Search found 1245 matches

by Elysium
Mon Oct 22, 2018 6:46 am
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 53
Views: 2487

Re: DFA small value... acitve management?

I agree with Gus Sauter the retired chief investment officer at Vanguard. The only true index fund is the total market portfolio. Anything else is active. He gave a great talk at the Bogleheads meeting in 2016 or 2017 about the Vanguard MCV index and went out of his way to say that it isn’t a true ...
by Elysium
Sun Oct 21, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend Growth Funds
Replies: 5
Views: 571

Re: Dividend Growth Funds

Vanguard has Dividend Appreciation Index (VDAIX/VDADX) that invests in dividend growing companies, and also Dividend Growth (VDIGX) which is closed. They are slightly less volatile than the market / 500 index, and may or may not perform better on an absolute basis, although they should do well on a ...
by Elysium
Sat Oct 20, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 53
Views: 2487

Re: DFA small value... acitve management?

I do not consider DFA funds as active managed in the traditional sense. You want to know what active management look like in Small Value funds, look at a fund like Third Avenue Small Cap Value (TASCX), this is what variance looks like. DFA funds are quant funds, you may call them passive or rule ba...
by Elysium
Sat Oct 20, 2018 9:53 am
Forum: Investing - Help with Personal Investments
Topic: “The Worst Kind of Bear Market”
Replies: 23
Views: 4346

Re: “The Worst Kind of Bear Market”

IBonds can be purchased with taxable money, and no need to pay taxes until cashed / mature. Free from state taxes. Inflation adjusted, protect against rising rates, what's the problem? limits to 10,000 per person per year, no problems build a ladder over time.
by Elysium
Sat Oct 20, 2018 8:54 am
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 53
Views: 2487

Re: DFA small value... acitve management?

I do not consider DFA funds as active managed in the traditional sense. You want to know what active management look like in Small Value funds, look at a fund like Third Avenue Small Cap Value (TASCX), this is what variance looks like. DFA funds are quant funds, you may call them passive or rule bas...
by Elysium
Fri Oct 19, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market Fund - interest rates rising!
Replies: 104
Views: 9599

Re: Total Bond Market Fund - interest rates rising!

Inflation is staying low, there is no indication of inflation picking up. In fact rising rates helps keep inflation under control by not letting economy overheat. If it picks up unexpectedly, you can always buy TIPS then, no need to buy now.
by Elysium
Thu Oct 18, 2018 11:07 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10657

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

Good summary. Bogle is certainly in the minority (among investment pros) on this topic Minority doesn't mean wrong, on the contrary it could mean he got it right, and others haven't. Buffett is a minority when it comes to stock selection skills, doesn't mean he is wrong, but instead very few others...
by Elysium
Thu Oct 18, 2018 10:03 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10657

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

To save everyone the effort of repeating all the back and forth that has happened on the prior threads I will summarize the counter arguments: 1) The future may not look like the past 2) Australia has outperformed the US historically 3) Plenty of good companies outside the US too 4) If you are okay...
by Elysium
Thu Oct 18, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Prepare For The Bear
Replies: 74
Views: 9573

Re: Larry Swedroe: Prepare For The Bear

My last comments to explain a few things Homer The problem is that you fail to recognize what I have pointed out repeatedly in many discussions over the years about even DFA funds, you cannot extrapolate from a prospectus because it is written by lawyers to preclude lawsuits and often includes many...
by Elysium
Thu Oct 18, 2018 9:27 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10657

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

To save everyone the effort of repeating all the back and forth that has happened on the prior threads I will summarize the counter arguments: 1) The future may not look like the past 2) Australia has outperformed the US historically 3) Plenty of good companies outside the US too 4) If you are okay...
by Elysium
Thu Oct 18, 2018 9:21 pm
Forum: Investing - Help with Personal Investments
Topic: US Large Value or Int'l Small for the long term
Replies: 8
Views: 615

Re: US Large Value or Int'l Small for the long term

Isn't the latest research saying Value premium is not a strong factor anymore, instead profitability is needed in order to make value premium work, and in fact if profitability is present you can ignore value factor alltogether. This is what Fama is stating at least.
by Elysium
Thu Oct 18, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: US Large Value or Int'l Small for the long term
Replies: 8
Views: 615

Re: US Large Value or Int'l Small for the long term

I would suggest neither. Just add to your US Total Market and forget it, or you could add more to US Small as well. Either way adding many components is not likely to boost your returns, increase complexity, and make it hard for you to stay the course. The last part is the most important, and one re...
by Elysium
Wed Oct 17, 2018 5:58 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Prepare For The Bear
Replies: 74
Views: 9573

Re: Larry Swedroe: Prepare For The Bear

I find it very amusing that Larry has no problem implying other posters as "foolish" "uninformed" "clueless" "nonsensical" and other such choice words, even though not directed at them but implied, but took offense at a comment from a quote from Taylor that wasn't directed at him. I know that Larry ...
by Elysium
Wed Oct 17, 2018 11:46 am
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

I've been backing up the truck a little bit since the last week's decline. So far moved some into US Large and Mid-Caps + Intl and out of Bonds + new funds available. This is only about 1/5th or so of the dry powder available, and then new funds will be coming, so still quite a bit to go if things m...
by Elysium
Wed Oct 17, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10657

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

Buy the global haystack and just forget about it, my friends. :beer Can't afford it - I need a decent return on my money, which ex-US hasn't been able to provide over the long run. US bonds have provided similar return without the crazy volatility. I have little hope that most US-only investors wil...
by Elysium
Wed Oct 17, 2018 7:35 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Prepare For The Bear
Replies: 74
Views: 9573

Re: Larry Swedroe: Prepare For The Bear

This is all sound and fury that signifies nothing. Bogleheads should ignore all market pundits including Larry who needs to fill a column every week or so, it's his job to represent his WM firm with 150+ advisors who all need to be paid. Think about it, they need to promote the idea that they bring ...
by Elysium
Tue Oct 16, 2018 11:10 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10657

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

. 04/1998 to 9/2018 (since inception of DFA Emerging Markets Value) - over the past 20+ years Annualized return/ Sharpe Ratio ..9.7% / 0.47 = DFA US Small Value ..9.2% / 0.49 = DFA International Small Value 10.1% / 0.44 = DFA Emerging Markets Value 10.1% / 0.52 = 50:37:13 DFA US Small Value:DFA Int...
by Elysium
Mon Oct 15, 2018 7:27 am
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

I would too, except for that bond component. Even Target 2065 (VLXVX) has 10% bonds. Recommending any allocation of bonds to a 20-something with 35-40+ years to retirement is a disservice. I don't agree. Everyone should have some bonds for a well-rounded portfolio. And a 10% allocation bonds is not...
by Elysium
Sun Oct 14, 2018 9:53 pm
Forum: Investing - Theory, News & General
Topic: Does international really buy you diversification?
Replies: 43
Views: 4472

Re: Does international really buy you diversification?

Once you take that out, is there really any benefit is a big question mark. At least with large cap multi-nationals choosing GM, Ford, Apple, Bank of America, Pfizer, and Exxon over Toyota, BMW, Samsung, HSBC, Roche, and Shell seems like an active stock picking play. Looking back 50 years ago I wou...
by Elysium
Sun Oct 14, 2018 9:29 pm
Forum: Investing - Theory, News & General
Topic: Better to invest in taxable and not deferred?
Replies: 31
Views: 3048

Re: Better to invest in taxable and not deferred?

OP here. Glad to see many thoughtful responses. I knew it wouldn't pass the BH stress test, and that's why I posted it since I have never found a solid reason myself. Anytime I ran this calculation in excel over the years, every time tax deferred and Roth has come out ahead. I must clarify one thing...
by Elysium
Sun Oct 14, 2018 9:08 pm
Forum: Investing - Theory, News & General
Topic: Does international really buy you diversification?
Replies: 43
Views: 4472

Re: Does international really buy you diversification?

Part of the slight international outperformance in the lost decade over US was due to weakening dollar against the euro. Since most international holdings were currency unhedged this benefited them to boost the returns. We now have a reversal with USD strengthening against euro and other currencies....
by Elysium
Sat Oct 13, 2018 10:09 pm
Forum: Personal Consumer Issues
Topic: Suit for Teenager
Replies: 18
Views: 1188

Re: Suit for Teenager

I bought a set for my son from Brooks Brothers last year. That was for no other reason except I buy my dress shirts from BB and was familiar with shopping there. It cost around $750 for the whole set including a shirt, tie, coat, pants. He has worn it a number of times since then and still fits him ...
by Elysium
Sat Oct 13, 2018 9:58 pm
Forum: Investing - Theory, News & General
Topic: Better to invest in taxable and not deferred?
Replies: 31
Views: 3048

Better to invest in taxable and not deferred?

Conventional wisdom prevailing on BH and elsewhere in financial media is you max out your tax deferred space (401(k), 403(b), TSP, etc) and then fund Roth followed by any excess in taxable accounts. Especially if your investment choices are really good then no reason not to max out tax deferred spac...
by Elysium
Sat Oct 13, 2018 5:41 pm
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

So far I can summarize the four major themes emerge: 1. Fidelity and Vanguard both offer low cost index products and both will do fine if you are a total market investor 2. Vanguard has variety in index products offerings, and if you are a slide & dicer or wish to use some of the factors, then Vang...
by Elysium
Sat Oct 13, 2018 5:30 pm
Forum: Investing - Theory, News & General
Topic: Is EMH a tautology?
Replies: 108
Views: 4640

Re: Is EMH a tautology?

The EMH is not an argument from authority. It has its own internal logic. Academics are not stupid. The fact that it has internal consistency does not make it true. The internal consistency may be useful in the academic world; papers can be published and people can get tenure thanks to it; but it d...
by Elysium
Sat Oct 13, 2018 7:45 am
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

So far I can summarize the four major themes emerge: 1. Fidelity and Vanguard both offer low cost index products and both will do fine if you are a total market investor 2. Vanguard has variety in index products offerings, and if you are a slide & dicer or wish to use some of the factors, then Vangu...
by Elysium
Sat Oct 13, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

I do not have a bias against Fidelity. But I am skeptical, why is that a problem. I used to be skeptical about DFA back in the days, but not anymore as evidence has shown they are very efficient at what they do. I do not quite trust AQR yet. It is good to have a fair amount of skepticism until prov...
by Elysium
Fri Oct 12, 2018 11:37 pm
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

Is Fidelity using indexes that are cheaper to licence compared to Vanguard? If so, do they really have innovation and customers best interest in mind in offering the best products or improving existing products as opposed to cheap marketing slogans based on expense ratio alone. Are they cutting cos...
by Elysium
Fri Oct 12, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2477

Re: [Fidelity announces simplified index fund structure]

Isn't Russell indexes considered relatively poorly constructured among the peers. I wonder why Fidelity uses this index, possibly cheaper licensing costs for them, which makes up for the lower ER marketing strategy. Once upon a time the Russells were constructed such that changes in the index were ...
by Elysium
Fri Oct 12, 2018 1:04 pm
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

What about differences in index construction, optimizations, block trading strategies, tax efficiency, securities lending, licensing, and above all experience matters, doesn't it? Vanguard has many years of expertise built into passive investing strategies so much that it is their core competency as...
by Elysium
Fri Oct 12, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5429

Does Fidelity offer the best index products for a passive investor compared to Vanguard

I had raised this difference in underlying indexes between Fidelity and Vanguard in another thread. I think it merits a broader discussion in a separate thread of it's own. I am not sure if this was addressed before on the forum, if so I request to merge the threads. Anyhow, here are some of main po...
by Elysium
Fri Oct 12, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2477

Re: [Fidelity announces simplified index fund structure]

Also, can someone explain why their Large Value index fund is trailing the Vanguard counterpart by such a large margin? CRSP index? Vanguard uses CRSP index and Fidelity uses Russell 1000 value index I figure. So in other words, there is more to returns than fractional differences in ER. If I were ...
by Elysium
Fri Oct 12, 2018 10:36 am
Forum: Investing - Theory, News & General
Topic: Morse Code Glide Path
Replies: 32
Views: 1719

Re: Morse Code Glide Path

Excellent idea. The merits of this approch isn't disucussed here often although many of us do this or started doing. I started doing this since 2015 or so when I reached critical mass regarding my retirement assets, and nearing retirement. Before that I had a static 80/20 allocation for many years d...
by Elysium
Fri Oct 12, 2018 8:27 am
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

When it’s time to back up the truck, things will look bad enough that you are not going to want to back up the truck. Best answer in the thread. I don't think there were many "back up the truck" threads on the forum in late 2008 and early 2009. Really? I mean you are saying like this thread here ht...
by Elysium
Thu Oct 11, 2018 9:20 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

When it’s time to back up the truck, things will look bad enough that you are not going to want to back up the truck. Best answer in the thread. I don't think there were many "back up the truck" threads on the forum in late 2008 and early 2009. Really? I mean you are saying like this thread here ht...
by Elysium
Thu Oct 11, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: When stocks and bonds drop at the same time, what do you do?
Replies: 40
Views: 4443

Re: When stocks and bonds drop at the same time, what do you do?

I am being told AQR has some low or negative correlation fund called QSPIX which doesn't behave the same way as stocks or bonds, but have bond like volatility with stock like returns. That should be going up now.... Oops sorry, just checked, have to take it back: http://quotes.morningstar.com/chart/...
by Elysium
Thu Oct 11, 2018 8:46 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

When it’s time to back up the truck, things will look bad enough that you are not going to want to back up the truck. Best answer in the thread. I don;t think there were many "back up the truck" threads on the forum in late 2008 and early 2009. Most of the trucks got repossessed. +1 I thought they ...
by Elysium
Thu Oct 11, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

When it’s time to back up the truck, things will look bad enough that you are not going to want to back up the truck. Best answer in the thread. I don't think there were many "back up the truck" threads on the forum in late 2008 and early 2009. Really? I mean you are saying like this thread here ht...
by Elysium
Thu Oct 11, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2477

Re: [Fidelity announces simplified index fund structure]

Thats't great. I'd like to purchase the Fidelity Dividend Appreciation Index fund to replace my Vanguard Dividend Appreciation Index fund to take advantage of their lower costs, but I can't find the ticker symbol. Can somone help me point to where this is listed? Also, can someone explain why their ...
by Elysium
Thu Oct 11, 2018 7:18 am
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

Couple of posts asking what are these cash reserves doing and case of opportunity cost. Let me put it this way as I have a different take on this. If my portfolio went up more than I expected in the last few years, which it did, then my need to take risk has reduced, therefore building up new money...
by Elysium
Wed Oct 10, 2018 10:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why Emerging Markets Matter
Replies: 82
Views: 6347

Re: Larry Swedroe: Why Emerging Markets Matter

I have about 50% of my equities in international stocks, because I wanted to be as diversified as possible and avoid a japan scenario. Of that, I'm overweight EM by 10%. I've held this asset allocation for about 10 years now, patiently waiting for the high returns that supposedly accompany their hi...
by Elysium
Wed Oct 10, 2018 9:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why Emerging Markets Matter
Replies: 82
Views: 6347

Re: Larry Swedroe: Why Emerging Markets Matter

When going through my own historic return analysis of EM, I have noticed something that hasn't been discussed before here or brought up by any of the experts. The money weighted (IRR) returns are much smaller than the time weighted returns. This means if you have been purchasing through regular cont...
by Elysium
Wed Oct 10, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

Re: When will you backup the truck on stocks

Couple of posts asking what are these cash reserves doing and case of opportunity cost. Let me put it this way as I have a different take on this. If my portfolio went up more than I expected in the last few years, which it did, then my need to take risk has reduced, therefore building up new money ...
by Elysium
Wed Oct 10, 2018 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign bonds
Replies: 14
Views: 743

Re: Foreign bonds

I hold about 5% of my portfolio in Vanguard Total Intl Bond, and my reasons for holding it is not at all related to efficient frontier or anything like that. It's purely out of fear of US treasuries blowing up and I am left with no money other than this 5% in foreign debt issued by several countrie...
by Elysium
Wed Oct 10, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: Child is HS senior: Should college fund have any equities?
Replies: 28
Views: 2276

Re: Child is HS senior: Should college fund have any equities?

Today is a reminder of why I went from equities to FDIC in my 529 for my college-aged students. This decline may not be a trend, but I am glad I locked in those gains with no risk of dipping below the requirement to fund all 4 years. It will probably go up, but I won't have regrets that I may have ...
by Elysium
Wed Oct 10, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: When will you backup the truck on stocks
Replies: 95
Views: 8284

When will you backup the truck on stocks

Today is what I call a real sell off day, but not something that would make me break open the cash reserves and plung in. I have some reserves that I have earmarked for purchasing 5% more equities in case of a serious sell off. This isn't a regular re-balancing to your IPS or sleeping point plan. Th...
by Elysium
Wed Oct 10, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Comparing my performance against S&P 500
Replies: 20
Views: 1266

Re: Comparing my performance against S&P 500

I am a software entrepreneur with a considerable amount of my assets in the stock market. I am wondering if you may know of any good websites where I can track how my individual stock purchase decisions are performing against a benchmark (say S&P 500). As individual investors, we know that each and...
by Elysium
Wed Oct 10, 2018 5:28 pm
Forum: Investing - Help with Personal Investments
Topic: Foreign bonds
Replies: 14
Views: 743

Re: Foreign bonds

I hold about 5% of my portfolio in Vanguard Total Intl Bond, and my reasons for holding it is not at all related to efficient frontier or anything like that. It's purely out of fear of US treasuries blowing up and I am left with no money other than this 5% in foreign debt issued by several countries...
by Elysium
Wed Oct 10, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: The benefits of international diversification - NOT: Hulbert
Replies: 80
Views: 5224

Re: Mr. Bogle on "International Investing"

Jack Bogle makes some compelling arguments for NOT investing in ex-US, as a US investor: Here's Why Jack Bogle Doesn't Like Investing In Foreign Markets Vanguard Founder Jack Bogle on Mutual Funds, Common Sense Investing and the Stock Market Jack Bogle on Market Index Funds (2014) Bogle: Why I Don'...
by Elysium
Tue Oct 09, 2018 7:23 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Why Emerging Markets Matter
Replies: 82
Views: 6347

Re: Larry Swedroe: Why Emerging Markets Matter

None of this is new. Back in the days of the old Morningstar forums, Larry used to site the same arguments, and at that time nearly no one used to own EM. While Larry has been consistent about why one should own them, I cannot say the same thing about everyone else's interest in this. People sort of...