Search found 626 matches

by selters
Wed Jan 20, 2016 7:35 pm
Forum: Investing - Theory, News & General
Topic: Anyone shifting their AA?
Replies: 91
Views: 9162

Re: Anyone shifting their AA?

Let us do as simple example of the strategy. Say the high of VTI is 110. You invest in a 60:40 mix with $100 so $60 of VTI and $40 of BND. Let us just take BND out of the equation and assume it stays flat. VTI drops 20% to 88 before recovering 25% back to 110. 1. No rebalancing At the end you still...
by selters
Wed Jan 20, 2016 6:15 pm
Forum: Investing - Theory, News & General
Topic: Why buy now, why not wait until the market really crashes??
Replies: 79
Views: 13822

Re: Why buy now, why not wait until the market really crashes??

Because the market is not falling. It has fallen. And we do not know if it will keep falling. Historical evidence suggests that it is more likely to rise again than to fall further.
by selters
Wed Jan 20, 2016 2:21 pm
Forum: Investing - Theory, News & General
Topic: Anyone shifting their AA?
Replies: 91
Views: 9162

Re: Anyone shifting their AA?

Hopefully you picked your AA based on your need, ability and willingness to take risk. Has any of that really changed? I'm at 70/30 as well, and the bonds are doing their job, reducing overall portfolio volatility - zigging while stocks are zagging. There are a pile of assets there, that are actual...
by selters
Mon Jan 18, 2016 8:11 pm
Forum: Investing - Theory, News & General
Topic: why do investors prefer cash dividends
Replies: 372
Views: 40559

Re: why do investors prefer cash dividends

Receiving a dividend is free. Selling shares involves fees to your broker.
by selters
Sun Jan 17, 2016 11:27 am
Forum: Investing - Theory, News & General
Topic: I'm Calling an Emerging Markets Bottom
Replies: 292
Views: 57311

Re: I'm Calling an Emerging Markets Bottom

From the previous Bogleheads forum at morningstar.com Taylor Larimore Emerging Markets 10-26-1998, 12:47 PM | Post #1019827 For the period 1985-1996 Emerging Markets overall returned an average annual return of 28.69%. Since then, Emerging Markets have been a disaster. Each asset class usually prov...
by selters
Sat Jan 09, 2016 1:25 pm
Forum: Investing - Theory, News & General
Topic: NY Real Estate vs. The Stock Market
Replies: 38
Views: 4499

Re: NY Real Estate vs. The Stock Market

Is it fair to compare one part of the real estate market with the total stock market? What about the whole real estate market vs the whole stock market? Or any of the top 10 stocks since 1981 vs the whole real estate market?

Fair or not, it is a valid question to ask.
by selters
Sat Jan 09, 2016 12:41 pm
Forum: Investing - Theory, News & General
Topic: Does the market being down limit downside risk?
Replies: 56
Views: 4565

Re: Does the market being down limit downside risk?

In 1929 the stock market declined 79%. That means that after it dropped 50%, it dropped another 50%, and then it dropped another 14%. Then it recovered... and then in 1937 it dropped 50%... again! ........ What I am actually trying to do is come up with a way of calculating if I buy $10,000 of VTI ...
by selters
Sat Jan 09, 2016 10:29 am
Forum: Investing - Theory, News & General
Topic: Determining US stock as proportion of world stock
Replies: 19
Views: 1698

Re: Determining US stock as proportion of world stock

Search for "msci acwi imi index" on Google. You'll find a link to a factsheet in .pdf format about the MSCI all country world investible market index as your first result. It's updated monthly. "The MSCI ACWI Investable Market Index (IMI) captures large, mid and small cap representation across 23 De...
by selters
Sat Jan 09, 2016 7:40 am
Forum: Investing - Theory, News & General
Topic: I'm curious if over-weighting equity investors still ok?
Replies: 92
Views: 9643

Re: I'm curious if over-weighting equity investors still ok?

I don't worry about prices at all. If prices are stagnant or falling, even for years, I wouldn't worry. In the long run, what matters is earnings . I would probably have second thoughts if earnings of most public companies were falling all over the world for a prolonged period of time (5+ years). Fa...
by selters
Wed Jan 06, 2016 9:44 am
Forum: Investing - Theory, News & General
Topic: VWO: what a terrible performance!!
Replies: 79
Views: 12070

Re: VWO: what a terrible performance!!

I guess I just have to decide to do a EM tilt or liquidate and just roll with Total International. it's been said the recent Chinese drop was due to concern over the freeze in A-shares for large stock holders was about to be lifted. If China wants to freeze selling I guess they can, but I don't see...
by selters
Fri Dec 25, 2015 1:20 pm
Forum: Investing - Theory, News & General
Topic: Next year is the year for stock picking....
Replies: 26
Views: 3442

Re: Next year is the year for stock picking....

Every year next year is the year of the stock picker.
by selters
Tue Dec 15, 2015 6:39 pm
Forum: Personal Investments
Topic: [Intending to drop international funds]
Replies: 70
Views: 10036

Re: I've been duped by index investing it seems.

Remember that the dollar has strengthened relative to other currencies. You can now buy more foreign goods for the same dollar amount than you could two years ago. European equity markets have performed quite well this year in local currency terms. The same with Japanese stocks.
by selters
Sat Dec 12, 2015 5:46 pm
Forum: Investing - Theory, News & General
Topic: Check-In on Emerging Market Sentiment
Replies: 57
Views: 6740

Re: Check-In on Emerging Market Sentiment

EmergDoc wrote:I tax loss harvested this week from VWO to EEM.
Just curious, why not IEMG? Do you need the extra liquidity of EEM?
by selters
Mon Nov 30, 2015 7:17 pm
Forum: Non-US Investing
Topic: European investor needing some help setting up a lazy portfolio
Replies: 15
Views: 2290

Re: European investor needing some help setting up a lazy portfolio

Did you already reflect on your Asset Allocation and the ratio stocks/bonds? Yeah, I settled on 90% iShares Core MSCI World UCITS ETF (IWDA) - the one you reccomended - and 10% on bonds, for now. I'll probably increase that percentage as time goes by. I took your advice and decided that the exposur...
by selters
Sat Nov 21, 2015 8:30 am
Forum: Personal Investments
Topic: Emerging Markets allocation in Global Market is 25%?
Replies: 11
Views: 2066

Re: Emerging Markets allocation in Global Market is 25%?

Using MSCI's IMI indexes, which comprise 99% of the market cap in their respective markets: MSCI emerging markets investible market index total market cap: 4,081,049.95 million USD MSCI all country world investible market index total market cap: 42,116,338.42 million USD Which puts emerging markets ...
by selters
Tue Oct 27, 2015 6:58 pm
Forum: Personal Consumer Issues
Topic: Car advice for tall person
Replies: 29
Views: 3922

Re: Car advice for tall person

If you're going to place the baby in a rear facing children's seat (which you should), you should make sure thay there's plenty of leg room in the rear seats. Unless you want to drive the car 100% of the time, you need a car that can fit a rear facing children's seat in the back while at tje same ti...
by selters
Sun Oct 11, 2015 2:00 am
Forum: Investing - Theory, News & General
Topic: Missing a Segment of Stocks in My Portfolio
Replies: 8
Views: 1148

Re: Missing a Segment of Stocks in My Portfolio

60% TSM + 40% SC would pretty much achieve your goal, at the lowest cost possible, would it not?
by selters
Sat Oct 03, 2015 5:04 pm
Forum: Non-US Investing
Topic: Slice and dice to reduce weighted average expense ratio? European investor
Replies: 2
Views: 602

Slice and dice to reduce weighted average expense ratio? European investor

I have access to iShares ETFs in Europe. How would you invest if these ETFs were your investment options? These are my investment options, with expense ratios in parantheses: iShares Core S&P 500 UCITS ETF (0.07%) iShares Core MSCI World UCITS ETF (0.20%) iShares Core MSCI Pacific ex Japan UCITS ETF...
by selters
Mon Sep 28, 2015 7:03 am
Forum: Investing - Theory, News & General
Topic: Should You Buy On The Dips?
Replies: 45
Views: 5361

Re: Should You Buy On The Dips?

If you use rebalancing bands, you're basically buying during the dips. So you achieve the same thing.
by selters
Tue Sep 22, 2015 4:58 pm
Forum: Investing - Theory, News & General
Topic: VW stock goes from 170 to almost 100 and falling, good time to buy?
Replies: 169
Views: 20142

Re: VW stock goes from 170 to almost 100 and falling, good time to buy?

I don't think the fundamentals of the company have changed at all. To me it seems like the market makers have overreacted. I don't think customers care that much. The difference between lab fuel consumption and real world fuel consumption has always been big, no matter what auto maker one is talking...
by selters
Thu Aug 27, 2015 7:00 pm
Forum: Investing - Theory, News & General
Topic: Too Much Indexing???
Replies: 56
Views: 10231

Re: Too Much Indexing???

Remember also that efficient markets aren't required for indexing to work. As a group, all investors earn the market return. For someone to outperform, someone else has to underperform. If you index, you won't be underperforming.
by selters
Sun Aug 23, 2015 8:37 pm
Forum: Personal Investments
Topic: Any thoughts on Global Min Volatility Fund?
Replies: 11
Views: 2254

Re: Any thoughts on Global Min Volatility Fund?

Financial researchers have commented on the "low volatility paradox" on numerous occasions. Historically, low volatility stocks have yielded higher returns with lower risk than the total market. If you believe that this "paradox" will persist, it makes sense to tilt toward low volatility stocks, but...
by selters
Sun May 17, 2015 12:58 pm
Forum: Investing - Theory, News & General
Topic: Too late to invest in Health Care Fund?
Replies: 56
Views: 10607

Re: Too late to invest in Health Care Fund?

When I started investing i 2012, I had decided that I wanted to overweight health care and biotech, so I did. From 2012 to 2014 health care and biotech had a huge run, so I in mid 2014 I sold my health care and biotech funds and bought shares of a total stock market index fund instead. The outperfor...
by selters
Sun Apr 26, 2015 4:05 pm
Forum: Personal Investments
Topic: Immigrant figuring out 401K, please help with selection
Replies: 15
Views: 1565

Re: Immigrant figuring out 401K, please help with selection

I stand corrected. I should have stated that I meant that it's fine for him to be 100% equities in one S&P 500 index fund in is 401k. He should have cash or bonds (and maybe some international equities) in some other account to make it a more balanced asset allocation.
by selters
Sun Apr 26, 2015 2:33 pm
Forum: Personal Investments
Topic: Immigrant figuring out 401K, please help with selection
Replies: 15
Views: 1565

Re: Immigrant figuring out 401K, please help with selection

In the Fidelity S&P 500 index fund you are plenty diversified. You have made the right choice. You do not need to change anything.
by selters
Sun Mar 22, 2015 1:40 pm
Forum: Investing - Theory, News & General
Topic: The Most Likely Portfolio Peril — Inflation or Deflation?
Replies: 40
Views: 5880

Re: The Most Likely Portfolio Peril — Inflation or Deflation

http://www.federalreserve.gov/boarddocs ... efault.htm

Ben Bernanke thinks deflation will never become a serious problem under fiat currency system. This belief is called 'the bernanke doctrine'.
by selters
Sat Mar 21, 2015 3:09 am
Forum: Non-US Investing
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3193

Re: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

Ok. Thanks.

I had a look this chart tool: http://www.stoxx.com/indices/index_info ... ymbol=sx5e

It seems the diversification in Euro Stoxx 50 is just too small. The Euro Stoxx 50 ETF is off the table, then.
by selters
Fri Mar 20, 2015 3:07 pm
Forum: Non-US Investing
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3193

Re: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

0.4% was just a very rough estimate. If the dividend yield is 3.1%, then a 30% withholding tax means that 1% needs to be subtracted from your total return every year. If 30% corresponds to 1%, then 15% corresponds to 0,5%. Withholding tax rates seem to vary and practice from year to year seems to va...
by selters
Fri Mar 20, 2015 3:28 am
Forum: Non-US Investing
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3193

MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs

iShares Europe offers two reasonably priced European index ETFs. The first ETF tracks the MSCI Europe index, contains 420 stocks throughout all developed markets in Europe and has an ER of 0.33% per year. The second ETF tracks the STOXX 50 index, contains 50 stocks throughout seven EU countries (exc...
by selters
Sun Mar 08, 2015 2:18 pm
Forum: Personal Investments
Topic: Too many people using index funds?
Replies: 47
Views: 10479

Re: Too many people using index funds?

Markets do not need to be efficient for indexing to work, because in sum, the market return will always equal the index return before costs. If you index, at worst, you'll be average.
by selters
Mon Feb 16, 2015 5:39 pm
Forum: Personal Investments
Topic: Hybrid Investment Strategy for Bogleheads
Replies: 20
Views: 1873

Re: Hybrid Investment Strategy for Bogleheads

There have been quite a few crashes in the last couple of years in countries that there exist ETFs for: egypt, turkey, thailand, russia, india small cap. In hindsight it is always easy to tell oneself that you should have bought at those low levels. A problem is that you never know when these market...
by selters
Sun Feb 15, 2015 5:29 pm
Forum: Personal Investments
Topic: Just no petroleum or defense?
Replies: 49
Views: 5008

Re: Just no petroleum or defense?

iShares MSCI ACWI Low Carbon Target ETF: http://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf The MSCI ACWI Low Carbon Target Index is based on the MSCI ACWI Index, its parent index, and includes large and mid-cap stocks across 23 Developed Markets (DM) and 23 Emerging M...
by selters
Sun Feb 15, 2015 7:10 am
Forum: Investing - Theory, News & General
Topic: why stocks outperform other asset classes in the long run ?
Replies: 51
Views: 5211

Re: why stocks outperform other asset classes in the long ru

From https://www.bogleheads.org/forum/viewtopic.php?f=10&t=153866#p2307815: In a small town, there are two businesses: a big hypermarket spread over 9 locations and a small shoe shop. The hypermarket's market share is 90% and the shoe shop's is 10%. Their ownership is offered on the stock market. W...
by selters
Wed Dec 31, 2014 3:03 pm
Forum: Investing - Theory, News & General
Topic: XSOE: Emerging Markets ex-State-Owned Enterprises
Replies: 12
Views: 1443

Re: XSOE: Emerging Markets ex-State-Owned Enterprises

As examples, Petrobras, the Brazilian oil company, is the one of the top ten companies in the world by market cap; yet, it's 54% owned by the Brazilian government. Gazprom was the third largest company in the world by market cap, until the recent Russian market crash, and it is the world's largest ...
by selters
Wed Dec 31, 2014 6:42 am
Forum: Investing - Theory, News & General
Topic: Another silly anti-index article
Replies: 42
Views: 5447

Re: Another silly anti index article

The argument that active funds reduce losses in down markets has been debunked many times and is obviously silly. But the point about the market behaving differently in the future because of more and more assets being held by index investors and etfs is plausible. 50 years ago the stock market was t...
by selters
Sat Dec 20, 2014 5:39 am
Forum: Non-US Investing
Topic: [Denmark] Retirement Portfolio Review
Replies: 5
Views: 1040

Re: [Denmark] Retirement Portfolio Review

I have access to the Nordnet super funds myself, and I'm quite sure that Nordnet doesn't charge any fees or expenses at all, but I have some worries about withholding taxes. The super funds are all domiciled in Sweden, so I'm still not convinced that the Norwegian, Danish and Finnish tax authorities...
by selters
Tue Nov 25, 2014 3:05 am
Forum: Non-US Investing
Topic: Complement MSCI ACWI (Acc) idx fund with VXF and VSS in EU?
Replies: 2
Views: 527

Re: Complement MSCI ACWI (Acc) idx fund with VXF and VSS in

VXF (Vanguard Extended Market ETF) has an expense ratio of 0.10% annually. VSS (Vanguard FTSE All World ex-US Small-Cap ETF) has an expense ratio of 0.20%.
by selters
Mon Nov 24, 2014 3:30 pm
Forum: Non-US Investing
Topic: Complement MSCI ACWI (Acc) idx fund with VXF and VSS in EU?
Replies: 2
Views: 527

Complement MSCI ACWI (Acc) idx fund with VXF and VSS in EU?

I live in Europe. European funds usually reinvest dividends before taxes. I invest in an index fund that tracks the MSCI ACWI. Annual TER is 0.30%. The index has about 2200 stocks and comprises the top 85% of global market capitalization in developed and emerging markets. I'm considering adding the ...
by selters
Fri Nov 14, 2014 8:24 am
Forum: Personal Investments
Topic: 30% In International Stocks?
Replies: 59
Views: 10326

Re: 30% In International Stocks?

I wholeheartedly agree that "past performance is not a guarantee of future returns". As it is, U.S. stocks are currently going through the roof whereas International stocks aren't doing so well. This coupled with the fact that in the next decade International stocks are projected to be doing very w...
by selters
Sat Oct 18, 2014 2:49 pm
Forum: Investing - Theory, News & General
Topic: [Exposure to privately held companies via corporate bonds?]
Replies: 3
Views: 392

[Exposure to privately held companies via corporate bonds?]

[split from old thread List of private companies that don't trade stocks--huge! - admin alex] Would it make sense to invest in corporate bonds issued by private companies to get exposure to private companies in addition to public companies in a total stock market index fund? Has there ever existed ...
by selters
Sun Sep 28, 2014 2:31 pm
Forum: Investing - Theory, News & General
Topic: Does market cap weighted indexing logically follow from EMH?
Replies: 17
Views: 1991

Does market cap weighted indexing logically follow from EMH?

If the efficient market hypothesis (EMH) is right, is market cap weighted index investing the only logical way to invest? I'm asking because market cap weighted indexing is usually recommended as the way to invest around here. I'm not doubting market capitalization weighting, but do we use it BECAUS...
by selters
Wed Sep 17, 2014 11:53 am
Forum: Non-US Investing
Topic: Advice for non-US citizen wanting to invest like a Boglehead
Replies: 17
Views: 3130

Re: Advice for non-US citizen wanting to invest like a Bogle

Have you checked out http://www.meesman.nl/onze-fondsen ? Their fees are high by Bogleheads standards, but 0.5-0.6% a year isn't THAT bad. Apart from that you can buy European iShares and Vanguard ETFs the German and Britsh stock exchanges. Annual fees are lower, but transaction costs are probably h...
by selters
Wed Sep 10, 2014 3:35 pm
Forum: Investing - Theory, News & General
Topic: Total World is 50% Intl?!
Replies: 17
Views: 2690

Re: Total World is 50% Intl?!

The issue is complicated by the fact that many US corporations have significant international operations and derive a large amount of their profit from their overseas operations. For example, Coke is famous for selling their products in basically every country in the world besides North Korea (I du...
by selters
Tue Sep 09, 2014 4:24 am
Forum: Investing - Theory, News & General
Topic: Socially Irresponsible Fund
Replies: 16
Views: 1940

Re: Socially Irresponsible Fund

The one trillion dollar Norwegian Government Pension Fund Global left out tobacco stocks for ethical reasons in 2005 and had lost about 1.5 billion on that move up until february 2014. So at times segments of the market that are deemed socially irresponsible outperforms. But that could be a coincide...
by selters
Mon Sep 08, 2014 4:25 am
Forum: Investing - Theory, News & General
Topic: Why does the stock market "always go up"? Will this persist?
Replies: 50
Views: 16298

Re: Why does the stock market "always go up"? Will this pers

If you DCA in Japan from 1986 to 2000, you would still have lost money in Japanese stocks for nearly every batch that you brought. Only if you ignore dividends. Maybe you're still in the red in real terms, but at least in nominal terms even an investor who bought at the top in 1990 is only a few ye...
by selters
Mon Sep 08, 2014 4:10 am
Forum: Investing - Theory, News & General
Topic: Why does the stock market "always go up"? Will this persist?
Replies: 50
Views: 16298

Re: Why does the stock market "always go up"? Will this pers

Jim180 wrote:Because the stock market is all about the earnings of corporate America and companies will continue to grow earnings over time.
What if the most profitable companies go private or stay private, outcompeting public companies? Is there ANY conceivable reason that this may happen?
by selters
Sun Sep 07, 2014 4:46 pm
Forum: Investing - Theory, News & General
Topic: POLL : SP500 next : 1900 or 2200?
Replies: 31
Views: 3899

Re: POLL : SP500 next : 1900 or 2200?

Everyone who voted 1900 has sold their shares to buy them back at 1900, I presume?
by selters
Fri Sep 05, 2014 7:25 am
Forum: Investing - Theory, News & General
Topic: Markets defy experts
Replies: 20
Views: 3131

Re: Markets defy experts

Good points, axxs.

Why aren't you using capital letters and standardized spelling and punctuation?