Search found 5079 matches

by JoMoney
Thu Jun 21, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Feel like I'm sinking money into international
Replies: 10
Views: 278

Re: Feel like I'm sinking money into international

xenochrony wrote:
Thu Jun 21, 2018 11:16 am
.... Remember the buy low sell high mantra? :happy
Of course, there's an opposing view explained by a Will Rogers quote that trend/momentum investors like:
... If it don't go up, don't buy it.
by JoMoney
Thu Jun 21, 2018 11:12 am
Forum: Investing - Help with Personal Investments
Topic: Feel like I'm sinking money into international
Replies: 10
Views: 278

Re: Feel like I'm sinking money into international

I have a one fund equity portfolio, I don't have an international allocation but that's not my point, when I had a portfolio of lots of individual stocks seeing the individual ups and downs would influence me in weird ways. I don't know how large your international allocation is, but if you think yo...
by JoMoney
Thu Jun 21, 2018 11:05 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 39
Views: 982

Re: "Never time the market" vs. lump sum investment

...OTOH, if you just invest 10% of your cash every month, that will probably work just as well as anything else although it may not work out as the best thing to do. That's the answer: Don't worry about doing the best thing now because the best thing can only be known in hindsight which you really ...
by JoMoney
Thu Jun 21, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: Effect of Index funds on Market Efficiency
Replies: 14
Views: 728

Re: Effect of Index funds on Market Efficiency

...After all, I recall that one of the assumptions of index fund investments is efficient market hypothesis, all information is priced into the market... No. http://marriottschool.net/emp/SRT/passive.html ...If prices in the stock market are not efficient, and investing is a skill-based game, then ...
by JoMoney
Thu Jun 21, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: "Never time the market" vs. lump sum investment
Replies: 39
Views: 982

Re: "Never time the market" vs. lump sum investment

I don't think dollar-cost-averaging is such a bad deal. I do it with my paycheck even though I could leverage in now and pay it off over the year. That said, all of my money is currently in the market, and I'm not about to take it out so that I can DCA back in. I'm guessing that if you're not comfor...
by JoMoney
Thu Jun 21, 2018 8:35 am
Forum: Investing - Theory, News & General
Topic: Is the Dow Jones Industrial Average a useful metric?
Replies: 27
Views: 1159

Re: Is the Dow Jones Industrial Average a useful metric?

I was just watching a "news" program where the host commented that the Dow is several hundred points off it's high for the year.
The commenting guest, a well regarded economist, pointed to the NASDAQ as reaching all time highs.
TV uses lousy market indicators.
by JoMoney
Wed Jun 20, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Why is Mr. Bogle so against investing internationally?
Replies: 24
Views: 2483

Re: Why is Mr. Bogle so against investing internationally?

Investing in stocks is never a "safe bet", regardless if it's domestic or international. I believe characterizing Mr. Bogle's position as being "so against" takes it a bit to far. He doesn't think it's necessary and suggests that people look at it for themselves. He even makes recommendations as the...
by JoMoney
Wed Jun 20, 2018 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: How to shelter 500k
Replies: 8
Views: 838

Re: How to shelter 500k

Probably not any good ways if you don't have "earned income". Annuities are generally a bad option for most circumstances, even the ones offered by Vanguard... but technically that might be an option that would provide a tax shelter but at a high cost, and poor tax treatment at withdrawal. https://i...
by JoMoney
Wed Jun 20, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: The Current Market
Replies: 22
Views: 1623

Re: The Current Market

marti038 wrote:
Wed Jun 20, 2018 12:48 pm
ImaDeval wrote:
Wed Jun 20, 2018 10:11 am
I've been in the market for a number of years and I've not seen anything quite like this constant up and down over so many months.
You sure about that?
:D :D :D Right? Maybe OP should be providing us with advice... of course, we don't know what number "a number of years" is.
by JoMoney
Wed Jun 20, 2018 10:43 am
Forum: Investing - Theory, News & General
Topic: The Current Market
Replies: 22
Views: 1623

Re: The Current Market

We reached a high on 09/01/2000 that didn't reach a new high (including dividends) until 10/23/2006 We reached a high on 10/02/2007 that didn't reach a new high (including dividends) until 03/15/2012 We reached a high on 07/20/2015 that didn't reach a new high (including dividends) until 04/18/2016 ...
by JoMoney
Tue Jun 19, 2018 8:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Fund Yield reached 1.99% today
Replies: 12
Views: 2696

Re: Vanguard Prime Fund Yield reached 1.99% today

There are FDIC banks and credit unions offering 2% (introductory) rates as well https://www.virtualbank.com/rates https://www.secumd.org/more/money-market.aspx https://www.northpointe.com/banking/rates/ Positive yields look good. Hard to say this is good for savers when looking at inflation, but it'...
by JoMoney
Tue Jun 19, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: Are large cap stocks more internationally diversified?
Replies: 6
Views: 253

Re: Are large cap stocks more internationally diversified?

https://www.etftrends.com/april-has-bee ... -cap-etfs/
According to FactSet data, Russell 2000 companies generate 79.4% of revenue from the U.S. exposure, whereas 69.7% of the S&P 500’s revenue exposure comes from the U.S.
by JoMoney
Mon Jun 18, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 66
Views: 5133

Re: What does it mean: Rule No. 1: Never lose money

I have an anecdote about a friend's relative that withdrew tens of thousands of dollars from their bank during the 2008 crisis and hid the cash around their house/property. Shortly thereafter, they passed away and the friend who inherited the property doesn't know all the hiding spots. They know tha...
by JoMoney
Mon Jun 18, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 66
Views: 5133

Re: What does it mean: Rule No. 1: Never lose money

If you bought a 10 year Treasury bond, with the intent to hold to maturity while collecting the coupons, have you "lost money" if rates rise and the mark-to-market value falls over the course of holding the bond? If you bought an apartment complex, based on amortizing the rents you will receive (wit...
by JoMoney
Mon Jun 18, 2018 12:03 am
Forum: Investing - Theory, News & General
Topic: Very confused with the current market
Replies: 93
Views: 8253

Re: Very confused with the current market

You missed the 11% correction between 01/27/2018 and 02/08/2018

and 12.5% between 11/06/2015 and 02/11/2016
capcase wrote:
Sun Jun 17, 2018 2:34 pm
...
Please don't tell me I should not time the market. ...
Hopefully others can learn what not to do from your example.
by JoMoney
Sun Jun 17, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: Mechanisms for disappearance of factor premia -- how does it work for momentum?
Replies: 14
Views: 752

Re: Mechanisms for disappearance of factor premia -- how does it work for momentum?

Momentum investors lose when they get whipsawed too much in the process of trying to catch a trend. They can also get caught on the downturn when their strategy fails to execute at the theoretical model exit point. If/when liquidity drys up it can be very difficult to guarantee any specific executio...
by JoMoney
Sun Jun 17, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: how can i determine if Wellington only takes long stock positions?
Replies: 9
Views: 410

Re: how can i determine if Wellington only takes long stock positions?

The majority of mutual funds do not short stocks. "Long-Short" funds do exist, but with tight restrictions, and the fact that they short-sell would have to be disclosed as one of the risks in the prospectus. I see nothing in the prospectus, investment strategy, or risks associated with the Wellingto...
by JoMoney
Sun Jun 17, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3662

Re: A different theoretical view of SWR

However, I will point out one fallacy of your proposed approach. You have deterministically set your retirement as a 30-year (or some other pre-specified period). No one knows how long they will live, therefore no one knows how long they will be retired. That is exactly right. Those so-called LMP a...
by JoMoney
Sun Jun 17, 2018 7:04 am
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3662

Re: A different theoretical view of SWR

... at the age of 78, and you estimate that you have only 10 years left based on family history. Would you really be willing to stick to the plan and take out 10% every year? Probably not. If it were me, and I reached that point and I expected to need 10% of my portfolio for annual expenses I would...
by JoMoney
Sat Jun 16, 2018 12:49 pm
Forum: Investing - Theory, News & General
Topic: A different theoretical view of SWR
Replies: 63
Views: 3662

Re: A different theoretical view of SWR

Yup. But you'll still find people on this board who believe they need 50x expenses to fund 30 years :shock: When I've looked at withdrawals rates, basing it on life expectancy makes the most sense to me. In the later years you can likely use remaining balance to buy an immediate annuity to insure yo...
by JoMoney
Sat Jun 16, 2018 12:32 pm
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2475

Re: Factor-based strategy is better (winer), OK. then who are the losers?

Do non-tilters benefit from others overweighting areas like SCV? If you’re bidding up the prices, am I just paying more for that sub asset class? I’m probably not asking my question in the best manner, I’ll admit. Depends on what you consider "benefit". People who own the broad market will get the ...
by JoMoney
Sat Jun 16, 2018 8:43 am
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2475

Re: Factor-based strategy is better (winer), OK. then who are the losers?

If not, then the SCV may be arbed away like other active strategies over time. Hasn't that already happened? I tend to think the excess gains from SCV have been more related to periodic irrational valuation differences, anyway. By 2010/11 after the 2008-09 losses had been recovered, I think the val...
by JoMoney
Fri Jun 15, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 4470

Re: Flaw in Logic? CD ladder instead of bond funds

^ Keep in mind, the BND has a duration over 6 years ... you would need a CD ladder with a pretty long maturity to get close to something comparable to that.
by JoMoney
Fri Jun 15, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Flaw in Logic? CD ladder instead of bond funds
Replies: 63
Views: 4470

Re: Flaw in Logic? CD ladder instead of bond funds

I don't think it is flawed. I have grown to have a preference for CDs over bond funds. I don't think "liquidity" is even a factor with CD's, you don't have to find someone to buy a CD you just cash it in with the bank. With some banks, you can do an early withdrawal from a CD via the banks online po...
by JoMoney
Fri Jun 15, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Which boglehead rule do you break--and are ok with
Replies: 152
Views: 10870

Re: Which boglehead rule do you break--and are ok with

I think my style is still advice inspired by Jack Bogle, but there are things I do that seem to raise disagreement here: My "International" allocation is 0% I quarrel with tilters, while at the same time tilting myself- but away from small-caps and complex portfolios. I think owning a S&P 500 index ...
by JoMoney
Fri Jun 15, 2018 1:15 pm
Forum: Personal Consumer Issues
Topic: Should I take possession of a certified mail?
Replies: 151
Views: 16047

Re: Should I take possession of a certified mail?

I see lots of posts stating they wouldn't accept the letter because it likely isn't anything good. However, I can't see a scenario where not accepting the letter would create a positive outcome and many scenarios where not accepting it would lead to a negative outcome. If it is a bill for services,...
by JoMoney
Fri Jun 15, 2018 3:36 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Rediscovering The Size Effect
Replies: 36
Views: 3475

Re: Larry Swedroe: Rediscovering The Size Effect

Interesting. The S&P indices also have a bit of light touch screening with regard to profitability, and seasoning requirements before an IPO is eligible for inclusion in the index. There are studies that point to S&P's indices and that the 'Value' factor doesn't show up. Also, when looking at the av...
by JoMoney
Thu Jun 14, 2018 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gains and Tax Bracket
Replies: 14
Views: 1550

Re: Long-term gains and Tax Bracket

... For example, say I'm a single earner for 2018, and I only have a W-2 for $10,000, and LTG (long-term gains) of $50,000. This puts me in the 22% bracket. How much tax would I owe in this overly-simplified example? More specifically, how is the W-2 taxed?... Others have given you a solid answer w...
by JoMoney
Thu Jun 14, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2475

Re: Factor-based strategy is better (winer), OK. then who are the losers?

... So maybe not outperformance but perhaps a better risk-adjusted return for myself. Which is still 'outperformance', and if people believe these are stocks with lower risk (but higher risk-adjusted returns) then that advantage can become over gleaned and self-defeating too as others attempt to do...
by JoMoney
Thu Jun 14, 2018 3:04 pm
Forum: Investing - Theory, News & General
Topic: Factor-based strategy is better (winer), OK. then who are the losers?
Replies: 55
Views: 2475

Re: Factor-based strategy is better (winer), OK. then who are the losers?

People buying growth funds/stocks in the case of value factor. This is a weird question for me. If the guy who invests 100% Netflix is the winner, who is the loser? I believe in the context that the "losers" were the ones that under-performed the broad markets return, that was available to anyone a...
by JoMoney
Thu Jun 14, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]
Replies: 127
Views: 9784

Re: Interesting video from Ramsey today [How Ramsey Outperforms The Stock Market]

What Ramsey describes, especially with regard to "Aggressive Growth" and "Growth and Income" were styles and names for funds I remember seeing as options in my 401k 20+ years ago. I figured he just never caught up with modern times, and naming conventions, and is stuck in a mindset that was probably...
by JoMoney
Thu Jun 14, 2018 2:16 pm
Forum: Investing - Theory, News & General
Topic: How to Use Russell Small Cap Completeness Index Fund with SP500 to Mirror Total Stock Market.
Replies: 12
Views: 1236

Re: How to Use Russell Small Cap Completeness Index Fund with SP500 to Mirror Total Stock Market.

A completion index for the S&P 500 is about 50% mid-caps and 50% small-caps. Hard to be precise because there is no single agreed upon delineation between mid-caps and small-caps. Let's define small-caps as companies worth between 300 million to 2 billion, and mid-caps between 2 and 10 billion. Wou...
by JoMoney
Thu Jun 14, 2018 1:04 pm
Forum: Investing - Theory, News & General
Topic: Is the Dow Jones Industrial Average a useful metric?
Replies: 27
Views: 1159

Re: Is the Dow Jones Industrial Average a useful metric?

It has a longer continuous history than S&P's index, and has roughly captured the markets performance despite being an odd weighting of a haphazard assortment of stocks. It's considered a bit of a 'blue chip' index. It has options and futures that trade on the index itself as well as the individual ...
by JoMoney
Thu Jun 14, 2018 7:43 am
Forum: Investing - Theory, News & General
Topic: New JUST ETF - thoughts?
Replies: 12
Views: 645

Re: New JUST ETF - thoughts?

I think the advantage of an ETF like this, is that investors that do agree with it can choose it, and then maybe the activists who try to influence board decisions and proxy votes can stop harassing Vanguard's broad market index funds and investors to support their proxy initiatives or drop stocks t...
by JoMoney
Thu Jun 14, 2018 7:34 am
Forum: Investing - Help with Personal Investments
Topic: Russell 2000 Opinions
Replies: 8
Views: 643

Re: Russell 2000 Opinions

...I was reading some concerns on this forum regarding the Russell 2000 index. Others mentioned the tracking may have recently changed possibly for the better. I would like to be enlightened so I can make a decision to stay put or move to the DFSTX at the higher ER... I believe the criticism with t...
by JoMoney
Thu Jun 14, 2018 7:15 am
Forum: Investing - Theory, News & General
Topic: New JUST ETF - thoughts?
Replies: 12
Views: 645

Re: New JUST ETF - thoughts?

Sounds like a slightly different take on "Socially Responsible Investing".
...just Capital’s board members, who include Deepak Chopra and Arianna Huffington—seem almost designed to elicit eye-rolling and snark...
Yup.
by JoMoney
Thu Jun 14, 2018 4:43 am
Forum: Investing - Theory, News & General
Topic: How to Use Russell Small Cap Completeness Index Fund with SP500 to Mirror Total Stock Market.
Replies: 12
Views: 1236

Re: How to Use Russell Small Cap Completeness Index Fund with SP500 to Mirror Total Stock Market.

As was already mentioned, where the line is between "small" and "mid" is up to different interpretations. The Russell Small Cap Completeness Index is everything that's in the Russell 3000 (Total Stock Market) that's not in the S&P 500. Therefore is should be pretty much the same as Vanguard Extended...
by JoMoney
Wed Jun 13, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2426

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

I think it's an indication you haven't resolved what type of investor you are, if you're an active investor it may be to strict. If you're a passive investor and you find yourself trying to tweak things that frequently, you don't have accepting the markets return right either. You can be a passive ...
by JoMoney
Wed Jun 13, 2018 5:31 pm
Forum: Investing - Theory, News & General
Topic: Share buy back programs- the new dividend?
Replies: 6
Views: 563

Re: Share buy back programs- the new dividend?

A lot of buybacks don't really reduce the number of shares outstanding because they are then given to employees as compensation... Even if the net equity reduction was negative or zero after employees being given equity as compensation, it's still increasing the shareholders stake relative to the c...
by JoMoney
Wed Jun 13, 2018 5:07 pm
Forum: Investing - Theory, News & General
Topic: Share buy back programs- the new dividend?
Replies: 6
Views: 563

Re: Share buy back programs- the new dividend?

-We are not at "all time lows for dividend yields". They were lower late 90's-2000. -Buybacks have been a thing, of gradually growing impact since they were legalized in the early 1980's. -I would have to pay taxes on a cash dividend, so the effect to me is not the same. Outside of taxes, and outsid...
by JoMoney
Wed Jun 13, 2018 2:38 pm
Forum: Investing - Help with Personal Investments
Topic: Any problem opening fund "Investor", then building to "Admiral"?
Replies: 25
Views: 1582

Re: Any problem opening fund "Investor", then building to "Admiral"?

I'm not aware of any "problem" doing that. I think it's an ideal way to do it.... average in over time. Don't let the slightly higher expense ratio of the investor class funds discourage you. It's likely even smaller in dollar terms then the lower % ER on a high balance in Admiral shares. Once you'v...
by JoMoney
Wed Jun 13, 2018 2:26 pm
Forum: Personal Consumer Issues
Topic: Should I take possession of a certified mail?
Replies: 151
Views: 16047

Re: Should I take possession of a certified mail?

...unless it's a letter from rich Uncle Elmer's estate attorney, an unexpected certified letter is rarely something good. I agree with that, but I think ignoring the letter is more likely to hurt in the long term. Whatever it is, will eventually come back around. Better to start documenting your ow...
by JoMoney
Wed Jun 13, 2018 2:08 pm
Forum: Investing - Theory, News & General
Topic: The Deep History of Stock & Bond Returns
Replies: 75
Views: 4953

Re: The Deep History of Stock & Bond Returns

... It's interesting that inflation is so low. When and why did modern-era inflation set in? When money/bonds stopped being backed by a fixed physical commodity gold/silver standard. I'll add, that I'm not a proponent of a gold standard (or any other physical commodity). I think there's something t...
by JoMoney
Wed Jun 13, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: The Deep History of Stock & Bond Returns
Replies: 75
Views: 4953

Re: The Deep History of Stock & Bond Returns

I'm suspicious of even the 1.8% real return on bonds in the 1900's
Half the period had 0 real return
by JoMoney
Wed Jun 13, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Bottom hit for bond market?
Replies: 7
Views: 1636

Re: Bottom hit for bond market?

Here's a thought: You make money in bonds in the coupon yield. At maturity, you only get back the principal. Maybe you should hope people get out of bonds, so higher yields have to be offered to attract investors. If you're invested in bonds that you plan to sell before maturity, you might get a sho...
by JoMoney
Wed Jun 13, 2018 5:00 am
Forum: Investing - Theory, News & General
Topic: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed
Replies: 27
Views: 2426

Re: 1 Year Rule - Not allowed to execute new investment strategy until 1 year has passed

I think it's an indication you haven't resolved what type of investor you are, if you're an active investor it may be to strict. If you're a passive investor and you find yourself trying to tweak things that frequently, you don't have accepting the markets return right either.
by JoMoney
Wed Jun 13, 2018 4:13 am
Forum: Investing - Help with Personal Investments
Topic: Why don't we index the Nasdaq too?
Replies: 16
Views: 1992

Re: Why don't we index the Nasdaq too?

Just wondering.. we index the TSM, the S&P500, the TISM.. why not the Nasdaq? Fidelity has a fund that does that FWIW. In your own statement, you gave an example of an index fund that does. So quite obviously people do. Who is this "we" you speak of? What is the defining characteristic that defines...