Search found 2264 matches

by dumbmoney
Thu Oct 11, 2018 5:13 am
Forum: Investing - Theory, News & General
Topic: "Do not invest with Vanguard if you are a market-timer." - Vanguard
Replies: 12
Views: 2576

Re: "Do not invest with Vanguard if you are a market-timer." - Vanguard

I’d say Vanguard does, in fact, have a high tolerance for market timing.... Vanguard Group begins an investing experiment that pushes free ETF trading to its limit https://www.google.com/amp/s/www.cnbc.com/amp/2018/08/01/vanguard-group-begins-key-experiment-in-the-new-era-of-free-investing.html Agr...
by dumbmoney
Fri Oct 05, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Balanced Index Fund Lovers?
Replies: 43
Views: 4675

Re: Vanguard Balanced Index Fund Lovers?

The nice thing about this fund is that it's pretty much guaranteed to stay as-is (or very close), unlike other all-in-one funds which may be jazzed up every few years with new asset classes.
by dumbmoney
Sat Sep 29, 2018 6:04 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Exploring Buyback’s Impacts
Replies: 19
Views: 1912

Re: Larry Swedroe: Exploring Buyback’s Impacts

Buybacks are less efficient than dividends because "Wall Street" (brokers, market makers, etc) gets a cut. Dividends are direct cash payments and don't feed middlemen. Other differences are in the realm of fuzzy things like tradition and investor psychology - possibly important, but hard to get a ha...
by dumbmoney
Fri Sep 21, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: S&P sectors are changing
Replies: 8
Views: 693

Re: S&P sectors are changing

This is good news for people who worry about sector weights. You are now more diversified, without having to do anything. :-)
by dumbmoney
Sun Sep 02, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4484

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

Thanks for reply. But the link https://obliviousinvestor.com/the-cost-to-an-index-fund-of-turnover-in-an-index/ shows 'There are two types of costs imposed on an index fund when stocks move in or out of the index that the fund tracks: transaction costs and front-running costs.'". " As such, transac...
by dumbmoney
Sun Sep 02, 2018 7:32 pm
Forum: Personal Consumer Issues
Topic: Do-It-Yourself Wiring the Home With Ethernet: What to Buy
Replies: 54
Views: 3352

Re: Do-It-Yourself Wiring the Home With Ethernet: What to Buy

I have been thinking of doing something similar. However, my new home (built in the 90's) is fully wired with telephone cables that I believe I will never use. I thought I might just pull the ethernet cables through and replace the phone wires. That's what I did. I haven't used POTS in over 10 years.
by dumbmoney
Sun Sep 02, 2018 9:23 am
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4484

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

Based on my understanding, all turnover cost can be reflected by the the difference the fund return and benchmark return. https://obliviousinvestor.com/the-cost-to-an-index-fund-of-turnover-in-an-index/. This said 'As such, transaction costs would show up in the form of “tracking error” (i.e., the ...
by dumbmoney
Sun Sep 02, 2018 5:19 am
Forum: Investing - Theory, News & General
Topic: Is Small-Cap Value's 47.2% Turnover Rate Troubling?
Replies: 28
Views: 4484

Re: Is Small-Cap Value's 47.2% Turnover Rate Troubling?

Based on my understanding, all turnover cost can be reflected by the the difference the fund return and benchmark return. https://obliviousinvestor.com/the-cost-to-an-index-fund-of-turnover-in-an-index/. This said 'As such, transaction costs would show up in the form of “tracking error” (i.e., the ...
by dumbmoney
Fri Aug 31, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: "Mutual Funds and Securities Lending"
Replies: 32
Views: 1748

Re: "Mutual Funds and Securities Lending"

And in fact, Fidelity has promised (claimed, if you believe them) that all the returns of Securities Lending go to the fund. All the returns _after_ expenses, right? So it doesn't imply that Fidelity can't profit from lending, unless all the relevant services are outsourced. If they are using one o...
by dumbmoney
Fri Aug 31, 2018 5:53 pm
Forum: Investing - Theory, News & General
Topic: "Mutual Funds and Securities Lending"
Replies: 32
Views: 1748

Re: "Mutual Funds and Securities Lending"

If a mutual fund has a 0 ER, like Fidelity's two funds now, does it really matter to the individual investor which of their revenue streams is covering those funds' costs? If you wanted to think of it as, say, their credit card business is funding the 0 ER funds operating costs, and ownership is ju...
by dumbmoney
Fri Aug 31, 2018 1:15 am
Forum: Investing - Theory, News & General
Topic: "Mutual Funds and Securities Lending"
Replies: 32
Views: 1748

Re: "Mutual Funds and Securities Lending"

triceratop wrote:
Thu Aug 30, 2018 8:56 pm
And in fact, Fidelity has promised (claimed, if you believe them) that all the returns of Securities Lending go to the fund.
All the returns _after_ expenses, right? So it doesn't imply that Fidelity can't profit from lending, unless all the relevant services are outsourced.
by dumbmoney
Wed Aug 08, 2018 9:36 pm
Forum: Investing - Theory, News & General
Topic: (NEW) WisdomTree 90/60 U.S. Balanced Fund
Replies: 141
Views: 9263

Re: (NEW) WisdomTree 90/60 U.S. Balanced Fund

"100/100" funds have been around for a while. They work by investing in bonds and using S&P 500 futures to simulate a 100% stock position, with the goal of outperforming a vanilla S&P 500 fund.

Examples:
Pimco StocksPLUS (PSTKX)
DFA Enhanced US Large Co. Portfolio (DFELX)
by dumbmoney
Fri Jul 20, 2018 3:44 am
Forum: Investing - Help with Personal Investments
Topic: Why Does Vanguard Emerging Markets not Tie to Market Caps?
Replies: 7
Views: 907

Re: Why Does Vanguard Emerging Markets not Tie to Market Caps?

Most indexes are basically trying to track the performance of active investors as a group. That's what makes them suitable as a benchmark. Float adjustment brings them closer to their objective, since only the float is held by the investors they are trying to track.
by dumbmoney
Fri Jul 13, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Look Past Expense Ratios
Replies: 71
Views: 6721

Re: Larry Swedroe: Look Past Expense Ratios

...The point is that market beta is just another factor, no more and no less... I think it is very different from other factors, in two aspects: ease of access, and coexistence with the efficient market hypothesis. More simply, beta is the only factor that investors as a group are exposed to. There...
by dumbmoney
Thu Jun 21, 2018 1:49 am
Forum: Investing - Theory, News & General
Topic: Effect of Index funds on Market Efficiency
Replies: 19
Views: 1496

Re: Effect of Index funds on Market Efficiency

It could go either way, it depends whether indexing is growing more at the expense of unskilled traders (who are a source of inefficiency) or more at the expense of skilled pros.
by dumbmoney
Mon Jun 11, 2018 6:42 am
Forum: Personal Finance (Not Investing)
Topic: What does "tap into" the Social Security trust fund mean?
Replies: 29
Views: 2550

Re: What does "tap into" the Social Security trust fund mean?

The treasuries held by SS weren't bought on the open market and can't be sold on the open market. So it's not quite like the "real" (marketable) treasuries held by the Fed. SS doesn't have that level of independence.
by dumbmoney
Sun Jun 10, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: John C. Bogle explains his interpretation of RTM (reversion to mean)
Replies: 11
Views: 2444

Re: John C. Bogle explains his interpretation of RTM (reversion to mean)

With regard to active management out- or under-performance, this is best explained by the fact that the reference index doesn't perfectly mirror active managers as a group. So when an index does particularly well, active managers underperform (since any deviation from the index is bad); when the ind...
by dumbmoney
Wed May 30, 2018 2:33 pm
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6133

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it. If there is a same and orderly way to breakup the euro zone there is no need to do it...
by dumbmoney
Mon May 28, 2018 1:54 pm
Forum: Personal Consumer Issues
Topic: GFCI trips when toaster oven turned on
Replies: 33
Views: 2187

Re: GFCI trips when toast oven turned on

Another information point: When I plugged my GFCI tester into the troublesome GFCI outlet, it tripped - even before hitting the "test" button. This doesn't happen with my other GFCI outlets. I wonder if I just have a bad GFCI outlet and need to replace it? It still doesn't explain to me why turning...
by dumbmoney
Mon May 28, 2018 1:34 pm
Forum: Personal Consumer Issues
Topic: GFCI trips when toaster oven turned on
Replies: 33
Views: 2187

Re: GFCI trips when toast oven turned on

What outlets do lose power when the GFCI trips (use the test button on the GFCI)?
by dumbmoney
Mon May 28, 2018 8:17 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6133

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it. Entry and exit are not symmetrical problems in any way. In both cases, you're transit...
by dumbmoney
Mon May 28, 2018 7:56 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6133

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it. Entry and exit are not symmetrical problems in any way. In both cases, you're transit...
by dumbmoney
Sun May 27, 2018 5:32 am
Forum: Investing - Theory, News & General
Topic: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?
Replies: 92
Views: 6133

Re: German Bonds: a virtually riskless bet for an Italian investor, with no downside and a big upside possible?

A currency union is very different than a currency peg. The concept of devaluation doesn't really apply. It would take many years to leave the euro in an orderly, sane way - just as it took many years to enter it.
by dumbmoney
Thu May 24, 2018 6:01 am
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5673

Re: Rob Arnott:index Investors Buy High, Sell Low

To me the ideal passive stock market fund would be one that never, ever trades. That's even better than an index fund that trades smartly. The only downside is a gradual loss of diversification, which is meaningless over a human lifetime. Why is that ideal? Lowest cost. You mean like the Voya Corpo...
by dumbmoney
Fri May 18, 2018 9:35 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5673

Re: Rob Arnott:index Investors Buy High, Sell Low

To me the ideal passive stock market fund would be one that never, ever trades. That's even better than an index fund that trades smartly. The only downside is a gradual loss of diversification, which is meaningless over a human lifetime. Why is that ideal? Lowest cost. So it never bought Amazon or...
by dumbmoney
Fri May 18, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: Rob Arnott:index Investors Buy High, Sell Low
Replies: 51
Views: 5673

Re: Rob Arnott:index Investors Buy High, Sell Low

To me the ideal passive stock market fund would be one that never, ever trades. That's even better than an index fund that trades smartly. The only downside is a gradual loss of diversification, which is meaningless over a human lifetime.
by dumbmoney
Fri May 18, 2018 8:00 pm
Forum: Personal Consumer Issues
Topic: Xfinity Mobile phone service
Replies: 10
Views: 1296

Re: Xfinity Mobile phone service

It's not actually "free" like they say, because they tack on mystery fees. Still, it's a good deal. You get 100mb of free data per month, which is good because the LG phone they sell uses data even when data is supposedly off. (Do all Android phones have such leakage or only LG, I wonder?)
by dumbmoney
Sat Apr 28, 2018 2:30 pm
Forum: Investing - Theory, News & General
Topic: Can indexing be considered as active management ?
Replies: 21
Views: 1778

Re: Can indexing be considered as active management ?

P.S. Another way to look at this. If indexing is active management, then what, exactly , would be "passive management?" How about a stock fund that never trades? So instead of the 3-5% turnover typical of large cap index funds, it would have 0% turnover. Seems more "passive". Downside? Over time it...
by dumbmoney
Thu Apr 12, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2229

Re: Shorting the actively managed mutual fund market

It's not possible to short a mutual fund. You can short ETFs. But I suppose if any were really juicy short targets, they would be hard (expensive) to borrow. It's interesting that fund managers tolerate this given that short sellers are earning fees that would otherwise go to the manager (maybe the...
by dumbmoney
Thu Apr 12, 2018 11:20 am
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2229

Re: Shorting the actively managed mutual fund market

There is very good evidence, e.g. in Morningstar's "investor returns" versus "fund returns," that most actual fund investors fail to achieve the "hypothetical growth" returns they would have achieved by staying the course in the fund. It's not at all clear what is really happening, nor why it isn't...
by dumbmoney
Thu Apr 12, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 2229

Re: Shorting the actively managed mutual fund market

The goal of most indexes is to imitate active managers (of a certain style) as a group. They do so imperfectly, but that's the general idea. So you can approximate doing the opposite of active managers by...shorting index funds.
by dumbmoney
Mon Apr 02, 2018 12:39 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Indexing Fuss Unwarranted
Replies: 16
Views: 3284

Re: Larry Swedroe: Indexing Fuss Unwarranted

Active management is profitable, just not for investors. But that's how it should be! If the world were in perfect equilibrium, active and passive funds would have the same return. The reason is simple: the risk (for a diversified investor) is the same.
by dumbmoney
Sat Mar 03, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: How to Global ETFs 'readjust' to reflect market conditions
Replies: 9
Views: 834

Re: How to Global ETFs 'readjust' to reflect market conditions

Unfortunately, transaction costs are not included in the expense ratio and not easily visible. (I think funds keep it a secret). You can tell that they are negligible in index funds simply by observing how closely they succeed in tracking their index. Not really, because index funds generally trade...
by dumbmoney
Thu Feb 01, 2018 2:49 am
Forum: Personal Consumer Issues
Topic: WHY do wireless routers need periodic reboots?
Replies: 117
Views: 10039

Re: WHY do wireless routers need periodic reboots?

Worse than having to reboot is having to "factory reset" a router. I have a DLink router and it apparently has a _cumulative_ limit on the number of devices that it supports. And once you hit that (small, like 25 or something) limit, it stops working properly and you have to factory reset it to clea...
by dumbmoney
Tue Jan 23, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard chief says "You will never see a bitcoin fund from us"
Replies: 33
Views: 3380

Re: Vanguard chief says "You will never see a bitcoin fund from us"

https://stripe.com/blog/ending-bitcoin-support "Given the overall success that the Bitcoin community has achieved...we’re certainly happy to see any novel, ambitious project do so well...This has led to Bitcoin becoming less useful for payments, however...Empirically, there are fewer and fewer use c...
by dumbmoney
Fri Jan 05, 2018 7:02 am
Forum: Investing - Theory, News & General
Topic: Hypothetical question: Will a man who lives forever own the world?
Replies: 23
Views: 2064

Re: Hypothetical question: Will a man who lives forever own the world?

You're describing a miser. Most people aren't misers, and misers don't live forever.
by dumbmoney
Thu Dec 07, 2017 1:59 am
Forum: Personal Consumer Issues
Topic: Firefox upgrade broke my add-on, switched to Waterfox
Replies: 28
Views: 4538

Re: Firefox upgrade broke my add-on, switched to Waterfox

When I learned this was coming I switched to Firefox 52 ESR (ESR=Extended Support Release). Hopefully by the time 52 ESR is no longer supported, the add-on situation will have improved.
by dumbmoney
Sat Oct 28, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: Do Investors really underperform their investments
Replies: 45
Views: 4577

Re: Do Investors really underperform their investments

I thought that all of the investors collectively owned all of the securities at all times. If that's the case, I don't understand how the investors collectively can do better or worse than the relevant markets, at least before taxes and management and transaction costs. The set of securities isn't ...
by dumbmoney
Wed Sep 06, 2017 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bought crypto currency
Replies: 67
Views: 5686

Re: Bought crypto currency

The people who buy the "coins" don't own the computer hardware etc that they are funding. It doesn't matter how cool the technology is - you don't own it. It's not an investment, it's a donation.
by dumbmoney
Mon May 29, 2017 2:13 pm
Forum: Personal Consumer Issues
Topic: Updates on the status of Linux
Replies: 129
Views: 14280

Re: Updates on the status of Linux

It used to be that Windows was more stable than Linux, but with Win10 I'm not sure. Microsoft is making major changes (that you can't refuse) far more frequently than in the past. Meanwhile you can stay on an Ubuntu release for 5 years if you want.
by dumbmoney
Tue Dec 27, 2016 1:35 am
Forum: Personal Consumer Issues
Topic: Scary experience with Tinypic + Flash
Replies: 8
Views: 1676

Re: Scary experience with Tinypic + Flash

In my browser, I switched Flash from "always enabled" to "ask to activate". This allows me to decide which sites get to use Flash and which don't. With this setup, Flash will be blocked by default, but you have the option to activate it on sites you trust (like Pandora). That's convenient, but if y...
by dumbmoney
Mon Dec 26, 2016 6:55 pm
Forum: Personal Consumer Issues
Topic: Scary experience with Tinypic + Flash
Replies: 8
Views: 1676

Re: Scary experience with Tinypic + Flash

Some sites will use flash if they detect you have it installed, otherwise they won't require it. So if you just disable flash you may be fine.
by dumbmoney
Fri Dec 09, 2016 4:42 am
Forum: Investing - Theory, News & General
Topic: Did Buffett really believe the stock market went nowhere from 1964 to 1981?
Replies: 25
Views: 3752

Re: Did Buffett really believe the stock market went nowhere from 1964 to 1981?

These articles may help clarify: http://archive.fortune.com/magazines/fortune/fortune_archive/1999/11/22/269071/index.htm http://archive.fortune.com/magazines/fortune/fortune_archive/2001/12/10/314691/index.htm Basically Buffett likes to look at the ratio of stock market value to GDP as an indicator...
by dumbmoney
Sat Oct 08, 2016 1:22 am
Forum: Investing - Theory, News & General
Topic: BlackRock Cuts Prices on ETFs
Replies: 62
Views: 7084

Re: BlackRock Cuts Prices on ETFs

You can tell that ETFs aren't losing much to trading costs, because they track their indexes well after expenses. Unfortunately no. An index fund that trades in perfect sync with the index (which is easy - use market-on-close orders) will track the index regardless of market impact. Market impact c...
by dumbmoney
Fri Jun 24, 2016 7:50 am
Forum: Investing - Theory, News & General
Topic: don't deal in GBP pound sterling today (June 23 2016)
Replies: 46
Views: 4649

Re: don't deal in GBP pound sterling today (June 23 2016)

Think. This is a negotiation between 2 powers: EU and the UK. Access to markets is a bargaining chip. Access goes two ways. Trade benefits both parties (although there are clear distributional issues). While emotionally satisfying, it would be economically foolhardy for the EU to restrict trade. OT...
by dumbmoney
Mon Apr 04, 2016 5:32 pm
Forum: Personal Consumer Issues
Topic: led vs cfl
Replies: 102
Views: 9268

Re: led vs cfl

Has anybody found high lumen LED bulbs? With CFL, you can get big cfl bulbs with high lumens. For example, this was a double-d CFL light which I converted in to LED ring. It is nice but still not as bright as the original CFL. Something like this? Feit C4000/5K/LED 300W Replacement 5000K Non-Dimmab...
by dumbmoney
Sat Jan 09, 2016 12:55 pm
Forum: Personal Consumer Issues
Topic: Smartphone security 101?
Replies: 45
Views: 4703

Re: Smartphone security 101?

Set up everything involving payments to require a password or number each time. That protects you not only from strangers, but also from accidental purchasing.
by dumbmoney
Sat Dec 12, 2015 4:11 am
Forum: Investing - Theory, News & General
Topic: [Third Avenue liquidates its high-yield bond fund]
Replies: 130
Views: 12060

Re: [Third Avenue liquidates its high-yield bond fund]

Presumably what happened is that the NAV of the fund became detached from reality, which could happen if the fund holds bonds that don't routinely trade, and aren't very similar to bonds that do routinely trade. This triggered a "run" on the fund by the more engaged/sophisticated investors. Sellers ...
by dumbmoney
Fri Nov 27, 2015 2:38 pm
Forum: Personal Consumer Issues
Topic: Perfectly legal ways you can still get Windows 7 cheap (or even free)
Replies: 15
Views: 2898

Re: Perfectly legal ways you can still get Windows 7 cheap (or even free)

Unfortunately, what my wife and I discovered, when, scared of Vista, when she pounced on one of the last available retail PCs with Windows XP preinstalled... the problem is that Microsoft can make life miserable for anyone running an older version of Windows than Microsoft wants people to use. I am...