Search found 128 matches

by Aish
Fri Nov 04, 2016 11:11 pm
Forum: Personal Investments
Topic: Update on CCFs [Collateralized Commodities Futures]
Replies: 17
Views: 2879

Re: Update on CCFs [Collateralized Commodities Futures]

Why would you need a proxy for an inflation hedge when you can just directly buy I-Bonds or TIPS?
by Aish
Sat Apr 02, 2016 7:23 pm
Forum: Investing - Theory, News & General
Topic: Who needs Money Market accounts any more?
Replies: 55
Views: 8670

Re: Who needs Money Market accounts any more?

My assertion is that there is a difference between Money Market accounts and regular checking accounts. I proved it to myself by experimenting with my Ally accounts. Perhaps checking accounts also have a grace period they could invoke, but mine goes instantly. L. The US ACH system is an overnight, ...
by Aish
Sun Mar 20, 2016 4:42 pm
Forum: Investing - Theory, News & General
Topic: the big theory as to why high beta stocks have been huge disappointments???
Replies: 7
Views: 1147

Re: the big theory as to why high beta stocks have been huge disappointments???

High beta stocks tend to do well in REVERSALS from bear to bull market. During such reversals the stocks that have done the worst tend to do the best. That's when MOM tends to get crushed as it's short the high beta stocks and long the low beta stocks. But that's about it. The prices are already hi...
by Aish
Thu Mar 17, 2016 9:24 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

I think another way to maybe construct this, but without necessarily using margin for bonds is potentially buying LEAPs deep ITM (delta=1) on the S&P 500. They're priced at very close to 0 time value when you consider interest rates and dividends. Also, it has the benefit of not forcing a margin cal...
by Aish
Thu Mar 03, 2016 8:25 pm
Forum: Investing - Theory, News & General
Topic: Under the hood of 5 multifactor funds
Replies: 44
Views: 5890

Re: Under the hood of 5 multifactor funds

Thanks for the article, what are your thoughts on multifactor funds? Do you use any?
by Aish
Thu Feb 18, 2016 3:09 pm
Forum: Investing - Theory, News & General
Topic: Does VT Have an Implicit Re-balancing Bonus over VTI+VXUS?
Replies: 11
Views: 2153

Re: Does VT Have an Implicit Re-balancing Bonus over VTI+VXUS?

Since, the respective indices are all total market indices (for the markets they track) and are cap-weighted, there is actually no re-balancing needed at all for any of them. Even for VTI and VXUS, if you initially contribute into VTI and VXUS at correct %'s according to market cap, you would never ...
by Aish
Mon Feb 15, 2016 10:04 am
Forum: Investing - Theory, News & General
Topic: Chasing Hot Returns in ‘Smart Beta’ Can Be Dumb- Jason Zweig in WSJ
Replies: 21
Views: 2458

Re: Chasing Hot Returns in ‘Smart Beta’ Can Be Dumb- Jason Zweig in WSJ

Are we lumping the Fama and French value and size premium factors into the "Smart Beta" category? It's a slippery term http://www.investopedia.com/terms/s/smart-beta.asp more about marketing than anything else. Is the dumb part looking for factors under every mattress to invest in or is Zweig sayin...
by Aish
Sun Feb 14, 2016 7:43 pm
Forum: Investing - Theory, News & General
Topic: Chasing Hot Returns in ‘Smart Beta’ Can Be Dumb- Jason Zweig in WSJ
Replies: 21
Views: 2458

Chasing Hot Returns in ‘Smart Beta’ Can Be Dumb- Jason Zweig in WSJ

A particularly insightful article that I thought people here would enjoy. It makes me reconsider tilting in my own portfolio. Some interesting quotes: "some smart-beta techniques have outperformed mainly by becoming dangerously expensive" "Morningstar [...] estimates that $72.9 billion in new money ...
by Aish
Sun Jan 17, 2016 9:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard Global Balanced Index Fund
Replies: 10
Views: 2347

Re: Vanguard Global Balanced Index Fund

There is a chance that Vanguard may eventually scrap Vanguard Total Stock and Vanguard Total International in the LifeStrategy and Target Retirement funds and instead use Vanguard Total World.
by Aish
Sat Jan 09, 2016 7:57 am
Forum: Investing - Theory, News & General
Topic: Small value underperformance, DFA
Replies: 106
Views: 13587

Re: Small value underperformance, DFA

Daniel is the only person I have read who is willing to call it out and go against the tide. To get the real Small Value Tilt you have to go through a DFA Advisor and buy DFA funds to get the "Secret Sauce" which then does not outperform plain indexing Criticism of small and value tilts is common o...
by Aish
Mon Dec 14, 2015 10:09 pm
Forum: Investing - Theory, News & General
Topic: Check-In on Emerging Market Sentiment
Replies: 57
Views: 6868

Re: Check-In on Emerging Market Sentiment

EmergDoc wrote:Anybody got a 4th EM ETF suggestion in case I need to get out of this in the next couple of weeks?
SCHE (Schwab's offering) seems decent as a 4th choice.
by Aish
Fri Dec 11, 2015 8:54 pm
Forum: Investing - Theory, News & General
Topic: "Vanguard’s new global factor investing ETFs" (Monevator.com, 12-10-15)
Replies: 4
Views: 1391

Re: "Vanguard’s new global factor investing ETFs" (Monevator.com, 12-10-15)

Surprised Vanguard doesn't have similar ETFs in US. Only thing we have is global minimum volatility and some value plays. Would like to see some international/global value and any momentum. Maybe they introduced in the UK first because America already has some good low-cost factor ETFs from iShares ...
by Aish
Wed Oct 28, 2015 1:49 am
Forum: Investing - Theory, News & General
Topic: "Financial Advice Is Improving Across the Board"
Replies: 8
Views: 2072

Re: "Financial Advice Is Improving Across the Board"

Rekenthaler is a smart and good guy But I disagree with this statement, it just isn't true "Asset-based fees encourage financial advisors to trade, so as to justify their ongoing charges." In fact it's commissioned based that does that. AUM based fees which lower the value of the portfolio would ne...
by Aish
Tue Oct 06, 2015 6:02 pm
Forum: Investing - Theory, News & General
Topic: Finding US percentage of total market cap?
Replies: 3
Views: 454

Re: Finding US percentage of total market cap?

If you google the index data, you'll find that they're updated at end of every month. All you have to Google is "FTSE Global All Cap Index" Here's the link to the current one (published September 30th): http://www.ftse.com/Analytics/FactSheets/Home/DownloadSingleIssue/GAE?issueName=GEISLMS You'll se...
by Aish
Sun Oct 04, 2015 5:17 pm
Forum: Investing - Theory, News & General
Topic: Has Indexing Won the Asset Management Debate?
Replies: 37
Views: 4365

Re: Has Indexing Won the Asset Management Debate?

That's an interesting paper .. I'm more stuck on how much of the market by capitalisation needs to be active (and I may be being monumentally stupid here) If you imagine the passive 99% of the market held 10% Apple ... So 99% of Apple's shares are owned by passive investors ... Something happens ov...
by Aish
Mon Sep 28, 2015 9:50 am
Forum: Investing - Theory, News & General
Topic: Question about a rant by nisiprius
Replies: 17
Views: 3998

Re: Question about a rant by nisiprius

I'm a skeptic about factor investing, and everyone seems to have their own list of "the" factors, but according to MSCI, The Foundations of Factor Investing , I see that "the" six factors--the "Well-Known Systematic Factors from the Academic Research"--as opposed, I guess, to the other 75 not-so-we...
by Aish
Sat Sep 26, 2015 8:12 am
Forum: Personal Finance (Not Investing)
Topic: Men vs. Women - Spending vs. Saving
Replies: 28
Views: 3219

Re: Men vs. Women - Spending vs. Saving

I would disagree this, I think women are much better, in general, at spending household money. I'm not using personal anecdotes, but a lot of research has been done of this topic as to how to better distribute aid. The UN, and other aid organizations, have experimented with giving money directly to ...
by Aish
Tue Sep 22, 2015 6:01 pm
Forum: Investing - Theory, News & General
Topic: Indexing assures mediocre returns
Replies: 24
Views: 4281

Re: Indexing assures mediocre returns

Klarman is even one of the co-authors of the updated version, 6th edition of Security Analysis http://www.amazon.com/Security-Analysis-Edition-Foreword-Editions/dp/0071592539 I'd add you don't get to managed $30b in private assets without a good, very good, track record. Now whether that is predict...
by Aish
Tue Sep 22, 2015 1:00 am
Forum: Investing - Theory, News & General
Topic: Tilting SCV without compensating via increased fixed income allocation
Replies: 23
Views: 2614

Re: Tilting SCV without compensating via increased fixed income allocation

Larry has mentioned how some young guys at his firm were 100% SCV to maximize long-term returns. I think it's completely fine.
by Aish
Mon Sep 21, 2015 7:42 pm
Forum: Investing - Theory, News & General
Topic: Active Management for International investing?
Replies: 14
Views: 1740

Re: Active Management for International investing?

Arithmetic of active management does not change with international investing or less efficient markets.
by Aish
Mon Aug 03, 2015 8:28 pm
Forum: Investing - Theory, News & General
Topic: A Returns Spreadsheet for Bogleheads
Replies: 263
Views: 70514

Re: A Returns Spreadsheet for Bogleheads

A nice feature now that we have separate accounts would be to show the overall rate of return for each account separately.
by Aish
Sun Jul 26, 2015 2:02 am
Forum: Investing - Theory, News & General
Topic: Fear Not the Inevitable Stock Market Correction
Replies: 19
Views: 4866

Re: Fear Not the Inevitable Stock Market Correction

Good post. I believe the market needs a healthy 10% or more correction before I will commit any more new money. (BTW: as of 7-24-15, the S & P 500 is only 2.5% below its recent high). Markets rarely trade at "fair value ", but we can do a quick calculation of it to provide an objective risk/reward ...
by Aish
Fri Jul 10, 2015 11:56 pm
Forum: Investing - Theory, News & General
Topic: Rick Ferri looking to internationalize his portfolio
Replies: 507
Views: 138729

Re: Rick Ferri looking to internationalize his portfolio

Sorry LadyGeek but that was not an off-topic comment. Reading Rick's blog it is chrystal clear that he is market timing. It would be one thing to say that one wants to increase the international allocation to come closer to the US vs Global market cap or some other reason, however in his case the r...
by Aish
Thu Jul 09, 2015 12:42 am
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

Update would be pretty relevant now considering the recent volatility. All good and you're staying the course?
by Aish
Mon Jun 22, 2015 6:08 am
Forum: Investing - Theory, News & General
Topic: Wsj article today on reit investing
Replies: 34
Views: 8735

Re: Wsj article today on reit investing

What about the tax considerations on International REITs? I thought they were very tax-inefficient since you either hold them in taxable and get the foreign tax credit (while paying lots of foreign taxes) or you stick them in tax-advantaged, but now you don't get any tax credits.
by Aish
Thu Jun 18, 2015 6:53 pm
Forum: Investing - Theory, News & General
Topic: A Look Inside Jack Bogle's Office
Replies: 27
Views: 7599

Re: A Look Inside Jack Bogle's Office

It's pretty interesting that he still comes to the Vanguard office to "work" even though he's retired. What a great man.
by Aish
Mon Jun 15, 2015 7:55 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation w/Real Estate
Replies: 13
Views: 2880

Re: Asset Allocation w/Real Estate

Well notice the Yale endowment fund still only has 26% in equities I think you're overlooking the additional 19% in private equity, which would bring them up to 45%. Any idea what "absolute return" is? In general, a mutual fund seeks to produce returns that are better that its peers, its fund categ...
by Aish
Thu May 28, 2015 7:28 am
Forum: Personal Investments
Topic: Need 60k for downpayment, take from VTIAX or VTSAX?
Replies: 11
Views: 1399

Re: Need 60k for downpayment, take from VTIAX or VTSAX?

Could you also let us know your desired AA?
by Aish
Wed May 27, 2015 7:36 am
Forum: Investing - Theory, News & General
Topic: FTSE Emerging Markets Index adds China A shares
Replies: 17
Views: 4950

Re: FTSE Emerging Markets Index adds China A shares

jhfenton wrote:Is it really a diversified emerging markets fund if 50% is in one country?
To be fair, if you invest in Vanguard Total World, you could ask the same since 50% of it is in America. I think the change is fine.
by Aish
Wed May 20, 2015 9:41 am
Forum: Personal Investments
Topic: Vanguard Managed Payout Fund
Replies: 16
Views: 5639

Re: Vanguard Managed Payout Fund

Not a big fan of the composition with high ER funds. If you want a one-fund solution, I think the Target Retirement Income or the 2 more conservative LifeStrategy funds are the way to go.
by Aish
Tue Apr 28, 2015 4:20 am
Forum: Personal Consumer Issues
Topic: Marginal benefit of spending more on car
Replies: 83
Views: 10808

Re: Marginal benefit of spending more on car

That 15k would pay for 1500 hours with a trainer, 3000 hours of art classes, two family trips overseas, seven family trips in state at 300 a night hotels, 1500 albums, six of every us silver eagle ever made, 2000 ebooks, 1600 massages, ten pieces of fine jewelry, five paintings, seven new camera ki...
by Aish
Mon Apr 27, 2015 7:59 pm
Forum: Investing - Theory, News & General
Topic: Do REITs really offer effective portfolio diversification?
Replies: 108
Views: 15356

Re: Do REITs really offer effective portfolio diversificatio

Aren't International REITs very tax-inefficient because you pay the taxes overseas but have no way of recuperating those costs? At least with US REITs you can put them in tax-deferred accounts. Someone correct me on this if I'm wrong.
by Aish
Wed Apr 15, 2015 4:16 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

On #1, thanks. It obviously doesn't make sense mathematically to have a 50% margin requirement and 5x leverage. Guess I wasn't thinking straight :) And on #2, thanks as well, I understand. May I ask what you are trying to do with margin loans? I'm concerned that we're answering your questions on th...
by Aish
Tue Apr 14, 2015 4:40 pm
Forum: Personal Finance (Not Investing)
Topic: Saving for next car...stash cash in VTSMX?
Replies: 14
Views: 2797

Re: Saving for next car...stash cash in VTSMX?

I think this is a personal decision based on how much you spent on the car, interest rate and affordability. I did the opposite: I bought a car recently and I put down 40% and took out a loan for the rest even though I have cash to pay for it. The interest rate on the loan is 2%, and I can afford t...
by Aish
Tue Apr 14, 2015 4:19 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

You might be confusing margin requirement (how much money you must contribute) with maintenance margin (lower threshold of net liquidation value). There's no way to get to 5x leverage with 50% margin requirement. The most you could go is 2x, and (if maintenance margin were also 50%) you would get a...
by Aish
Tue Apr 14, 2015 1:44 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

I was thinking about how to start a leveraged portfolio with about $10k (which is the minimum to open a margin account). Do you plan on keeping the 10/90 asset allocation as you continue to contribute cash, or is it only a transitional point due to the size of the futures contract? If you do plan o...
by Aish
Mon Apr 13, 2015 6:00 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

So far, the experiment has been going well. I figure it's time to up the leverage. I'm still about a month or two away from hitting the threshold for Portfolio margin. Instead of waiting, I went ahead and picked up some futures today: 1x of each ES (e-mini S&P 500), ZB (30-year US treasury), ZN (10...
by Aish
Wed Apr 01, 2015 9:03 am
Forum: Investing - Theory, News & General
Topic: Sell American Funds for Vanguard ones?
Replies: 24
Views: 6364

Re: Sell American Funds for Vanguard ones?

I'm going to do the math on this one. Basically, if you sell right now, you'll have an immediate loss of 25% of your capital. However, if you do not sell, you'll lose about .5% every year to your ER. This varies for each fund, but I'll use .1% as the Vanguard ER even though the funds you plan on usi...
by Aish
Tue Mar 31, 2015 12:33 am
Forum: Personal Investments
Topic: What would you do now if you were all cash?
Replies: 28
Views: 4619

Re: What would you do now if you were all cash?

bowtie wrote:So dca is better because of possible downturns or it helps keep AA more level?
It's not better (well, it maybe for some peoples risk appetite); it's just different. It helps you avoid a huge market crash right after you invest all your money.
by Aish
Wed Mar 25, 2015 9:09 pm
Forum: Investing - Theory, News & General
Topic: Vanguard HealthCare Fund
Replies: 68
Views: 23686

Re: Vanguard HealthCare Fund

Maybe it really is as simple as the increasing aging population is guaranteed to need more healthcare.That is a fact,not an opinion or a hopeful projection.Now should that translate into a market beating return going forward? Maybe it shouldn't, since investors are already aware of this information...
by Aish
Thu Mar 19, 2015 9:01 pm
Forum: Investing - Theory, News & General
Topic: International increase in Target Retirement & LifeStrategy
Replies: 235
Views: 47671

Re: International increase in Target Retirement & LifeStrate

Everything since has been a move towards the global market weight . Ok there could be worse choices for a single fund for my spouse. But, I don't want a global weighted fund - if they are going to get these funds to be global weighted they should just do it and stick to it. Those who want that will...
by Aish
Tue Mar 17, 2015 3:10 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

If you think the FFR is going to be 4% in the foreseeable future, I would suggest shorting bonds, not buying them. I'm not sure what exactly you understand from Rob's post, but Rob has calculated that with a .5% borrowing premium and 5x leverage, margin investing is beneficial if the Fed Fund rate ...
by Aish
Tue Mar 17, 2015 12:02 pm
Forum: Personal Investments
Topic: Why Funds Over ETFs?
Replies: 57
Views: 8059

Re: Why Funds Over ETFs?

Another thing to note is ease of transaction moving money between accounts. If I want to move $1000 of my Total Stock Market from my taxable account into my Roth IRA as a contribution, it's much easier to do so with the mutual fund. I click a couple buttons and it goes through with that day's trade...
by Aish
Fri Mar 13, 2015 7:10 pm
Forum: Investing - Theory, News & General
Topic: Wealthfront - worth 25 basis points??
Replies: 22
Views: 4495

Re: Wealthfront - worth 25 basis points??

$2,500 a year. In 10 years that is $25,000 plus opportunity costs. For a $1 million portfolio, it's a ten year cost of $25,000 only at zero percent return. The Wealthfront fee hurts your compounded return. At 4%, you lose $35,000. At 8%, it will cost you almost $50,000 after ten years. Going forwar...
by Aish
Fri Mar 13, 2015 9:19 am
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

This post is quite long, so I apologize if this has already been brought up. I don't think that this post is short-sighted due to the recent bull market. However, I do think margin investing appears quite favorable due to the low fed fund rate (.11%). I decided to calculate the annualized fed fund r...
by Aish
Wed Mar 11, 2015 8:23 am
Forum: Investing - Theory, News & General
Topic: Lobbying for a 401(k) change at work - savings potential?
Replies: 7
Views: 1023

Re: Lobbying for a 401(k) change at work - savings potential

I've approached my HR department and their representative from Northwestern Mutual on three different occasions. On my first attempt, I requested index funds be added and eventually they were. However, the option they added was Nuveen Equity Index (FADSX) at .98% ER. woof. My second attempt was dur...
by Aish
Mon Mar 09, 2015 11:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard et al disintermediated?
Replies: 39
Views: 4333

Re: Vanguard et al disintermediated?

columbia wrote:I expect VTSAX to be <= .02% in my lifetime.
Someone is proposing to beat that?
The .05% ER on VTSAX is irrelevant, in my opinion, given that their security lending has out-earned the costs of the fund. It beat the benchmark by .02% according to the prospectus.
by Aish
Sun Mar 08, 2015 9:28 pm
Forum: Investing - Theory, News & General
Topic: Should I use margin to buy a balanced fund?
Replies: 930
Views: 259503

Re: Should I use margin to buy a balanced fund?

Digging more into treasuries, I'm finding that the maintenance margin % is significantly lower. Lower is better. For example, it's 25% for a Reg T margin account. It varies by asset type in a portfolio margin account. The more diverse the asset and less risky, the lower the maintenance margin %. Be...