Search found 8194 matches

by Doc
Mon Jun 18, 2018 12:06 pm
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 5
Views: 442

Re: Are the Fed and Treasury distorting the MBS market?

Could it be just the negative convexity with MBS coupled with rising rates that is causing the effect that you are seeing? :idea: Seems like that should produce the opposite effect. Fewer debtors executing calls/prepaying, so effective maturities and duration extend, so market prices of the MBS sho...
by Doc
Mon Jun 18, 2018 10:48 am
Forum: Investing - Theory, News & General
Topic: Are the Fed and Treasury distorting the MBS market?
Replies: 5
Views: 442

Re: Are the Fed and Treasury distorting the MBS market?

Could it be just the negative convexity with MBS coupled with rising rates that is causing the effect that you are seeing? :idea:
by Doc
Mon Jun 18, 2018 10:15 am
Forum: Investing - Theory, News & General
Topic: Should I worry about taxation of seller's accured interest in buying tbills?
Replies: 2
Views: 263

Re: Should I worry about taxation of seller's accured interest in buying tbills?

duricka wrote:
Thu Jun 14, 2018 8:58 pm
For now I bough only those bills that had 0 accrued interest. Should I assume Schwab will correctly report my part of profit if I buy a t bill with non-zero interest paid to the seller?
Schwab does not "screw it up".
by Doc
Sat Jun 16, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1161

Re: Bill Gross' fund, lately...

On the other hand, I think it's fair to say that there was a cult of personality around Bill Gross personally, and that the performance of PTTRX was widely attributed to him personally. That's why investors pulled out over 3/4 of the assets in the fund following his departure. I always had the ques...
by Doc
Sat Jun 16, 2018 9:48 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1161

Re: Bill Gross' fund, lately...

Bill Gross' departure had very little obvious-to-the-eye effect on PIMCO Total Return, and the fact that investors were able to pull out over $200 billion dollars, or over 70% of the assets in the fund, without hurting investors who stayed in the fund, is, to me, good evidence of the solidity and r...
by Doc
Sat Jun 16, 2018 9:20 am
Forum: Investing - Theory, News & General
Topic: Bill Gross' fund, lately...
Replies: 12
Views: 1161

Re: Bill Gross' fund, lately...

PTTRX suffered huge outflows when he left. I added Harbor Bond Fund (HABDX) to your chart. This fund is managed by the same Pimco team that managed PTTRX both then and now. https://s8.postimg.cc/4c9wrf2at/Gross-_Capture.gif Same fall off after Gross left and same recovery when everyone realized tha...
by Doc
Fri Jun 15, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

grok87 wrote:
Fri Jun 15, 2018 9:40 am
So using #Cruncher’s handy table you would want to have at least $1060 available per bond.
... by settlement day which I belive is 6/29.
by Doc
Thu Jun 14, 2018 9:11 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

For what it's worth here's a chart of the 30 year yield and the added additional yield over the ten year yield.

Image

The additional amount that you get going to 30 has really diminished in the last year or so. Change in Fed action?
by Doc
Wed Jun 13, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4703

Re: How and when do you decide to do Tax Loss Harvesting?

so lets say someone is at vanguard. could you flip from their total market ETF to the mutual fund without triggering a wash sale? I Probably not. There is no tax consequence from going from investor share to admiral. So I would assume that the same would apply here. I believe you would have a wash ...
by Doc
Tue Jun 12, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1816

Re: Is Vanguard Small Cap Index really small cap?

triceratop wrote:
Tue Jun 12, 2018 5:13 pm
ts IJS/VIOV -- S&P600 Value ETF. Oh and VIOV is available at an expense of 0.20%.
VIOV average volume < 10k :(
by Doc
Tue Jun 12, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1816

Re: Is Vanguard Small Cap Index really small cap?

The tilting strategies are easier in theory than they are in practice. This is true of other investment strategies as well. One reason a lot of folks have thrown in the towel and just index. I guess I am an eternal optimist. How about an ETF? https://s22.postimg.cc/6dapb9txt/IJS_Capture.gif e/r 0.2...
by Doc
Tue Jun 12, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1816

Re: Is Vanguard Small Cap Index really small cap?

nedsaid wrote:
Tue Jun 12, 2018 1:48 pm
These type of funds are not easy too find, the ones you find have their flaws. Many have expense ratios higher than what many Bogleheads will tolerate.
Yep.
by Doc
Tue Jun 12, 2018 12:41 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard Small Cap Index really small cap?
Replies: 32
Views: 1816

Re: Is Vanguard Small Cap Index really small cap?

Well, sometimes close enough is close enough. Mid-Caps perform in a similar fashion to Small-Caps, tend to have a little less return with a little less volatility. Many feel that Mid-Caps are the "sweet spot" of the stock market. I would not obsess over this. Re: "the sweet spot" Not according to L...
by Doc
Tue Jun 12, 2018 11:11 am
Forum: Investing - Theory, News & General
Topic: Impact of Fed. interest rate hike on CD rates
Replies: 4
Views: 763

Re: Impact of Fed. interest rate hike on CD rates

The Fed is expected to raise rates at the current (june 12-13) meeting. What is your prediction as to the impact a rate hike will have on CD rates? Because a Fed. benchmark rate hike is strongly predicted (as well as future hikes later this year), is this already likely factored into current CD rat...
by Doc
Tue Jun 12, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: When will Fed meet next to adjust interest rates?
Replies: 3
Views: 404

Re: When will Fed meet next to adjust interest rates?

You want to look at the Federal Open Market Committee (FOMC) calendar. https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm They are meeting today and tomorrow. I belive that they make announcements (press release) of federal rate target moves about 2:00 PM on the second day. Minutes come...
by Doc
Mon Jun 11, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4703

Re: How and when do you decide to do Tax Loss Harvesting?

michaeljc70 wrote:
Mon Jun 11, 2018 10:30 am
I also don't keep bonds in taxable accounts.
Some bonds are very tax-efficient. Notice the short bond funds at the top of the list.

From the Bogleheads Wiki:
Image

https://www.bogleheads.org/wiki/Tax-eff ... _placement
by Doc
Mon Jun 11, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: How and when do you decide to do Tax Loss Harvesting?
Replies: 47
Views: 4703

Re: How and when do you decide to do Tax Loss Harvesting?

michaeljc70 wrote:
Mon Jun 11, 2018 10:08 am
The amount of talk on these forums of TLH after a 9 year bull run suprises me.
It's not been a bull market in bonds.
by Doc
Sun Jun 10, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

People need to stop using a claim of Recency bias as a crutch to justify their position that 30-day T-Bills keep up with inflation! Maybe I wasn't being clear. I don't think you should use the last ~ten years US Treasury data to make any kind of predictions of future events at all because of the ex...
by Doc
Sun Jun 10, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

That said, if somebody is worried about bonds and inflation (a very legitimate concern), they can largely protect themselves with TIPS. That's another discussion and likely another thread Right. That's Grok's 30 year TIPS threads. Occasionally I throw in a rolling ten ladder into that thread instea...
by Doc
Sun Jun 10, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

FIREchief wrote:
Sun Jun 10, 2018 3:34 pm
There is no such thing as "normal" times.
Agreed, but I think we should be able to agree that the Fed action from 2008 through ~2016/17 was not normal. Using interest rate data from the past ten years fro projections is very iffy in my mind.
by Doc
Sun Jun 10, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

That narrowing gap since 2008 (between the grey and the green line) indicates that they have not been keeping up with inflation for the past 10 years. People need to stop using Treasury data starting with 2008. The '08 financial crisis and the subsequent some ten year period of Fed quantitative eas...
by Doc
Sun Jun 10, 2018 11:59 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation. Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation. Can you please elaborate? I *think* I know what you mean, but want to make sure. Thanks ...
by Doc
Sun Jun 10, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

In any case the key to compliance would be widespread availability of Admiral fund shares at other brokerages. An e/r of 10 is great but 20 should not be a deal breaker. Still, from my perspective (and I realize that my view might be different from yours), 10 basis points would cost me, round numbe...
by Doc
Sun Jun 10, 2018 11:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation. Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation. Can you please elaborate? I *think* I know what you mean, but want to make sure. Thanks ...
by Doc
Sun Jun 10, 2018 11:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

autolycus wrote:
Sun Jun 10, 2018 11:17 am
Prudence would generally require that retirement assets not be in cash because we know cash will be beaten by inflation.
Generally T-bills are considered cash and 30 day t-bills will not be beaten by inflation.
by Doc
Sun Jun 10, 2018 11:22 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

tibbitts wrote:
Sun Jun 10, 2018 11:10 am
In any case the key to compliance would be widespread availability of Admiral fund shares at other brokerages.
An e/r of 10 is great but 20 should not be a deal breaker.
by Doc
Sun Jun 10, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

There are a number of references addressing Vanguard Admiral Shares at other brokers. An example: She came back and said that although you can not purchase a new position in a Vanguard Admiral fund at Schwab, you can transfer an existing Admiral fund over to Schwab and then continue to buy more shar...
by Doc
Sun Jun 10, 2018 10:04 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

I don't think you would have to liquidate funds and pay taxes, but you would have to switch to more expensive share classes. I'm not sure if you would have to switch at Vanguard before moving or at the new brokerage after. Probably someone else has done this and can confirm. Might be a solution. So...
by Doc
Sun Jun 10, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

TomatoTomahto wrote:
Sun Jun 10, 2018 9:50 am
Wife’s employer has nothing against Vanguard, but they have a limited number of approved brokers (3 or 4, I believe, including Fidelity). I think it would add to their costs to expand the list.
Better your costs go up then mine. :P
by Doc
Sun Jun 10, 2018 9:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

People are making things up and nit-picking about inconsequential changes in order to try to justify keeping archaic mutual fund platforms. We have a mid 7 digit amount in Admiral class shares, with low 7 digit capital gains. My wife’s employer “grandfathered” Vanguard mutual fund only accounts, bu...
by Doc
Sat Jun 09, 2018 4:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

The letter was addressed to "brokerage client". Does that mean that at some point that I had a brokerage account? I would think so. At that time I had both mutual fund only accounts and brokerage accounts at Vanguard. The brokerage account was "outsourced" to Pershing presumably because Vanguard wa...
by Doc
Sat Jun 09, 2018 4:25 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Did this letter have anything to do with the new "platform" that is being discussed? No. What is being discussed here is Vanguard's attempt to convert all mutual fund only accounts to brokerage accounts. Interesting "say what" on the Pershing to Vanguard change. In downloading to Morningstar we sti...
by Doc
Sat Jun 09, 2018 4:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Unfortunately, for some employed in the financial services arena, the only choice would be to move out of Vanguard. This brings up an interesting point. What will Vanguard employees and the Board of Directors have to do? Have they transitioned? How about our friend Bogle? No. They just have to have...
by Doc
Sat Jun 09, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 103
Views: 7664

Re: US T bills - first time user

Regarding T-Bill quotes with Yield to Maturity data: WSJ Data Center https://s22.postimg.cc/69umclsxt/T-bills_Capture.gif http://www.wsj.com/mdc/public/page/2_3020-treasury.html?mod=topnav_2_3010#treasuryB No subscription needed. This data is of the last market "close". During market hours you can g...
by Doc
Sat Jun 09, 2018 3:22 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Unfortunately, for some employed in the financial services arena, the only choice would be to move out of Vanguard. I read something about financial service arena employees could have an outside brokerage account in some cases with certain conditions like copies of there monthly statements having t...
by Doc
Sat Jun 09, 2018 10:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Vanguard can never get rid of the mutual fund platform. Maybe my choice of the word "platform" was imprecise. I was thinking of the investor having to have a different "account" for each mutual fund on the old "platform" and only one account on the brokerage "platform". I assumed that the computer ...
by Doc
Sat Jun 09, 2018 9:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

- and you are not subsidizing anyone. Having two platforms is more expensive then having only one. Economies of scale would suggest that the platform with the largest number of customers would have a lower per customer cost. Since we are all paying the same rate (expense ratio) for our Vanguard mut...
by Doc
Sat Jun 09, 2018 9:28 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

The free lunch of 2-3% TIPS yields may only occur once every 20 years or so. " every 20 years or so " ? Recency bias again. TIPS have only been issued for 19 years and for about nine of those years the Fed has been active in quantitative easing which has now stopped. "For the period 1926-2004 longe...
by Doc
Fri Jun 08, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Personally, as long as total market index is there, it is unimportant whether S&P 500 is there. Vanguard's Total Stock Market index is the CRSP index which is the industry standard for the US market. Right? Exactly how much experience do we have with this index? And almost every fund company offers...
by Doc
Fri Jun 08, 2018 6:44 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

More generally, haven't we long since moved past the days of 2 or 3% real rates being considered "normal"? Recency bias. Has very much time elapsed since quantative easing ceased? How large is the Fed's balance sheet now? Normal or still huge? Unemployment at decade lows. Inflation to follow? Will ...
by Doc
Thu Jun 07, 2018 6:58 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

1% isn't much, but it's not "chopped liver" either. For example the cost of a $30,000 per year 30-year hypothetical [*] ladder with each bond yielding 1% would be about $126,000 less than if they all yielded 0%. The following table shows the cost of the ladder ... No argument. My base is Swedroe's ...
by Doc
Thu Jun 07, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 21
Views: 2137

Re: 30 yr tips auction: june 21: 1.0% yield?

If the 30yr was ~2% then maybe yes. However, I'm more inclined to ladder 5yr TIPS for protection and wait the chances for better real yields at longer duration. But who knows if that will ever happen in a useful timeframe .... Finally somebody else besides me thinks that commiting to 1% for 30 year...
by Doc
Thu Jun 07, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

Can someone who's upgraded confirm that I will still have the "exchange" option for my mutual funds within the upgraded brokerage account, not just "buy/sell" like ETFs? Within Vanguard mutual funds at least the answer is yes. Thanks, appreciated. That's the way my IRA brokerage works. To purchase ...
by Doc
Thu Jun 07, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

I have a real problem if Vanguard's own employees are not capable of choosing an appropriate asset allocation from a wide variety of Vanguard's own funds. Advice for real life Vanguard Personal Advisor Services combines the best of high-touch and high-tech to help you with your real-life investing n...
by Doc
Thu Jun 07, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard's own 401k plan eliminating S&P 500 Index option!
Replies: 86
Views: 7443

Re: Vanguard's own 401k plan eliminating S&P 500 Index option!

Crisium wrote:
Thu Jun 07, 2018 8:06 am
This stands out to me too. SP500 vs TSM is a wash unless you really prefer avoiding small caps completely for some reason.
Not at all. If you desire to overweight small value for example the "best" way may be to use S&P500 plus a small value fund.
by Doc
Thu Jun 07, 2018 11:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard upgraded my accounts - angry [Brokerage Services]
Replies: 222
Views: 31197

Re: Vanguard upgraded my accounts - angry [Brokerage Services]

jmk wrote:
Thu Jun 07, 2018 11:30 am
Can someone who's upgraded confirm that I will still have the "exchange" option for my mutual funds within the upgraded brokerage account, not just "buy/sell" like ETFs?
Within Vanguard mutual funds at least the answer is yes.
by Doc
Mon Jun 04, 2018 10:55 am
Forum: Investing - Theory, News & General
Topic: PenFed 3% 5 year certificates are back.
Replies: 15
Views: 2230

Re: PenFed 3% 5 year certificates are back.

For comparison the current yield on the five year Treasury is 2.77%.

No early withdrawal penalty, no state income tax and no need for another account.
by Doc
Sat Jun 02, 2018 1:11 pm
Forum: Investing - Theory, News & General
Topic: Interest calculation when moving money in MMFs and bond funds
Replies: 4
Views: 447

Re: Interest calculation when moving money in MMFs and bond funds

For bond funds, it depends on the bond fund. There is no day that you get a better or worse return and you cannot arbitrage money away from someone else by choosing the day you buy/sell. For MMF, the interest is accrued daily and you get it, so also no day is better than any other. Some bond funds ...
by Doc
Fri Jun 01, 2018 7:20 am
Forum: Investing - Theory, News & General
Topic: General Electric
Replies: 57
Views: 6642

Re: General Electric

We own GE stocks as well. I sold some this year and generated some TLH to cover the cap gain. The cost basis for our stocks is very low so we are just holding on or may gift them to our kids and let them cash it. I am puzzled though as to why it is still up and down and hovering at the $14 mark. On...
by Doc
Thu May 31, 2018 6:32 am
Forum: Investing - Theory, News & General
Topic: Treasury yields drop, CD yields hold steady
Replies: 16
Views: 2399

Re: Treasury yields drop, CD yields hold steady

I'm not sure what I should expect. Both Treasury and brokered CD yields have been generally rising in recent months, so I wouldn't be surprised if Treasury yields started falling, that brokered CD yields would follow suit. Apparently a lot of the Treasury buying was from foreign investors running f...