Search found 907 matches

by pascalwager
Fri Jan 05, 2018 10:59 pm
Forum: Investing - Theory, News & General
Topic: Hitting The Sell Button
Replies: 211
Views: 21537

Re: Hitting The Sell Button

The world bond/stock market values determine my bond percentage, currently 41.3%; so I have no need to re-balance.
by pascalwager
Wed Jan 03, 2018 5:12 pm
Forum: Investing - Theory, News & General
Topic: Did everyone in the early 80s have their money in CDs?
Replies: 77
Views: 6119

Re: Did everyone in the early 80s have their money in CDs?

No, I had a small fortune in three-month, and some six-month, T-bills; but I knew absolutely nothing about investing. I seem to recall ~10% rates in the early '80s.
by pascalwager
Sat Dec 30, 2017 3:43 pm
Forum: Investing - Theory, News & General
Topic: What ever happened to the Larry portfolio?
Replies: 114
Views: 10411

Re: What ever happened to the Larry portfolio?

I don't believe that the LP describes Larry's overall approach to investing. Before he dropped out of BH he mentioned that he also holds other investments.
by pascalwager
Fri Nov 17, 2017 2:41 am
Forum: Investing - Theory, News & General
Topic: Should you own only non-U.S. stocks?
Replies: 63
Views: 6656

Re: Should you own only non-U.S. stocks?

Are you a betting man (or woman)? I am ok with a tilt towards Int'l, but only with about 10-15% of my portfolio. S&P is also up 15% this year. You're not tilting towards int'l, you're tilting away from int'l and strongly towards US. (Today, int'l is 47.6% of world market.) Sorry to confuse you, I c...
by pascalwager
Wed Nov 15, 2017 8:13 pm
Forum: Investing - Theory, News & General
Topic: Do you subscribe to taking risk only on the equity side
Replies: 40
Views: 2594

Re: Do you subscribe to taking risk only on the equity side

I have three portfolios. Two are risky and the third relatively riskless. One risky portfolio includes total market type stock and bond funds in world market proportions. The other risky portfolio includes DFA stock and bond funds, allocated in world market proportions (US/non-US and stocks/bonds). ...
by pascalwager
Tue Nov 14, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: What Makes U.S. Treasuries the World's "Safe" Asset?
Replies: 24
Views: 2707

Re: What Makes U.S. Treasuries the World's "Safe" Asset?

abuss368 wrote:
Sun Nov 12, 2017 5:53 pm
David Swensen, Yale University CIO, has always recommend a simple bond allocation of 50% Treasuries and 50% TIPS.
True, and he also advises a growing slug of cash for time horizons less than 10 years.
by pascalwager
Tue Nov 14, 2017 8:54 pm
Forum: Investing - Theory, News & General
Topic: Buffett 90/10 Portfolio vs Target Retirement
Replies: 33
Views: 4677

Re: Buffett 90/10 Portfolio vs Target Retirement

Buffett also said that the 90/10 applies for a minimum 20-year time horizon, and was always my AA until recently (75, retired).
by pascalwager
Sat Nov 11, 2017 8:31 pm
Forum: Investing - Theory, News & General
Topic: Should you own only non-U.S. stocks?
Replies: 63
Views: 6656

Re: Should you own only non-U.S. stocks?

Portfolio7 wrote:
Fri Nov 10, 2017 3:33 pm
Are you a betting man (or woman)?

I am ok with a tilt towards Int'l, but only with about 10-15% of my portfolio. S&P is also up 15% this year.
You're not tilting towards int'l, you're tilting away from int'l and strongly towards US. (Today, int'l is 47.6% of world market.)
by pascalwager
Tue Oct 31, 2017 11:49 pm
Forum: Investing - Theory, News & General
Topic: How much international stock? A suggestion.
Replies: 228
Views: 47685

Re: How much international stock? A suggestion.

All due respect and reverence for Jack Bogle's advice does not change the fact that on this one topic, he represents a relatively isolated perspective. Iceport: He may "represent a relatively isolated perspective " but since 1993 when he first advocated "20% or less in international stocks" -- he h...
by pascalwager
Mon Oct 02, 2017 12:06 am
Forum: Investing - Theory, News & General
Topic: Alternative to Google Finance? [Portfolios feature deprecated]
Replies: 64
Views: 15864

Re: Alternative to Google Finance?

Yahoo Finance [...] Just list the tickers separated by commas in the URL https://finance.yahoo.com/quotes/vti,vxus,bnd Thank you, Ice-9, for this info! Just in time too: my Google tickers all expired again, like they do every month as I don't like to be signed in all the time; and instead, I just n...
by pascalwager
Sun Oct 01, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: Investing Books Debunked
Replies: 24
Views: 4317

Re: Investing Books Debunked

I've retired all of my books. Too much about making bets, acknowledged and unacknowledged. If Vanguard produced the world bond/stock index fund (WBS) with differing bond/stock ratios for various investor ages, etc., then you'd only need a book if you also had taxable accounts as the WBS wouldn't be ...
by pascalwager
Sun Oct 01, 2017 8:58 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?
Replies: 3
Views: 399

Re: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?

To me the answer to the your question depends on what you want. If you want the simplest way to have Sharpe's world market portfolio, then the four funds (or three funds, replacing the two stock funds with total world to have one fewer fund) is the way to go. If you want a reasonable approximation ...
by pascalwager
Sun Oct 01, 2017 8:47 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?
Replies: 3
Views: 399

Re: Thoughts on GAA or GAL (Global Asset Allocation ETFs)?

This appears to be active investing using a proprietary algorithm and only the top ten of the 28 component ETFs are identified. And the top ten even include a momentum and a value ETF. It may be a global portfolio, but surely doesn't represent the simple cap-weighted world market. And who would want...
by pascalwager
Sat Sep 30, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

aj76er wrote:
Sat Sep 30, 2017 4:38 pm
Just an FYI, I've started a wiki entry for Sharpe's WBS portfolio here: https://www.bogleheads.org/wiki/World_B ... _Portfolio

Feel free to make additions, updates, and/or corrections!

I've probably added all I care to do for the time being :)
I just now looked at it. Great job!
by pascalwager
Fri Sep 29, 2017 2:58 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

Sharpe mentions that the WBS portfolio is designed for a world without differential taxation, and modifications might be appropriate based on the affects of taxation on asset allocation and location. Allocation: -high-yield versus low-yield stocks -bonds versus stocks ratio Location: -hold municipal...
by pascalwager
Thu Sep 28, 2017 9:41 pm
Forum: Investing - Help with Personal Investments
Topic: Immigrant retiring in the US [Brazil]
Replies: 14
Views: 1094

Re: Immigrant retiring in the US [Brazil]

For a taxable investor, W. Bernstein recommends for bonds: 1/3 Treasuries, 1/3 CDs, and 1/3 munis.

For stocks, you could use the same two US and non-US funds in the LS series, or the Vanguard total world stock index fund.
by pascalwager
Wed Sep 27, 2017 1:11 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

Sharpe doesn't believe in factor premiums, but does seem to approve of one tilt. He calls it the yield tilt . It's based on differential taxation and uses a high-yield index fund in tax-sheltered accounts and a high capital gains index fund in a taxable account. This would be used to tilt away from ...
by pascalwager
Sat Sep 23, 2017 5:48 pm
Forum: Investing - Help with Personal Investments
Topic: Help?! My 70 year old father is 100% invested in equities
Replies: 79
Views: 8063

Re: Help?! My 70 year old father is 100% invested in equities

Any investor needs to consider whether he has the ability, willingness, and need to take risk. Larry Swedroe covers these criteria in his books and articles.

Does your father need to take the risk of 100% stocks? That might be the main question here.
by pascalwager
Sat Sep 23, 2017 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help?! My 70 year old father is 100% invested in equities
Replies: 79
Views: 8063

Re: Help?! My 70 year old father is 100% invested in equities

Wow - thanks for all the thoughts. Livesoft - was your post a joke? If so, it rang close to home as I recently revamped my portfolio and adopted a 3-fund approach that is 80% stocks and 20% bonds. Since all this money (low-mid six figures) is in retirement accounts I won't access for 25+ years, I c...
by pascalwager
Sat Sep 23, 2017 12:01 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 110
Views: 12204

Re: VG wants everyone to transfer to a brokerage account?

The conversion buttons are now removed from my account screens after first showing up a few months ago. From what I understand from Vanguard statements, they're not trying to convert everybody, but do want to convert most accounts. They seem to expect to maintain two platforms--the mutual fund platf...
by pascalwager
Fri Sep 22, 2017 10:03 pm
Forum: Investing - Theory, News & General
Topic: VG wants everyone to transfer to a brokerage account?
Replies: 110
Views: 12204

Re: VG wants everyone to transfer to a brokerage account?

I haven't upgraded and won't until forced. *We only use mutual funds *Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage *Have dividends from one fund directed to another fund, which isn't possible in brokerage Upgrading to a brokerage would derai...
by pascalwager
Thu Sep 21, 2017 3:07 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 5202

Re: What is the main purpose of rebalancing?

Sharpe has already analyzed the two common dynamic strategies for asset allocation: buy-and-hold and constant-mix (contrarian rebalancing) in his paper Dynamic Strategies for Asset Allocation (1995). https://web.stanford.edu/class/msande348/papers/PeroldSharpe.pdf However, more recently he has recom...
by pascalwager
Wed Sep 20, 2017 10:30 pm
Forum: Investing - Theory, News & General
Topic: AA if you were just starting out again
Replies: 49
Views: 3994

Re: AA if you were just starting out again

I would use Sharpe's world market portfolio, but without the bonds.
by pascalwager
Wed Sep 20, 2017 7:14 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 5202

Re: What is the main purpose of rebalancing?

The main purpose of rebalancing, according to Sharpe, is to maintain the same portfolio risk with respect to the market portfolio. Here's an example using Sharpe's Formula 15. If you want 70/30* stocks/bonds whenever the market portfolio is 60/40*, then if the market rises to 69/31 at quarter's end,...
by pascalwager
Wed Sep 20, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 5202

Re: What is the main purpose of rebalancing?

You can use Sharpe's AAA Formula 15 to initiate and "rebalance" with respect to his world bond/stock market portfolio. (Since, as a retiree, I want to own the market portfolio itself, I don't need to use Formula 15 to rebalance.) At most, the rebalancing (buy/sell) would be done quarterly, and may n...
by pascalwager
Thu Sep 14, 2017 10:35 pm
Forum: Investing - Theory, News & General
Topic: "Find out if your fund is declaring a quarterly dividend this month."
Replies: 17
Views: 3698

Re: "Find out if your fund is declaring a quarterly dividend this month."

The DFA bond funds pay dividends quarterly, just like the DFA stock funds. So, conveniently, I only need to update the DFA bond fund share quantities quarterly on my spreadsheet, compared to monthly for the Vanguard bond funds.
by pascalwager
Tue Sep 12, 2017 4:31 pm
Forum: Investing - Theory, News & General
Topic: Perhaps you shouldn't rebalance your international stock allocation
Replies: 21
Views: 4659

Re: Perhaps you shouldn't rebalance your international stock allocation

The global index doesn't matter--in fact it's completely irrelevant, if you're using several individual index funds. If you believe that the individual cap-weighted funds cover the entire global stock market then you would need to use the individual index market values to determine the initial propo...
by pascalwager
Mon Sep 11, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Yes Virginia, you can lose money in bonds
Replies: 36
Views: 5442

Re: Yes Virginia, you can lose money in bonds

I think it's reasonable to assume that, at some point in the future Central Banks will let inflation get away from them. Lessons are seldom learned permanently. Which is why many Bogleheads (myself included) have at least some allocation to TIPS in their bond portfolios. :wink: Yep. Just for learni...
by pascalwager
Sat Sep 09, 2017 5:48 pm
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3583

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now...
by pascalwager
Sat Sep 09, 2017 11:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard Global Bond Index Portfolio (annuity)
Replies: 11
Views: 1822

Re: Vanguard Global Bond Index Portfolio (annuity)

Interesting. 70/30 is the US/EXUS bond split found in the LifeStrategy and TR funds. LifeStrategy Income would probably be a better choice here? A true global bond fund (with market cap weights, as per above post) would make it trivial to hold William Sharpe's World Bond/Stock portfolio. You would ...
by pascalwager
Sat Sep 09, 2017 11:12 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3583

Re: "The Market" Portfolio

I want to thank all of you for your thoughtful responses. I am still struggling with what I want my asset allocation to look like, but you guys have given me lots of food for thought. I know that many of my questions don't have simple answers. And many are probably dumb questions. Asset allocation ...
by pascalwager
Fri Sep 08, 2017 9:44 pm
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3583

Re: "The Market" Portfolio

I want to thank all of you for your thoughtful responses. I am still struggling with what I want my asset allocation to look like, but you guys have given me lots of food for thought. I know that many of my questions don't have simple answers. And many are probably dumb questions. Asset allocation ...
by pascalwager
Fri Sep 08, 2017 11:48 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3583

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now...
by pascalwager
Fri Sep 08, 2017 1:49 am
Forum: Investing - Theory, News & General
Topic: "The Market" Portfolio
Replies: 26
Views: 3583

Re: "The Market" Portfolio

Sharpe calls his market portfolio a practical approximation of the economics market portfolio. Unfortunately, Barclays doesn't provide market values, so you would need to use Citi index market values even though you're using Vanguard bond funds which follow Barclays indexes. At 43% bonds, right now,...
by pascalwager
Thu Sep 07, 2017 7:01 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?
Replies: 19
Views: 2219

Re: Fixed Income: Percentage Of Portfolio Or Specific $ Amount?

Your risk portfolio would have 43% bonds right now if you hold the Sharpe world market portfolio. But your riskless portfolio (TIPS) should cover any uncovered liabilities as $ per year for remaining years of life.
by pascalwager
Tue Sep 05, 2017 2:49 pm
Forum: Investing - Theory, News & General
Topic: Do you use lifestrategy/ asset allocation funds?
Replies: 77
Views: 14035

Re: Do you use lifestrategy/ asset allocation funds?

I don't use any of the four LS series fund-of-funds, but I do use the same four Vanguard internal funds to run my cap-weighted William F. Sharpe world bond/stock portfolio.
by pascalwager
Thu Aug 31, 2017 10:19 pm
Forum: Investing - Theory, News & General
Topic: Why go with an 80% stock / 20% bond portfolio?
Replies: 360
Views: 36118

Re: Why go with an 80% stock / 20% bond portfolio?

I was 0/100 (100% T-Bills) until age 53. Then I lump-summed all of it into 90/10. Now I have 50/38/12 at age 75.

It worked out OK, but I would start off at 100% total world stock if I had a second chance and maybe start adding world bonds when nearing retirement.
by pascalwager
Fri Aug 25, 2017 7:38 pm
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 2050

Re: Tilt away from one's home country slightly

Since the world market is currently 52/48, US/non-US, then tilting away from the US could mean, for example, going to 48/52, or even 45/55. What you're really proposing is tilting away from the world market slightly less massively/dramatically.
by pascalwager
Fri Aug 25, 2017 3:34 pm
Forum: Investing - Theory, News & General
Topic: Tilt away from one's home country slightly
Replies: 18
Views: 2050

Re: Tilt away from one's home country slightly

Do you want to invest--or make bets? If you want to invest, then use world market capitalization proportions (currently 52/48, US/non-US). If you want to make bets, then overweight either US or non-US, and you can probably discover reasons to do either. But how do you quantify them?
by pascalwager
Fri Aug 25, 2017 12:30 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 35
Views: 4635

Re: Total World (VT, VTWSX) Tilt? Simplicity...

I think pascalwager provided that link because it ended with this: A better approach may be to split your holdings between just two funds, which will allow you to participate in both US and foreign stocks but do so with higher returns. For example, you can own US stocks through the Vanguard 500 Ind...
by pascalwager
Fri Aug 25, 2017 12:07 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 35
Views: 4635

Re: Total World (VT, VTWSX) Tilt? Simplicity...

I think pascalwager provided that link because it ended with this: A better approach may be to split your holdings between just two funds, which will allow you to participate in both US and foreign stocks but do so with higher returns. For example, you can own US stocks through the Vanguard 500 Ind...
by pascalwager
Thu Aug 24, 2017 9:14 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 35
Views: 4635

Re: Total World (VT, VTWSX) Tilt? Simplicity...

Doublebass wrote: I'm almost inclined to just drop the tilts and split my equities 50/50 between TSM and Total World. I know most people would just label that 75% Domestic and 25% International, but that's not always the case. If I held 50% TSM and 50% total World then half of my money would go towa...
by pascalwager
Wed Aug 23, 2017 10:52 pm
Forum: Investing - Theory, News & General
Topic: Total World (VT, VTWSX) Tilt? Simplicity...
Replies: 35
Views: 4635

Re: Total World (VT, VTWSX) Tilt? Simplicity...

Doublebass, You might be a candidate for the active Vanguard Global Equity Fund (VHGEX). It's performed better than Vanguard Total World Stock Fund over the last ten years and it would take certain vexing decisions out of your hands. The team of seven professional managers decides when it tilts towa...
by pascalwager
Mon Aug 21, 2017 11:19 am
Forum: Investing - Theory, News & General
Topic: Boston Globe: Smart Investors May be Killing Capitalism
Replies: 44
Views: 4762

Re: Boston Globe: Smart Investors May be Killing Capitalism

Boston Globe's screed against index funds: http://www.bostonglobe.com/business/2017/08/18/smart-investors-may-killing-capitalism/61SGI74x2L9aW5BGYhVjaM/story.html Here’s the basic problem: When investors own little bits of everything, they lose interest in the kind of fierce market competition that...
by pascalwager
Sat Aug 19, 2017 12:18 am
Forum: Investing - Theory, News & General
Topic: Going passive is an active decision
Replies: 32
Views: 2835

Re: Going passive is an active decision

There are some here who say that if you deviate whatsoever from a global cap weighted stock position that you are an active investor. I don't buy that. What I do buy into are the 'cost matters hypothesis' and indexes. William F. Sharpe, a major proponent of passive investing, recognizes the possibl...
by pascalwager
Thu Aug 17, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

Pascalwager, Written by longinvest: I use total-market index funds to invest into four selected types of investment-grade securities: domestic stocks, international stocks, domestic nominal bonds, and domestic inflation-indexed bonds. I do not include international bonds (currency-hedged or not) in...
by pascalwager
Thu Aug 17, 2017 12:53 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

Written by longinvest: I use total-market index funds to invest into four selected types of investment-grade securities: domestic stocks, international stocks, domestic nominal bonds, and domestic inflation-indexed bonds. I do not include international bonds (currency-hedged or not) into my portfoli...
by pascalwager
Tue Aug 15, 2017 11:46 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 84
Views: 16903

Re: Bill Sharpe's preferred portfolio

Note: This is a copy of a post I made in another thread: "Bonds: Ballast for your portfolio" . I think that it is relevant to the topic of this thread. ------------ I recently found this passage in Sharpe's RISMAT-7 to be pretty compelling: To see this, consider a simple policy calling for a mix of...
by pascalwager
Tue Aug 15, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Spreadsheet for Tracking the Global Market Portfolio
Replies: 14
Views: 1542

Re: Spreadsheet for Tracking the Global Market Portfolio

. . . This portfolio idea, with the more complete international fund, looks a lot like the Vanguard Target funds and LifeStrategy funds. Closest to it is probably Vanguard LifeStrategy Moderate Growth Fund (VSMGX). Yes, but the Target and LS Funds allocations are not market-weighted. You probably a...
by pascalwager
Tue Aug 15, 2017 11:10 pm
Forum: Investing - Theory, News & General
Topic: Spreadsheet for Tracking the Global Market Portfolio
Replies: 14
Views: 1542

Re: Spreadsheet for Tracking the Global Market Portfolio

The latest RISMAT update is May 2017, but Sharpe didn't update the Vanguard int'l stock fund to the newer global all-cap index version, which surprised me. Personally, I purchased the newer all-cap fund with no hesitation.