Search found 162 matches

by slowmoney
Wed Jun 21, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Money Pours In = Diminishing Returns?
Replies: 9
Views: 2352

Re: Money Pours In = Diminishing Returns?

Taylor wrote: You are talking about "asset bloat." Thanks Taylor. Yes. I find it rewarding that index funds don't have to worry about "asset bloat" but active managers certainly do. Seem like a difficult road for active management. Another hurdle to cross on the path to out perfo...
by slowmoney
Wed Jun 21, 2017 7:25 pm
Forum: Investing - Theory, News & General
Topic: Money Pours In = Diminishing Returns?
Replies: 9
Views: 2352

Money Pours In = Diminishing Returns?

Nope. Not for index funds. Money has been pouring, I mean pouring, into index funds. YET, index returns have not suffered diminishing returns. Yep, it’s all rainbows. That billionth dollar in index funds is just as good as the first. No diminishing returns. On the other hand, as an active management...
by slowmoney
Fri May 19, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Problems With The Factor Zoo
Replies: 24
Views: 2791

Re: Larry Swedroe: Problems With The Factor Zoo

Garland Whizzer wrote: I would like to thank Random Walker for posting Larry's articles consistently. I agree. Larry Swedroe finished the article with this: “First, as we have discussed, all factors—including the ones we have recommended—have experienced long periods of underperformance. So, before ...
by slowmoney
Fri May 19, 2017 5:03 pm
Forum: Investing - Theory, News & General
Topic: "Why Value Stocks Have Disappointed"
Replies: 42
Views: 6052

Re: "Why Value Stocks Have Disappointed"

Rekenthaler Report: “Why Value Stocks Have Disappointed” wrote: The primary reason value investing has lost its mojo is not because stock buyers are behaving any differently, but because companies are. It’s a common behavioral trait. It’s always someone else’s fault. Yeah, it’s the companies fault, ...
by slowmoney
Sun May 14, 2017 3:15 pm
Forum: Investing - Theory, News & General
Topic: Do You Think Behavioral Anomalies Will Persist?
Replies: 40
Views: 3633

Re: Do You Think Behavioral Anomalies Will Persist?

Noah Smith wrote at the end of the article: So when you see an academic paper claiming to have found a way to make easy money, don’t dismiss it as a product of data mining -- it might be a way to make a quick buck. Mmmm....quick bucks. "Quick bucks" usually mean I have to front a bunch of ...
by slowmoney
Thu May 11, 2017 7:41 pm
Forum: Investing - Theory, News & General
Topic: WSJ: Most market anomalies academics have identified don’t exist
Replies: 53
Views: 6107

Re: WSJ: Most market anomalies academics have identified don’t exist

Thanks for the reply, Random Walker. :D

However, I guess I remain unconvinced. Being unconvinced is a bad place from which to "stay the course".
by slowmoney
Thu May 11, 2017 7:04 pm
Forum: Investing - Theory, News & General
Topic: WSJ: Most market anomalies academics have identified don’t exist
Replies: 53
Views: 6107

Re: WSJ: Most market anomalies academics have identified don’t exist

Random Walker wrote: When articles like this or long periods of underperformance occur, I think it's really important to have a strong belief in a rational risk or behavioral story to make one stick with his plan. Pervasive, persistent, and robust all look backwards. Intuitive, I believe, really hel...
by slowmoney
Wed May 10, 2017 7:19 pm
Forum: Investing - Theory, News & General
Topic: Do You Think Behavioral Anomalies Will Persist?
Replies: 40
Views: 3633

Re: Do You Think Behavioral Anomalies Will Persist?

Behavioral anomalies do not persist. They blink in and out of existence based upon nothing. So, no. On the Bloomberg site: “A New Paper Just Took a Huge Shot at Some of the World's Hottest Investments” Highlights from the article: The researchers looked at a variety of factors, including momentum, v...
by slowmoney
Wed Apr 19, 2017 7:37 pm
Forum: Personal Finance (Not Investing)
Topic: Did anything surprise you in your 2016 taxes?
Replies: 83
Views: 8003

Re: Did anything surprise you in your 2016 taxes?

My surprise: The CPA firm only charged $160.00 to file two state returns and federal. Usually, I use Turbo tax but I quit my S-corp, had moving expenses, received employer moving expenses, college expenses, sold/bought homes and had some rollovers. I had a daunting feeling to complete my taxes with ...
by slowmoney
Wed Apr 12, 2017 9:45 pm
Forum: Investing - Theory, News & General
Topic: Payout [how funds use proceeds when a holding is acquired]
Replies: 9
Views: 989

Re: Payout [how funds use proceeds when a holding is acquired]

Phineas J. Whoopee wrote: If one is to acquire all the shares of a corporation one must convince all* the owners to sell. The ones who won't accept nearly so little as the current market price need to be brought in, hence above-market tender offers. Wow Phineas, thanks for the answer. In economics, ...
by slowmoney
Wed Apr 12, 2017 8:24 pm
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 4304

Re: Value of having TIPS funds?

#Cruncher wrote: The annual average CPI did increase 3.2% from 218.056 in 2010 to 224.939 in 2011 (source). And this did indeed exceed the 2.7% one year growth of a 0% fixed rate I Bond purchased in January 2011. OK. The point of my post. When compared against the appropriate CPI change, the growth ...
by slowmoney
Tue Apr 11, 2017 7:05 pm
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 4304

Re: Value of having TIPS funds?

#Cruncher wrote: Since I Bonds issued at different times can have different fixed rates, there is no good way to just show "I Bond" returns in a way that is consistent with the annual returns of a bond fund like VIPSX or VBMFX, or with the annual increase in the CPI. [2] But a better way t...
by slowmoney
Mon Apr 10, 2017 9:06 pm
Forum: Investing - Theory, News & General
Topic: Payout [how funds use proceeds when a holding is acquired]
Replies: 9
Views: 989

Payout [how funds use proceeds when a holding is acquired]

In the CNBC article “AT&T to buy Straight Path Communications for $1.25 billion” on the CNBC website: U.S. wireless carrier AT&T said on Monday it would buy Straight Path Communications, a holder of licenses to wireless spectrum, for $1.25 billion in an all-stock deal. The No.2 U.S. carrier ...
by slowmoney
Sat Apr 08, 2017 8:45 pm
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 4304

Re: Value of having TIPS funds?

grok87 wrote: I am a big believer in tips as a hedge against a stagflation scenario. But i think one should also hold nominal treasuries as well to hedge against deflation. Basically i follow david swensen's advice to put your bonds in treasuries and tips/ibonds and skip corporates, mbs, etc. take y...
by slowmoney
Sat Apr 08, 2017 8:41 am
Forum: Investing - Theory, News & General
Topic: Value of having TIPS funds?
Replies: 35
Views: 4304

Re: Value of having TIPS funds?

Karen Wallace of Morningstar wrote in “Handy Weapons in an Inflation Fighter's Arsenal” (please feel free to read her article) : This is important to note because although TIPS mutual funds and ETFs hold bonds whose principal values adjust along with inflation, the funds themselves don't have a matu...
by slowmoney
Sun Mar 12, 2017 5:27 pm
Forum: Investing - Theory, News & General
Topic: A look at the small cap premium
Replies: 58
Views: 6374

Re: A look at the small cap premium

Larry wrote: First, it's logical that premiums should fall when implementation costs fall as investors care about NET returns. Thus, just as the dramatic fall in the cost of investing in stocks (not only ER ratios, but bid offer spreads and commissions) has IMO contributed to the fall in the ERP (hi...
by slowmoney
Wed Mar 08, 2017 9:10 pm
Forum: Investing - Theory, News & General
Topic: Rekenthaler: My Asset Allocation
Replies: 21
Views: 2482

Re: Rekenthaler: My Asset Allocation

John Rekenthaler wrote: My financial situation is not that strong—but it is very good, given my brilliant absurdly lucky decision to join an 18-person startup that would eventually become a $3.4 billion company. Mmm…I thought to work at Morningstar, you had to know something about finance and invest...
by slowmoney
Wed Feb 08, 2017 11:22 pm
Forum: Investing - Theory, News & General
Topic: a good time to fix your mortgage?
Replies: 17
Views: 2669

Re: a good time to fix your mortgage?

This is terrible news for real estate appraisers. Refinancing and sales usually drop off with rising rates. I am not sure if some appraisers understand just how slow things can get. Good thing, I accepted a job with the DOT as an appraiser, last year. [OT comment removed by admin LadyGeek] This is a...
by slowmoney
Tue Feb 07, 2017 8:43 pm
Forum: Investing - Theory, News & General
Topic: A note of caution from Robert Shiller
Replies: 66
Views: 10910

Re: A note of caution from Robert Shiller

Garland, It seems that Robert Shiller is cherry picking. Picking the most outrageous dates (the data points 2000 and 2006) to merely bolster his argument. It is easy to throw bombs but then offer no alternatives. What are we suppose to invest in, cash? Then cherry pick our entry and exit of the stoc...
by slowmoney
Sat Feb 04, 2017 11:57 am
Forum: Investing - Theory, News & General
Topic: Admiral Shares
Replies: 0
Views: 462

Admiral Shares

So, there was a recent post about Admiral shares expense ratios. This led me to think about the aggregate US stock market. According to U.S. News, as of October 2016, the value of the Vanguard Total US Stock Market mutual fund was $468,590,000,000. The expense ratio of the Total US fund is 0.05%. Th...
by slowmoney
Sat Jan 28, 2017 5:10 pm
Forum: Investing - Help with Personal Investments
Topic: Humble brag finally got admiral shares in taxable account
Replies: 29
Views: 4110

Re: Humble brag finally got admiral shares in taxable account

When we opened our first Vanguard Fund in 2008, the threshold for Admiral class shares was $50,000 per fund. Basically, I thought at the time…well maybe someday. Then THANKS to Vanguard, it’s investors, and of course, the founder Jack Bogle, they lowered the Admiral class shares to $10,000 per fund....
by slowmoney
Mon Jan 02, 2017 2:01 pm
Forum: Personal Consumer Issues
Topic: Thoughts on this inverse living floor plan and building a home in general
Replies: 30
Views: 2801

Re: Thoughts on this inverse living floor plan and building a home in general

As a real estate appraiser for the past 20 years, the following is my OPINION on new homes: 1. Don’t do it. 2. In many cases as an appraiser, it is extremely difficult to justify the construction price of a new home compared to other older homes in the area. The cost of materials and labour are simp...
by slowmoney
Thu Dec 29, 2016 10:24 pm
Forum: Investing - Theory, News & General
Topic: 100% TIPS and 0% in Nominal Bonds?
Replies: 168
Views: 10395

Re: 100% TIPS and 0% in Nominal Bonds?

Sometimes a big, endearing smile comes across my face. Especially, when people find “free lunches” that nobody knows about. Yeah, go 100% TIPs. Those silly nominal bond people….they don’t even know about inflation and bonds. I wonder what would happened if all the nominal bond people “discovered” TI...
by slowmoney
Sun Dec 18, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: anyone else moving into bond funds
Replies: 30
Views: 3882

Re: anyone else moving into bond funds

We sold around 5% of US Total Stock and bought US Total Bond with the proceeds. We rebalance once at the end of the year. I have no idea if that is a good time or not. Nothing like selling an asset class that has been "up a lot" and buying one that is a "falling knife". Selling h...
by slowmoney
Sun Dec 18, 2016 1:21 pm
Forum: Personal Consumer Issues
Topic: What Movie Have You Recently Watched?
Replies: 2937
Views: 862898

Re: What Movie Have You Recently Watched?

My son, daughter and I just saw, "Rogue One".

They said, "Best ending to a Stars Wars film ever." I tend to agree.

Also, he said the best part of "The Force Awakens" was when Chewbacca got ticked. Ha!
by slowmoney
Thu Dec 08, 2016 11:52 pm
Forum: Investing - Theory, News & General
Topic: Explain why Rebalancing isn't Market Timing?
Replies: 241
Views: 10905

Re: Explain why Rebalancing isn't Market Timing?

Aboose wrote: It just doesn't make sense to me. How can you reduce your risk, while simultaneously increasing your returns / beating the market? There is no Free Lunch. I can accept that rebalancing helps us get back to our emotionally set asset allocations, if it also means we are reducing our retu...
by slowmoney
Fri Jan 08, 2016 4:00 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund is Getting Hammered!
Replies: 71
Views: 10495

Re: TIPS Fund is Getting Hammered!

abuss,

I am not sure....

Basically, I really have zero interest in getting bogged down in an unending argument about TIPS of all things.

You are free to post your thoughts about TIPS.
by slowmoney
Tue Jan 05, 2016 3:30 pm
Forum: Investing - Theory, News & General
Topic: TIPS Fund is Getting Hammered!
Replies: 71
Views: 10495

Re: TIPS Fund is Getting Hammered!

Because there seems to be many TIPS apologists among Bogleheads, I think abuss likes to chide them. Slowmoney is NOT a TIPS apologist. 1. Many TIPS apologists state that TIPS are inflation insurance/protection. Let’s see. I can buy $1.5 million dollars of life insurance for around $800 per year. If ...
by slowmoney
Mon Dec 21, 2015 12:37 am
Forum: Personal Consumer Issues
Topic: How do you handle auto care? (for a non-DIY'er)
Replies: 54
Views: 5280

Re: How do you handle auto care? (for a non-DIY'er)

I am a dealership guy. They always try to up-sell and over-sell me. So, I just follow the maintenance manual that came with the car. Periodically, if I feel that something needs to be addressed I will have them do the repairs. A very, long time ago, a mechanic told me, "You don't do any prevent...
by slowmoney
Mon Dec 07, 2015 2:08 pm
Forum: Personal Consumer Issues
Topic: OPM breach and credit freeze
Replies: 296
Views: 44628

Re: OPM breach and credit freeze

Victoria wrote: They have not sent an email with a link. And a sign-on process is pretty rigorous. Yes. Snail mail and then the security questions. I had forgotten some of those things they asked about in the sign up process. Actually, I think that your responses are timed. Either you will know the ...
by slowmoney
Sun Dec 06, 2015 12:13 pm
Forum: Personal Consumer Issues
Topic: OPM breach and credit freeze
Replies: 296
Views: 44628

Re: OPM breach and credit freeze

I was actually enjoying my Saturday morning when a T-1000 showed up and delivered my OPM letter that I have been compromised. To be honest, I have kind of "given up" being mad about it. Didn't this "malicious cyber intrusion" happen like at least 6+ months ago or maybe even longe...
by slowmoney
Fri Nov 20, 2015 12:42 am
Forum: Investing - Theory, News & General
Topic: Another look at the size premium, redefining it improves the model
Replies: 14
Views: 1812

Re: Another look at the size premium, redefining it improves the model

According to NAREIT: To qualify as a REIT a company must: • Invest at least 75 percent of its total assets in real estate • Derive at least 75 percent of its gross income from rents from real property, interest on mortgages financing real property or from sales of real estate • Pay at least 90 perce...
by slowmoney
Sun Sep 20, 2015 10:02 pm
Forum: Investing - Theory, News & General
Topic: Are international bonds necessary?
Replies: 33
Views: 4920

Re: Are international bonds necessary?

So, the expense ratio is more like 0.50…Mmmm. Total US Bond has an expense ratio of 0.07. I have been thinking about this for some time, so I thought I would just post about it and move on to other things. In Vanguard’s paper, “Global fixed income: Considerations for U.S. investors” on page 4: A dep...
by slowmoney
Thu Aug 27, 2015 11:48 pm
Forum: Investing - Theory, News & General
Topic: The Bogleheads' Silent Majority
Replies: 255
Views: 41583

Re: The Bogleheads' Silent Majority

I lurk way too much…. Oddly enough, since I implemented Vanguard security protocols, I find it very onerous to log on to my account. I have not logged on to my account in weeks….I’ll probably never know how much money I “lost” in the correction. It must be some sort of Vanguard conspiracy to keep me...
by slowmoney
Sun Jul 26, 2015 6:36 pm
Forum: Personal Consumer Issues
Topic: Vanguard Account Hacked
Replies: 22
Views: 3893

Re: Vanguard Account Hacked

livesoft wrote: Perhaps of interest to folks here: I was locked out of one of my brokerage accounts a while ago. I had to call to get my username changed and along with that a new password, etc. The fraud department had detected some activity that I was unaware of and would not explain to me what th...
by slowmoney
Sun Jul 26, 2015 3:31 pm
Forum: Personal Consumer Issues
Topic: Vanguard Account Hacked
Replies: 22
Views: 3893

Re: Vanguard Account Hacked

Since this is a public forum, I really do not want disclose all the details.

Basically, unknown people were accessing my accounts, I was not accessing my accounts.
by slowmoney
Sun Jul 26, 2015 2:21 pm
Forum: Personal Consumer Issues
Topic: Vanguard Account Hacked
Replies: 22
Views: 3893

Vanguard Account Hacked

So, yes, my personal Vanguard account was hacked. I worked with Vanguard setting up new security protocols. It’s great fun wondering how many people gawked at your accounts. Since I am skeptical of the circumstances or maybe I am just paranoid: (NOTE: The Vanguard site was not hacked, just my accoun...
by slowmoney
Tue Jul 07, 2015 10:45 pm
Forum: Investing - Theory, News & General
Topic: How many Bogleheads tilt Value?
Replies: 49
Views: 5640

Re: How many Bogleheads tilt Value?

Sometimes I muse that value investing is one of the most successful and clever marketing ploys, I have ever heard of. :wink:
by slowmoney
Sun Jun 07, 2015 3:55 pm
Forum: Investing - Theory, News & General
Topic: Currency hedging equities: Vanguard's Global Min Vol Fund
Replies: 19
Views: 2246

Re: Currency hedging equities: Vanguard's Global Min Vol Fund

Thanks for the post, Browser. You usually have an edge to your posts which makes them interesting.... From the GMO White Paper: Adding a currency position to an ... investment may actually increase the risk exposure. and Currencies are not real assets: a currency depends on the creditworthiness of i...
by slowmoney
Fri May 01, 2015 8:19 am
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 12794

Re: Do REITs really offer effective portfolio diversificatio

Schuyler74 wrote: Finally, Fidelity concluded in 2013 that REITs are indeed "An Underutilized Portfolio Diversifier" and created a short PDF that directly addresses many of the topics raised earlier. Probably worth a skim if you're still reading page 3 of a thread! Thanks for the link!
by slowmoney
Thu Apr 30, 2015 7:55 pm
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 12794

Re: Do REITs really offer effective portfolio diversificatio

In an effort to get this thread to page 3: Kevin wrote: So I would consider my house more like my stocks than like my bonds. So, my house is a stock? Where is the evidence for this? Bernstein in “The Investors Manifesto” on page 35 wrote, “A house is most certainly not an investment, for one simple ...
by slowmoney
Wed Apr 29, 2015 6:24 pm
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 12794

Re: Do REITs really offer effective portfolio diversificatio

Rodc wrote:

Many writers told us REIT risk was sort of bond like.


Could you present some examples of writers who stated REITS are bonds?
by slowmoney
Mon Apr 27, 2015 10:14 pm
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 12794

Re: Do REITs really offer effective portfolio diversificatio

Vanguard stated in the paper, “Global equities: Balancing home bias and diversification”: Equities not domiciled in the United States accounted for 51% of the global equity market….despite the size of non-US markets, US mutual fund investors held, on average, only 27% of their total equity allocatio...
by slowmoney
Sun Apr 26, 2015 12:41 pm
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 12794

Re: Do REITs really offer effective portfolio diversificatio

So, REITS contain all the factor exposures of Market, Value, Size, Momentum, Term and Credit! All of this at an expense ratio of 0.10%! Dang! Factor exposure with little cost! Rick’s Core Four looks like the optimal blend between the passive-indexed 3-Fund and a small allocation to Factors. Why own ...
by slowmoney
Wed Apr 22, 2015 8:35 am
Forum: Investing - Theory, News & General
Topic: "How much of your portfolio is in index funds, and why?"
Replies: 91
Views: 12142

Re: "How much of your portfolio is in index funds, and why?"

Hi Taylor, I index about 93% of my portfolio. A stable value fund contains the remaining 7% as required by the 403b. I index because of the reduced costs and indexing is market efficient. Active trading is costly, volatile and extremely inefficient. Case in point is from Bloomberg’s article “Spreads...
by slowmoney
Sun Apr 12, 2015 12:27 pm
Forum: Investing - Theory, News & General
Topic: The Indexer, Speculator & Efficiency
Replies: 17
Views: 2074

Re: The Indexer, Speculator & Efficiency

Thanks, TwoByFour. I read the EMH Proof paper. Looks like I am trying to support Shiller on this one? Page 27 stated, "He (Shiller) argues that fads and mass psychology play an important role in the stock market.” Isn’t it ironic that one of Shiller’s “fads”, namely index funds, could possibly ...
by slowmoney
Thu Apr 09, 2015 11:39 pm
Forum: Investing - Theory, News & General
Topic: The Indexer, Speculator & Efficiency
Replies: 17
Views: 2074

The Indexer, Speculator & Efficiency

“We use to have Wooden men and Iron markets, now we have Iron men and Wooden markets.” To steal a phrase from old Navy men. Seems like the standard mantra is speculators make the markets efficient, really? So, our markets are more efficient because our speculators are more skilled and brilliant than...
by slowmoney
Fri Apr 03, 2015 8:21 pm
Forum: Personal Consumer Issues
Topic: Gearing up for big replacement windows project
Replies: 35
Views: 4218

Re: Gearing up for big replacement windows project

Slowmoney is 3 windows away from replacing or removing all 30 windows in his 1920's house. All the windows were original and in need of replacement. I started with the most drafty and guillotine like windows in the media room. Because of the lack of money, I just started to replace only 2 to 3 windo...