Search found 24 matches

by DWSwildcat
Mon Jan 23, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Appropriate to Use EDV in Taxable account?
Replies: 2
Views: 405

Appropriate to Use EDV in Taxable account?

Years ago I considered using EDV in a taxable account but several people convinced me it wasn't a good choice. They said EDV paid "Phantom income" i.e. income not received but taxed as though it were received, had a lot of unrealized capitol gains, and usually sold for a premium. However, ...
by DWSwildcat
Wed Apr 04, 2012 9:45 pm
Forum: Investing - Theory, News & General
Topic: Iowa farmland vs. S&P, 1950-2011
Replies: 39
Views: 5808

Re: Iowa farmland vs. S&P, 1950-2011

Athada, Check out my analysis on the Permanent Portfolio website. I did much the same analysis using Nebraska Farmland dat. m One thing that's important to realize is that farmland is a great counterbalance to stocks. From your chart (and my analysis) farmland performed great at exactly the same tim...
by DWSwildcat
Wed Sep 14, 2011 3:46 pm
Forum: Investing - Theory, News & General
Topic: Military Investing
Replies: 125
Views: 50370

Kudos! Wonderful you do this for your troops. Especially like the advice on the Penfed cash back card. I always encouraged my troops to get the same card. 5% cash back on gas and 1.5% on everthing else can't be beat. I'd put all my charges on that card then get back $500 every Novermber. When My tro...
by DWSwildcat
Fri Sep 09, 2011 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Using TIPS/Long Bonds in place of cash
Replies: 5
Views: 1026

I just plugged the numbers into Simba's spreadsheet a minute ago and I see 67% Tips and 33% VUSTX would have posted 2 losses in 40 years (-3.3% in 1973 and -0.31% in 1994). Overall from 1972 this would have returned 7.76%. TIPS posted losses 5 times but in 4 of those years, VUSTX's positive return m...
by DWSwildcat
Fri Sep 09, 2011 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Using TIPS/Long Bonds in place of cash
Replies: 5
Views: 1026

Using TIPS/Long Bonds in place of cash

I don’t like the idea of putting the cash portion of my portfolio into a Money market, CD or short term treasury fund since yields are so freakishly low. I am looking for ways to get a little higher return without too much volatility. As a thought experiment, for the cash portion of the portfolio, h...
by DWSwildcat
Sat Jun 11, 2011 12:39 am
Forum: Investing - Theory, News & General
Topic: Treasuries, GNMAs, corporates and a U.S. debt default
Replies: 48
Views: 4647

Amazingly, I was just about to post the same question when I saw Eureka's post. THe best solution I can think of off the top of my head is for my bond allocation to be half VWESX (long term investment grade - 98%corp bonds) and half into LTT with VUSTX. I doubt anyone could truly be devastated by th...
by DWSwildcat
Thu Jun 02, 2011 12:31 am
Forum: Investing - Theory, News & General
Topic: John T. Reed - "TIPS Won't Protect You from Inflation a
Replies: 17
Views: 2417

As an FYI, Here is another article that says the same thing. Finding two articles with a certain viewpoint doesn't guarentee their validity but it certainly does give credense to the idea. TIPS: The U.S. Treasury offers securities where yields and principal get adjusted regularly for the rate of inf...
by DWSwildcat
Wed Jun 01, 2011 11:22 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

fredflinstone

I didn't short any treasuries but I'll keep the idea in my back pocket. Sometimes I just toss out an idea to the boglehead crowd to get some honest feedback. I always appreciate comments or even criticism. That's how you learn and develop perspective.
by DWSwildcat
Tue May 31, 2011 9:22 am
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

In this article, John T Reed expalins why any govt indexed bond (Like a TIP) will lose big if hyperinflation occurs. m I can't access the credit Suisse referenced mentioned above so I am still very skeptical stocks hold up well during hyperinflation. I have read in several sources the German market ...
by DWSwildcat
Sun May 29, 2011 12:47 pm
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

patrick I didn't do a good job of explaining TIPS. You are correct the principle value of the TIP changes with CPI changes. Still TIPS do not adjust in real time (semiannually) therefore offer virtually no protection against hyperinflation. I'm curious why you claim stocks held up well during the We...
by DWSwildcat
Sun May 29, 2011 2:53 am
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

rushnp774 TIPS rates are adjusted 2 times each year. For the sake of argument, assume TIPS rates are adjusted on 1 Jan and 1 july. Suppose on 31 Dec the Inflation rate is 1%. That means for the next 6 months TIPS will be paying, say 1.5%. Suppose the inflation rate starts moving up so that by 1 July...
by DWSwildcat
Sun May 29, 2011 2:27 am
Forum: Investing - Theory, News & General
Topic: Are we entering a period of disinflation?
Replies: 21
Views: 3223

Bongleur You really think owning long term treasuries and bonds are a good idea? I sold all my bonds/govt debt 2 years ago. With a $14T Federal debt you feel safe owning these instruments? You are either the most patriotic person I've met or you have no appreciation for the financial mess we're in. ...
by DWSwildcat
Sun May 29, 2011 1:55 am
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

rushnp774 TIPs are a good way to protect yourself from mild inflation but it's a fact that TIPS lose all value in a hyperinflationary scenario. That right, a 100% wipeout. After about 10 hours searching for the best online precious metal dealer, I think the top choice is Goldmart. It's rated A- by t...
by DWSwildcat
Sat May 28, 2011 11:22 pm
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

rushnp774, I used to think you way you do until recently. However, I came to realize I was well diversified in in stocks but had virtually no exposure to hard assets (land, precious metals, oil, Ag commodities). If high inflation hits, hard assets are about the only things that won't be wiped out. T...
by DWSwildcat
Sat May 28, 2011 5:07 pm
Forum: Investing - Theory, News & General
Topic: Are we entering a period of disinflation?
Replies: 21
Views: 3223

Depression versus Hyperinflation

letsgobobby Parts of the economy are slumping badly, such as housing, which could take down the banking sector and lead to a Depression. On the other hand, with the govt dropping rates to zero and buying trillions of US debt, if US govt creditors decide to dump their holdings, there could be hyperin...
by DWSwildcat
Sat May 28, 2011 4:37 pm
Forum: Investing - Theory, News & General
Topic: Precious Metals in Your Portfolio
Replies: 42
Views: 3751

Precious Metals in Your Portfolio

I've been considering adding some gold/silver to my portfolio as a hedge against inflation and/or possible hyperinflation. I'm curious if other Bogleheads own gold and silver and if so, what percentage of your portfolio is in precious metals. Would gold/silver be a good hedge against hyperinflation?
by DWSwildcat
Tue Apr 05, 2011 12:43 am
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

Gsmith Agree with your take. Considering the Fed has been purchasing 70% of treasury bonds in QE2, it will be extremely interesting to see what happens on 30 Jun when QE2 ends. There's a good chance rates could spike then. It's possible rates could somehow stay low over the coming decade but the odd...
by DWSwildcat
Mon Apr 04, 2011 8:52 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

Re: Investing in inverse bond ETF's

The 30-year treasury is currently trading at a yield of about 4.5%. The bond market clearly is not particularly worried about default risk or inflation risk. What makes you think your judgement is superior to the collective judgement of tens of thousands of professional bond buyers and sellers? I us...
by DWSwildcat
Mon Apr 04, 2011 5:40 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

[i]Stocks historically do ok in periods of inflation and interest rates going up. I believe when the US had "stagflation", stocks slightly outperformed bonds. In hyperinflation, stocks do ok and massively outperform bonds.[/i] GLENNC Gadzooks! You really think stocks do well in a rising in...
by DWSwildcat
Mon Apr 04, 2011 5:03 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

Tramper Al I have already harvested all my losses from 2008 and 2009. I've already moved my IRA to short term funds. My fund allocation is well diversified the way I (and most Bogleheads) would like. Still, I am 100% in paper assets and paper assets may come apart much like what happened in the 1970...
by DWSwildcat
Mon Apr 04, 2011 3:49 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

Trapper Al You're right - I could sell off some of my stock index funds but I don't like to get stuck with a big tax bill. Besides, even if I did sell some funds I'd still be 100 long in my position with no hedge. Frankly I'm scared some nasty inflation rises/stock sell offs could happen that would ...
by DWSwildcat
Mon Apr 04, 2011 3:29 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

[quote="gsmith"]Morningstar has some excellent videos and commentary why these should never be held for more then a couple days. I agree with the videos: 99% of inverse ETF's don't work because of their volatility. However, the inverse [u]treasury[/u] ETF's have far less volatility. Check ...
by DWSwildcat
Mon Apr 04, 2011 2:08 pm
Forum: Investing - Theory, News & General
Topic: Investing in inverse bond ETF's
Replies: 38
Views: 5294

Investing in inverse bond ETF's

First off, my entire portfolio is in Vanguard Index funds. However, I'm becoming more and more alarmed about our looming debt crisis. If inflation and interest rates spike up, stocks will drop and bonds will get killed. I've read a number of books lately trying to find some way to hedge my long posi...
by DWSwildcat
Sun Feb 06, 2011 12:37 am
Forum: Investing - Theory, News & General
Topic: Yearly stock sector returns
Replies: 2
Views: 705

Yearly stock sector returns

I'm trying to do some research on year by year stock sector returns covering the past 80 years or so. Years ago I found some good data on the internet but now I can't seem to find anything. If possible I'd like to see data on small caps, large caps, emerging markets, bonds, money market, etc. Can an...