Search found 17 matches

by thehumangame
Tue Oct 09, 2007 3:59 pm
Forum: Investing - Theory, News & General
Topic: Good News- Business Week says Asset Alloc May Not Work!
Replies: 8
Views: 2332

Elliot Fineman, a senior vice-president at Compass Investors, a Kenilworth (Ill.) money manager, compares conventional asset allocation to driving at a constant speed, regardless of traffic and road conditions. "You'd have a serious accident," says Fineman. Compass issues asset allocation recommend...
by thehumangame
Thu Sep 20, 2007 7:51 pm
Forum: Personal Finance (Not Investing)
Topic: College students struggle on history test
Replies: 28
Views: 5878

49/60 :(
by thehumangame
Wed Sep 19, 2007 6:42 pm
Forum: Investing - Theory, News & General
Topic: For those who advocate 100% equities....
Replies: 7
Views: 2106

Er... That fund is 85% equities but around 18% of those equities are international. It's not quite fair to compare it to a US-only 100% equity fund.
by thehumangame
Mon Sep 17, 2007 7:18 pm
Forum: Investing - Help with Personal Investments
Topic: "Why Bonds" Redux
Replies: 5
Views: 1435

TreasuryDirect just doesn't tell you the current market value of your bonds. That doesn't mean it doesn't matter; if for some reason you had to sell your bonds before maturity you would get the current market price. Think of it like this: since bond funds hold all sorts of bonds with different matur...
by thehumangame
Tue Sep 04, 2007 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Things you find out about in yor familes finances.........
Replies: 16
Views: 5181

In my family, besides the normal birthday presents of toys and everything else little kids like, we would get U.S. savings bonds. The face value would typically be between $100 to $200 a year, the higher amounts mainly being given when we were younger. The intent was to teach us the value of saving ...
by thehumangame
Tue Sep 04, 2007 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: How much money do you keep in your checking account?
Replies: 35
Views: 12620

$2,000 cushion. Paychecks get directly deposited in it so it never gets too low, and on the first of every month everything over $2,000 gets moved into the brokerage account and into the appropriate funds. I'm not tempted to spend more than otherwise by having it there. Since I make the account bala...
by thehumangame
Fri Aug 31, 2007 10:28 am
Forum: Investing - Theory, News & General
Topic: paper on SRI
Replies: 3
Views: 2535

By the way, here's nominal total return (div. reinvested) data that I got by processing Yahoo Finance historical quotes: Jun 3 1991--Aug 30 2007 Domini 400 (DSEFX until Nov 29 2006, DSI after): Mean (CAGR): 9.78% Standard deviation (daily): 16.23% S&P 500 (VFINX): Mean (CAGR): 10.52% Standard deviat...
by thehumangame
Sun Aug 12, 2007 2:36 pm
Forum: Investing - Theory, News & General
Topic: Dow historical chart: reassuring or unsettling?
Replies: 28
Views: 8285

They're different ways of measuring the same thing. Academics tend to favor continuously compounded returns because they make it easier to apply calculus. Suppose I can invest in something that returns 0.5% of my invested amount each month. I want to know how much I will have in five years if I inve...
by thehumangame
Sun Aug 12, 2007 11:05 am
Forum: Investing - Theory, News & General
Topic: Dow historical chart: reassuring or unsettling?
Replies: 28
Views: 8285

http://www4.ncsu.edu/~jbcrowso/longchart.png Assuming reinvested dividends, and using the same 1871-2004 data other posters above me are using. Shiller's ie_data.xls included dividend yields but he didn't compute a total return series, so I did the computation myself. By the way: (Annualized, conti...
by thehumangame
Fri Aug 10, 2007 10:34 am
Forum: Investing - Theory, News & General
Topic: What is going on with this fund: NVCBX???
Replies: 5
Views: 1160

It's a dividend distribution. If you're automatically reinvesting dividends you'll notice that your number of shares goes up whenever one of those big NAV drops occurs. See here: http://finance.yahoo.com/q/hp?s=NVCBX&a ... f=2007&g=m
by thehumangame
Thu Aug 09, 2007 3:51 pm
Forum: Investing - Theory, News & General
Topic: hypothetical growth of $10,000/compound DAILY growth rate
Replies: 14
Views: 4727

Yahoo Finance makes the data available. 8) Click on "Historical Prices" on the menu on the left. The column you're interested in is Adj Close. It works by reducing past prices to account for reinvested dividends and, for stocks and ETFs, splits. See: http://help.yahoo.com/l/us/yahoo/finance/quotes/q...
by thehumangame
Thu Aug 09, 2007 2:57 pm
Forum: Investing - Theory, News & General
Topic: hypothetical growth of $10,000/compound DAILY growth rate
Replies: 14
Views: 4727

The "growth of $10,000" chart you see in prospectuses is adjusted for reinvestment of distributions. To see this, take a look at a fund that pays out a whole lot of distributions, for instance a bond fund. Vanguard Total Bond Market (VBMFX): https://flagship.vanguard.com/VGApp/hnw/funds/performance?...
by thehumangame
Wed Aug 08, 2007 2:27 pm
Forum: Investing - Theory, News & General
Topic: Non-Index Bond Funds need to Checked
Replies: 4
Views: 1351

The date's about right for a big capital gains distribution, isn't it? Yahoo Finance only tracks the price of shares of funds, not total return.
by thehumangame
Wed Aug 01, 2007 6:19 pm
Forum: Investing - Theory, News & General
Topic: GeoMean/ArithMean modeling question
Replies: 48
Views: 11887

Continuing... log(2) = 0.693. log(1/2) = -0.693. So the mean of the logarithm of the final value is 0 and the standard deviation is 0.693. There are 100 coin flips in our betting game (surely, enough to approximate normality) so the mean (mu) stays 0 and the standard deviation (sigma) becomes 0.693 ...
by thehumangame
Wed Aug 01, 2007 5:52 pm
Forum: Investing - Theory, News & General
Topic: GeoMean/ArithMean modeling question
Replies: 48
Views: 11887

"Given the opportunity to place a $1 bet on a sequence of 100 coin flips, each of which would either double or halve my stake" *nods* Your final value is the product of a long string of 2's and 1/2's. Which means the logarithm of your final value is the sum of a long string of log(2)'s and log(1/2)'...
by thehumangame
Mon Jul 30, 2007 6:47 pm
Forum: Investing - Theory, News & General
Topic: For Young People..This is what you NOT do while investing
Replies: 54
Views: 25954

Come on, if you're going to take higher risks then at least take risks that come with a higher risk premium. -.-
by thehumangame
Mon Jul 30, 2007 6:29 pm
Forum: Investing - Theory, News & General
Topic: GeoMean/ArithMean modeling question
Replies: 48
Views: 11887

Having written a Monte Carlo simulator of my own recently... The return numbers you're interested in aren't even the same as commonly quoted return numbers. The ordinary sort is the 'arithmetic' return, which is (Vf - Vi)/Vi. (Vf is the final value at the end of a year; Vi is the initial value at th...