for a new accountant?
Replies: 13
Views: 1655

Re: Is it time for a new accountant?

CPA does also prepare the K1s. Ran #s through a tax calculator and we did under pay. Had to base this off of a draft K1 that was used to determine 401 employer contributions for 2022. Adding safeharbor amount brings the numbers close to what the account came up with. All looks to be in order. I just need to keep close watch over the numbers so there won’t be any more unexpected surprises.
by ChinchillaWhiplash
Sat Apr 08, 2023 12:22 pm
Forum: Investing - Theory, News & General
Topic: Already Priced In (How far out?)
Replies: 20
Views: 2429

Re: Already Priced In (How far out?)

I would guess that when there is a lot of market volatility the time horizon for forecasts has shortened considerably. More uncertainty = volatility?
by ChinchillaWhiplash
Sat Apr 08, 2023 8:29 am
Forum: Personal Finance (Not Investing)
Topic: Is it time for a new accountant?
Replies: 13
Views: 1655

Re: Is it time for a new accountant?

K1 income as partner in LLC. CPA calculates quarterly estimated tax payments. 2022 tax shortfall = 24%. Get email from CPA about this last night. Results in wiping out most of surplus cash because was not planning on taking a huge hit like this. They underestimated in 2021 also so thought they would have adjusted for this in 2022. What is an acceptable amount of under estimate? Had a different CPA for 2020 and also had an even larger shortfall so was hit with a huge end of year bill. I could try and estimate myself but it is difficult with continuously variable income. Would it be better to make monthly payments vs quarterly? A positive is that you held your cash, rather than the government holding it. For 2023 adjust the quarterly payment...
by ChinchillaWhiplash
Sat Apr 08, 2023 7:36 am
Forum: Personal Finance (Not Investing)
Topic: Is it time for a new accountant?
Replies: 13
Views: 1655

Is it time for a new accountant?

K1 income as partner in LLC. CPA calculates quarterly estimated tax payments. 2022 tax shortfall = 24%. Get email from CPA about this last night. Results in wiping out most of surplus cash because was not planning on taking a huge hit like this. They underestimated in 2021 also so thought they would have adjusted for this in 2022. What is an acceptable amount of under estimate? Had a different CPA for 2020 and also had an even larger shortfall so was hit with a huge end of year bill. I could try and estimate myself but it is difficult with continuously variable income. Would it be better to make monthly payments vs quarterly?
by ChinchillaWhiplash
Fri Apr 07, 2023 5:54 pm
Forum: Investing - Theory, News & General
Topic: Already Priced In (How far out?)
Replies: 20
Views: 2429

Already Priced In (How far out?)

I know what is meant by saying something is “already priced in”. But is there a consensus on how far out things are priced in? It’s all based on future earnings. Would this generally be for the next 4 quarters? The farther you look out the more likely you will be wrong about future earnings. I hear this phrase a lot but have never heard any specifics about this statement. Wasn’t sure if there were any specifics or if it is just a generalization. Can someone shed some light on this?
by ChinchillaWhiplash
Thu Apr 06, 2023 10:08 pm
Forum: Investing - Theory, News & General
Topic: OverBalancing
Replies: 5
Views: 934

Re: OverBalancing

Overbalanced to International, mid and small cap, and value. Size and value tilt for both US and International.
by ChinchillaWhiplash
Thu Apr 06, 2023 4:23 pm
Forum: Investing - Theory, News & General
Topic: income generating portfolio
Replies: 42
Views: 4409

Re: income generating portfolio

One way to look at a dividend is that your are putting capital to work for you. As a share holder and part owner you are getting a portion of the company’s profits to use as you see fit. You can buy more shares of the company that paid you, you could buy something else entirely, or you can just spend it on whatever. Seems like a good way to maximise a dividend’s use is to buy a fund that is down the most in a tax sheltered account. That is how I like to use them. Might be better than no dividends being paid out of the extra money is used for CEO compensation or something else which would be undesirable.
by ChinchillaWhiplash
Sat Apr 01, 2023 6:00 pm
Forum: Investing - Theory, News & General
Topic: Savings - Investment FDIC covered and + 7% APY. How?
Replies: 11
Views: 2055

Savings - Investment FDIC covered and + 7% APY. How?

Save banking investment products promise some large APY and FDIC protection. They are investment portfolios made up of ETFs which include short positions. Activity managed portfolios. Seems too good to be true and probably is. Just wondering how they are able to do this and still be covered by FDIC? Anybody able to figure this out? Here is a link: https://joinsave.com/banking
Link to hypothetical back test with holdings of their growth fund: https://joinsave.com/hb-multi-strategy-portfolio
by ChinchillaWhiplash
Fri Mar 31, 2023 8:08 pm
Forum: Investing - Theory, News & General
Topic: Investing in Japan from 1991 to Today
Replies: 70
Views: 9876

Re: Investing in Japan from 1991 to Today

VT would cover everything based on market cap. It is the best way to capture all market asset classes that self adjusts to whatever the flavour of the day is.
by ChinchillaWhiplash
Thu Mar 30, 2023 11:27 pm
Forum: Investing - Theory, News & General
Topic: Two interpretations of EMH
Replies: 28
Views: 1714

Re: Two interpretations of EMH

Does this article change people’s belief in EMH? Especially when a lot of the buybacks were funded with debt? This is just talking about companies in the S&P500. How much of the total market has been altered in such a way? https://hbr.org/2020/01/why-stock-buyba ... he-economy How is pricing anywhere near an accurate representation of a company’s value for companies that have practiced such things? It might be efficient for the companies that haven’t artificially inflated themselves. Any index screening for such things?
by ChinchillaWhiplash
Fri Mar 24, 2023 12:31 pm
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Re: Why not follow Buffett’s mantra?

One other point I would like to make on my decision to sector tilt into financials. When all of the news is pointing at a problem and the sector drops precipitously, who do you think is buying? I would guess that most of the selling is being done by all the scared retail investors. Those are the people who watch and listen to all the talking heads and panic sell. Institutions probably love this and scoop it all up. I still stand by my decision to buy this sector fund and I have been. I’m not talking about buying a few individual stocks. It is index based and holds a large amount of companies. The fund I purchased specifically holds 397 company’s stocks. It is diversified within that sector.
by ChinchillaWhiplash
Thu Mar 23, 2023 11:38 pm
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Re: Why not follow Buffet’s mantra?

Forget about the Buffet mantra. Follow the "chicken mantra" which means that the closest thing to a free lunch is diversification, and don't put all of your eggs in one basket. You never want to make a concentration bet on one sector of the economy. Unfortunately if you just hold TSM for US you ARE concentrated. I’ll say it again, that VTI’s top 10 holdings out of 3948 different stocks makes up 21.28% of the entire portfolio. 25.83% of the entire portfolio is information technology. 17.71% of tech holdings in the entire portfolio are in the top 10 holdings. If you throw in BRK it goes up since I’m pretty sure they also hold Apple. If you own the whole haystack you are still sector tilted. Why is it OK to tilt to a sector if that ...
by ChinchillaWhiplash
Thu Mar 23, 2023 12:52 pm
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Re: Why not follow Buffet’s mantra?

DesertDiva wrote: Thu Mar 23, 2023 10:57 am VSTAX already has ~14% in the financial sector, and the equivalent Fidelity fund has slightly less.

I am comfortable with that percentage in my portfolio. Loading up on a certain sector doesn’t align with my desire for a diversified portfolio.
Hate to break it to you but VTI’s top 10 holdings make up > 20% of the fund. Is heavily tilted wether you want it to be or not. And that is to the tech sector.
by ChinchillaWhiplash
Thu Mar 23, 2023 8:19 am
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Re: Why not follow Buffet’s mantra?

Well, I put several $k into FNCL. It’s only about 3% of whole portfolio. Probably not enough to really move the needle overall, but if it jumps up I won’t be disappointed. Like I said before, all proceeds will go back into the asset class funds. Might miss out on a tiny portion of overall market gains or might not. We shall see :beer
by ChinchillaWhiplash
Wed Mar 22, 2023 10:36 pm
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Re: Why not follow Buffet’s mantra?

Looks like YTD for US financials has dropped about 15% from its high. I would guess that some panic sold with the SVB failure. Yeah, probably not an epic drop, but probably a decent discount. Retail investors seem to react quickly to bad news. I’m cheap and like to find good deals. Figure the banking sector as a whole is worth holding. I would consider any position held in a sector like a house flip where you take a chance on something that seems to be priced right and you unload it when it hits your numbers. Just don’t have to invest in it to fix it up like a house. Just sit on it and wait. Holding it doesn’t seem too bad either since I don’t think all banks are going to be wiped out. If they are then every investor is doomed anyway. Proba...
by ChinchillaWhiplash
Wed Mar 22, 2023 5:13 pm
Forum: Investing - Theory, News & General
Topic: Why not follow Buffett’s mantra?
Replies: 134
Views: 13431

Why not follow Buffett’s mantra?

“Buy when others are fearful”. Does it make sense to back up the truck to sector funds such as financials? Seems like a good time to get a huge discount. You might have to sit on it until it rebounds but you would do that with any holding. What would having 10-15% of portfolio in this matter as far as the downside. Could go down more. If it does just DCA into it. Is this any worse or riskier than holding something such as a REIT fund at these percentages?