Search found 1978 matches

by vineviz
Mon Nov 12, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 101
Views: 11131

Re: Diversification Regret

I am aware of this argument, that Market is concentrated in single factor risk, beta, and that there are optimal methods to diversify away from that risk. I have made a decision to reject that premise, even while invested in SCV and other asset classes. I do not think there is any way of getting ar...
by vineviz
Mon Nov 12, 2018 3:23 pm
Forum: Investing - Theory, News & General
Topic: Is Small Value Still A Winner?
Replies: 88
Views: 6411

Re: Is Small Value Still A Winner?

If you don't go overboard, what is the point? If you get 3% out performance on 10% of your portfolio, it really doesn't move the needle much. Seems like if you believe in SV going 30% or so is the only way to go. And yes now is probably a better time to to SV when we have had a decade or so where t...
by vineviz
Mon Nov 12, 2018 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Short Bond Funds or Tips Funds or Bond Ladder
Replies: 6
Views: 581

Re: Short Bond Funds or Tips Funds or Bond Ladder

About the finances, I understand your suggestions but have been warned about TIPS mutual funds not holding their value in times of crisis have you experience with this charge and would appreciate your comments As with most advice, the real answer is "it depends". In this case it depends on the type...
by vineviz
Mon Nov 12, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: The Perfect Portfolio for You
Replies: 23
Views: 3371

Re: The Perfect Portfolio for You

@Rick Ferri Not sure if you will get around to answering this or not, but I hope you do. I'm aware of the yield trap - looking for high yielding products at the expense of total return. But with your topic being a "strategy has to keep you invested during good times and bad" and the psychology that...
by vineviz
Mon Nov 12, 2018 11:15 am
Forum: Investing - Theory, News & General
Topic: Diversification Regret
Replies: 101
Views: 11131

Re: Diversification Regret

My point is that theoretically there is no basis to state I am more diversified than the Market with my active decision to overweight assets that are in fact represented in the Market portfolio. There are no academic studies that proves this is in fact more efficient, and in fact there are studies ...
by vineviz
Mon Nov 12, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from

If you are defining "concentrating" as holding fewer stocks than the maximum number available then, yes, I'll concede that a diversified portfolio could be more concentrated than an undiversified portfolio. It's weird typing that sentence, but that's the result of using such a perverse (IMO) defini...
by vineviz
Sun Nov 11, 2018 8:46 pm
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

thanks... I noticed that VTMSX has assets of only 7 billion vs 96 billion for VSMAX. Any reason for that? Also, VTMSX tracks 597 stocks vs 1412 stocks for VSMAX. Does this give both funds a fairly equivalent risk profile? VSMAX is Vanguard’s oldest index fund, and was founded in 1960: before there ...
by vineviz
Sun Nov 11, 2018 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: At what point does a life insurance policy not make sense?
Replies: 11
Views: 1122

Re: At what point does a life insurance policy not make sense?

I've read that you should have $1M 20 year life insurance policy. At what point does it not make sense to have a life insurance policy? If your net worth is >$1M (not that mine is), does it not make sense? What about an AD&D (Accidental death and dismemberment insurance)? I don't have a risky job, ...
by vineviz
Sun Nov 11, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

Good luck with your investments in international bonds, oil futures, Russian real estate, and bitcoin. In the interest of pure diversification, of course. :beer Embrace it. If that caricature is what people think diversification means, I'm not surprised that some people have a hard time pushing pas...
by vineviz
Sun Nov 11, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Short Bond Funds or Tips Funds or Bond Ladder
Replies: 6
Views: 581

Re: Short Bond Funds or Tips Funds or Bond Ladder

might need to have cash available for an extended period-2 o 3 years-to meet an anticipated emergency If you have a good idea of WHEN the emergency might strike, and it's in the next couple of years, I'd probably just buy a single CD or TIPS that matures right before that date. If the date of the e...
by vineviz
Sun Nov 11, 2018 5:58 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

With that being said, young investors seeing both sides of the debate will make a choice. In my opinion, if a young investor decides to go U.S. only, it's not a good choice. I am going to guess young investors are picking international indexes. Times are changing. Indeed, a study by researchers at ...
by vineviz
Sun Nov 11, 2018 5:45 pm
Forum: Investing - Theory, News & General
Topic: Factor Momentum (a new toy/target?)
Replies: 8
Views: 687

Re: Factor Momentum (a new toy/target?)

You’re right. They rebalance quarterly for factor exposure back to equal weight modified by factor momentum and factor expense. Also not quite what you're looking for, but the Oppenheimer Multi-Factor ETFs (OMFL and OMFS) also employ a dynamic factor exposure. https://ofi-digitalmedia-accentassets-...
by vineviz
Sun Nov 11, 2018 5:34 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

fortyofforty wrote:
Sun Nov 11, 2018 4:58 pm
Absolutely debunked. And handily, I might add. No contest.
If that's what you think, then more power to you and good luck with your investing.

As far as I can see, most open-minded and well-educated investors can see through the xenophobic rhetoric and embrace the principles of diversification.
by vineviz
Sun Nov 11, 2018 4:38 pm
Forum: Investing - Help with Personal Investments
Topic: Help me make a fund recommendation for a family trust
Replies: 9
Views: 777

Re: Help me make a fund recommendation for a family trust

You can see a list of holdings in the previous thread here . I'm not at liberty to share each holding's weight in the portfolio at this time. I know that makes it hard to analyze the portfolio, but even with all the info it's a mountain of work trying to sort out what sectors the money is invested ...
by vineviz
Sun Nov 11, 2018 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

One more question about VSMAX (VG Small Cap Fund) - so I am considering getting into this one to complement my S&P500 Fund (VFIAX). This would be in taxable. However, I see the fund has a 15% turnover and the yield is 1.6%. The yield is a bit lower than VFIAX which is fine however I am more concern...
by vineviz
Sun Nov 11, 2018 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: Help me make a fund recommendation for a family trust
Replies: 9
Views: 777

Re: Help me make a fund recommendation for a family trust

The trust is held by a brokerage firm that charges about 1.5% commission on trades. The entire trust is invested in a collection of about 60 high-dividend mutual funds, UITs, and other similar vehicles. The average expense ratio of these funds is over 2%. I'd love to weigh in, but one of the import...
by vineviz
Sun Nov 11, 2018 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Short Bond Funds or Tips Funds or Bond Ladder
Replies: 6
Views: 581

Re: Short Bond Funds or Tips Funds or Bond Ladder

I need to have readily available investments available many suggest a Bond Ladder for this purpose Can you expand a little on what you mean by "readily available investments available"? In particular, do you mean you need to regularly withdraw money from the portfolio or do you mean that you MIGHT ...
by vineviz
Sun Nov 11, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Bond prices vs yields
Replies: 16
Views: 1084

Re: Bond prices vs yields

So the risk of a bond depends on the match between your bond maturity and your consumption (i.e. when you need the money). If you perfectly match your bond maturities with your consumption needs, then you have no additional risk after you've bought the bond. You'll get exactly what you expected to ...
by vineviz
Sun Nov 11, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from

If you only invest in stocks that are small, value, high momentum, high quality, and low volatility, this is not investing in just a single factor, but multi-factors. Wow. Find me THAT fund. Suppose there are 5 factors that split their attribute in half, then by only investing in one half of the ch...
by vineviz
Sun Nov 11, 2018 10:34 am
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

Brokeragelink allows ETFs didnt want this thread to drift to that discussion & take the thread off course....w/ DCA in tax deferred have been told multiple times it cannot, as stated going to call again Monday & reinquire. Guessing it has something to do w/ the auto-investing when money comes in- e...
by vineviz
Sun Nov 11, 2018 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

2) At VG, what is the difference between these 2? one has a higher ER. Would either do? Vanguard Small-Cap Value ETF (VBR) ER 0.07% Vanguard S&P Small-Cap 600 Value ETF (VIOV) ER 0.20% Now am also seeing VTWV - Vanguard Russell 2000 Value ETF ER 0.20% :confused Most investors (probably the vast maj...
by vineviz
Sun Nov 11, 2018 9:46 am
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

Thanks. At Fidelity (talking tax deferred ) not sure I can use ETFs, may be limited to only funds in Brokeragelink (was told that by a rep, more then 1x if I recall, plan to call and ask again). Does IJS have a fund equivalent at Fidelity? thanks. HEDGEFUNDIE is correct. Brokeragelink allows ETFs A...
by vineviz
Sat Nov 10, 2018 10:59 pm
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

Question: People tend to love the idea of adding “small cap value” to their portfolio. For those that espouse to more of a mid-cap tilt vs small, do they go for mid-cap blend, growth, or value similar to small cap fans? I am strongly considering going 50/50 tsm and mid cap in both my kids 529s. I’m...
by vineviz
Sat Nov 10, 2018 10:34 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

fortyofforty wrote:
Sat Nov 10, 2018 10:32 pm
vineviz wrote:
Sat Nov 10, 2018 10:24 pm
The cost of omitting international equity diversification altogether are already well discussed and documented.
And disputed and debunked, here and elsewhere.
Disputed? No doubt.

Debunked? Hardly.
by vineviz
Sat Nov 10, 2018 10:24 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

The only "cost" of avoiding international equities is the possibility of outperformance in the future, which is unknowable. I was specifically speaking about the cost of currency hedging, which can be avoided by using an unhedged equity index fund. The cost of omitting international equity diversif...
by vineviz
Sat Nov 10, 2018 10:22 pm
Forum: Investing - Help with Personal Investments
Topic: Mid and Small Caps?
Replies: 38
Views: 3026

Re: Mid and Small Caps?

2 questions. 1) What small cap value index funds are suggested for Fidelity accounts? I see a small cap index , but its not specifically a 'value' fund. All their 'small cap VALUE' funds have an ER significantly higher the the small cap index fund. - 2) At VG, what is the difference between these 2...
by vineviz
Sat Nov 10, 2018 8:07 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

Going 100% domestic EXPOSES you to uncompensated currency risk (that of your home currency). Currency exposure of int’l investments would not be called a risk if it could not go both ways— we would call it a liability. By definition a risk is a possible problem not a guaranteed one. If your expense...
by vineviz
Sat Nov 10, 2018 6:29 pm
Forum: Personal Consumer Issues
Topic: International Travel during Maternity/Paternity
Replies: 70
Views: 2510

Re: International Travel during Maternity/Paternity

We never travelled internationally with our children at that age but did frequently travel domestically. Generally it was a good experience, but it’s been several years. Travel gets harder as the baby gets older, so this seems like a good time to bond. Just don’t underestimate how tired you will be...
by vineviz
Sat Nov 10, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: 18 topics badly explained by many Finance Professors
Replies: 15
Views: 2808

Re: 18 topics badly explained by many Finance Professors

Thank you for sharing. The article's points are poorly explained (the author must be a finance professor!), but there are a few basic truths in there that are worth repeating... I agree in large part: I’m not sure what the market is like for a paper like this. Feels more like a pet project than som...
by vineviz
Sat Nov 10, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: The Perfect Portfolio for You
Replies: 23
Views: 3371

Re: The Perfect Portfolio for You

I never have to figure out "when to sell shares". Our rebalancing rules dictate when shares need to be sold. I agree heartily that the perfect portfolio is the one you are most likely able to stick with. I got considerable opposition (kindly phrased for the most part) from Bogleheads when I posted ...
by vineviz
Sat Nov 10, 2018 2:28 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

You may not agree with Jack, but is arguments are not "illogical." If you read his 26 page chapter "On Global Investing" in his book, Common Sense on Mutual Funds, you will learn that his arguments are very logical. There is nothing about "emotions or patriotism" as someone wrote. Jack Bogle is ric...
by vineviz
Sat Nov 10, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

Bogle isn't just saying "Past performance will repeat itself in the future" or "You're American, so you should buy American stocks." He might not be JUST saying those things, but those two statements are the crux of his argument and the two main lines of defense mounted by his supporters on this to...
by vineviz
Sat Nov 10, 2018 2:03 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

Bogle isn't just saying "Past performance will repeat itself in the future" or "You're American, so you should buy American stocks." He might not be JUST saying those things, but those two statements are the crux of his argument and the two main lines of defense mounted by his supporters on this to...
by vineviz
Sat Nov 10, 2018 2:00 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

You may not agree with Jack, but is arguments are not "illogical." If you read his 26 page chapter "On Global Investing" in his book, Common Sense on Mutual Funds, you will learn that his arguments are very logical. There is nothing about "emotions or patriotism" as someone wrote. Jack Bogle is ric...
by vineviz
Sat Nov 10, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: 18 topics badly explained by many Finance Professors
Replies: 15
Views: 2808

Re: 18 topics badly explained by many Finance Professors

Many interesting points, but he’a got some things wrong or poorly stated. For example, he says volatility is not a measure of risk—he likes volatility! That can be true for many investors for most of their lives, but volatility absolutely is a source of risk once somebody has to actually live on th...
by vineviz
Sat Nov 10, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

He consistently makes such arguments, it's true, but only a subset of investors find them compelling thankfully. And I assume these people invest based on authority(Jack) and their strong emotions on patriotism and non-rational thinking. If international kicks up in the future, you won't see these ...
by vineviz
Sat Nov 10, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: 18 topics badly explained by many Finance Professors
Replies: 15
Views: 2808

Re: 18 topics badly explained by many Finance Professors

So does item #1 mean that cap weighted index funds are rubbish? If so I have done well with rubbish. Thankfully that’s not, I’m sure, what he means. He doesn’t elaborate, but I suspect he’s referring to the fact that the market portfolio is not optimal for ALL investors and/or has no special proper...
by vineviz
Sat Nov 10, 2018 11:14 am
Forum: Personal Consumer Issues
Topic: International Travel during Maternity/Paternity
Replies: 70
Views: 2510

Re: International Travel during Maternity/Paternity

We never travelled internationally with our children at that age but did frequently travel domestically. Generally it was a good experience, but it’s been several years. Travel gets harder as the baby gets older, so this seems like a good time to bond. Just don’t underestimate how tired you will be....
by vineviz
Sat Nov 10, 2018 11:01 am
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 333
Views: 72283

Re: How much international stock? A suggestion.

Jack Bogle consistently makes compelling arguments for NOT investing in ex-US, as a US investor: He consistently makes such arguments, it's true, but only a subset of investors find them compelling thankfully. And I assume these people invest based on authority(Jack) and their strong emotions on pa...
by vineviz
Sat Nov 10, 2018 10:58 am
Forum: Investing - Theory, News & General
Topic: 18 topics badly explained by many Finance Professors
Replies: 15
Views: 2808

18 topics badly explained by many Finance Professors

Some of you might enjoy this short paper, 18 topics badly explained by many Finance Professors , by Pablo Fernandez. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3270268 Not all the topics are investment related, but many are and some of the citations are interesting as well. The papers’s bre...
by vineviz
Sat Nov 10, 2018 9:38 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from

Your position is that since value has additional risk, that concentrating your holdings in equities with that characteristic will diversify your portfolio. My position is that holding stocks that both have and don't have that characteristic is more diversified. The phrase "concentrating your holdin...
by vineviz
Sat Nov 10, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

I will note that the Bloomberg article actually doesn't criticize QMHIX, but I was thinking of another article that did. The OP did post this however: "Not mentioned in the article, but they have a Managed Futures fund, god knows how many billions. It's basically where money goes to die. Down 20% i...
by vineviz
Sat Nov 10, 2018 2:55 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

To obtain your desired value factor exposure, you necessarily AND literally ARE "concentrating your holdings". It's BOTH a true and accurate description. It remains apparent to me that this kind of characterization is not based on an accurate understanding of what diversification is or on how facto...
by vineviz
Sat Nov 10, 2018 2:06 am
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

It's really very simple. Owning a single stock gives you exposure to the greatest number of risk factors. This is not even remotely true. Factor loads measure concentration of risk, not diversification of it. High scores tell you that you have a high concentration of risk, low measurements show a d...
by vineviz
Sat Nov 10, 2018 1:24 am
Forum: Investing - Help with Personal Investments
Topic: Reverse Mortgage
Replies: 17
Views: 1815

Re: Reverse Mortgage

If they need in-home care, they may not be far from needing to move to a nursing home. The reverse mortgage will be called if neither one is living in the house. Sounds risky to me. What’s the risk? If neither parent is occupying the house, it’s going to be sold anyway. The risk is spending down eq...
by vineviz
Fri Nov 09, 2018 10:55 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

Your position is that since value has additional risk, that concentrating your holdings in equities with that characteristic will diversify your portfolio. My position is that holding stocks that both have and don't have that characteristic is more diversified. The phrase "concentrating your holdin...
by vineviz
Fri Nov 09, 2018 9:10 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

The stock market is composed of thousands of independent sources of return and risk, which often act in aggregate ways, as exposed by CAPM and the FF correlation model. And the ONLY aggregate (or net) exposure of the market portfolio is to market beta. The idiosyncratic risks of each individual sto...
by vineviz
Fri Nov 09, 2018 9:02 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

Really? Stock market return doesn't come from stock returns? Stocks don't have risk? Interesting. I'm not sure this thread is the right place for a tutorial on the basics of multi factor asset pricing models, but a total stock market fund isn't exposed to "thousands" of independent sources of risk....
by vineviz
Fri Nov 09, 2018 8:26 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

grok87 wrote:
Fri Nov 09, 2018 8:08 pm
If it is formulaic, where is the formula?
Do you mean that literally?

https://www.aqr.com/Insights/Datasets
by vineviz
Fri Nov 09, 2018 7:59 pm
Forum: Investing - Theory, News & General
Topic: A reminder: Stay away from AQR
Replies: 142
Views: 9686

Re: A reminder: Stay away from AQR

Really? Stock market return doesn't come from stock returns? Stocks don't have risk? Interesting. I'm not sure this thread is the right place for a tutorial on the basics of multi factor asset pricing models, but a total stock market fund isn't exposed to "thousands" of independent sources of risk....