Search found 601 matches

by selters
Sun Apr 26, 2015 2:33 pm
Forum: Investing - Help with Personal Investments
Topic: Immigrant figuring out 401K, please help with selection
Replies: 15
Views: 1558

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: 5843

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: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3111

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: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3111

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: Investing - Help with Personal Investments
Topic: MSCI Europe (0.33% ER) vs STOXX 50 (0.10% ER) ETFs
Replies: 8
Views: 3111

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: Investing - Help with Personal Investments
Topic: Too many people using index funds?
Replies: 47
Views: 10406

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: Investing - Help with Personal Investments
Topic: Hybrid Investment Strategy for Bogleheads
Replies: 20
Views: 1862

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: Investing - Help with Personal Investments
Topic: Just no petroleum or defense?
Replies: 49
Views: 4973

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: 5201

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: 1424

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: 5432

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: Investing - Help with Personal Investments
Topic: [Denmark] Retirement Portfolio Review
Replies: 5
Views: 1028

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: Investing - Theory, News & General
Topic: Complement MSCI ACWI (Acc) idx fund with VXF and VSS in EU?
Replies: 2
Views: 524

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: Investing - Theory, News & General
Topic: Complement MSCI ACWI (Acc) idx fund with VXF and VSS in EU?
Replies: 2
Views: 524

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: Investing - Help with Personal Investments
Topic: 30% In International Stocks?
Replies: 59
Views: 10275

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: 390

[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: 1960

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: Investing - Help with Personal Investments
Topic: Advice for non-US citizen wanting to invest like a Boglehead
Replies: 17
Views: 3114

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: 2676

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: 1929

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: 15950

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: 15950

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: 3883

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: 3118

Re: Markets defy experts

Good points, axxs.

Why aren't you using capital letters and standardized spelling and punctuation?
by selters
Thu Sep 04, 2014 6:52 pm
Forum: Investing - Theory, News & General
Topic: How exactly would you define market timing?
Replies: 67
Views: 3839

Re: How exactly would you define market timing?

I think market timing means acting based on some kind of prediction going forward. Increasing one's allocation to stocks to 75% from 50% after a 50% drop in the market is not market timing, because one already knows that the market has fallen 50%. Every time the market has fallen 50%, it has bounce...
by selters
Thu Sep 04, 2014 3:32 pm
Forum: Investing - Theory, News & General
Topic: How exactly would you define market timing?
Replies: 67
Views: 3839

Re: How exactly would you define market timing?

I think market timing means acting based on some kind of prediction going forward. Increasing one's allocation to stocks to 75% from 50% after a 50% drop in the market is not market timing, because one already knows that the market has fallen 50%. Every time the market has fallen 50%, it has bounced...
by selters
Thu Sep 04, 2014 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: Market at a all time high ( Sept 2014) , time to cash out?
Replies: 49
Views: 5622

Re: Market at a all time high ( Sept 2014) , time to cash ou

Maybe it's time to rebalance to get your asset allocation back to where your IPS says it should be. If you for whatever reason think the market is overvalued now, you could reduce your stock allocation to 50% from 60% or something along those lines. Bogle himself has said that is a reasonable thing ...
by selters
Thu Sep 04, 2014 11:45 am
Forum: Investing - Theory, News & General
Topic: frontier markets
Replies: 15
Views: 2116

Re: frontier markets

How does this ETF look? BBRC - Beyond BRICs ETF Like an emerging market fund, not a frontier market fund. BBRC is 75% emerging markets ex BRIC and 25% frontier markets. It follows the FTSE Beyonds BRICs index. It is not a bad choice if one for whatever reason wants some frontier markets exposure an...
by selters
Thu Sep 04, 2014 10:19 am
Forum: Investing - Theory, News & General
Topic: frontier markets
Replies: 15
Views: 2116

Re: frontier markets

FM seems to be the best Frontier markets fund out there. It's not cheap by bogleheads standards at 0.79% a year, but still not too bad. It follows the MSCI Frontier 100 index and holds about 100 stocks. The Frontier 100 index comprises the 100 most liquid stocks in its parent index, the MSCI Frontie...
by selters
Sun Aug 24, 2014 5:27 am
Forum: Investing - Help with Personal Investments
Topic: I need "Ultra High Net Worth" investing advice please
Replies: 235
Views: 34767

Re: I need "Ultra High Net Worth" investing advice please

Being a non-American, I'm just curious. Why isn't anyone recommending putting a substantial portioon of it in 30 year treasury bonds? Inflation risk? Expectations that interest rates are too low nowadays to justify binding oneself to getting only a 3,5% yield every year for 30 years?
by selters
Sun Aug 10, 2014 1:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard australia fees
Replies: 14
Views: 2083

Re: Vanguard australia fees

Thanks for the replys I have always ruled out etfs because ill be saving quite regularly and generally that seems to be the advice on this forum (because of the US fees). I just did the maths and i cant see why anyone in australia would own Funds over etfs. For example for a $10000 balance and regu...
by selters
Tue Aug 05, 2014 2:44 am
Forum: Investing - Help with Personal Investments
Topic: Investor from Finland
Replies: 50
Views: 2859

Re: Investor from Finland

If you live in Finland and have a Nordnet account, your best choice, I think, is the new core series of accumulating ETFs from iShares. You can buy them on the German stock exchange (deutsche Börse). Tickers: EUNL (MSCI World, expense ratio is 0.2%) IS3N (MSCI Emerging Markets, expense ratio is 0.25...
by selters
Wed Jun 25, 2014 3:05 am
Forum: Investing - Theory, News & General
Topic: Are small and mid caps necessary?
Replies: 35
Views: 3532

Re: Are small and mid caps necessary?

if i were you, i would: - be 100% in the low cost S&P 500 fund up to company match - build an emergency fund with a savings account and I-bonds equal to 6-months expenses - come back to the forum for advice when done I definitely agree. The other two funds don't look good enough to be worth holding...
by selters
Thu Jun 19, 2014 11:09 am
Forum: Investing - Theory, News & General
Topic: Dollar Cost Averaging vs. Lump Sum
Replies: 31
Views: 6247

Re: Dollar Cost Averaging vs. Lump Sum

DCA reduces risk, but most of the time also reduces returns.
by selters
Fri May 30, 2014 12:52 pm
Forum: Personal Consumer Issues
Topic: Simple Camera for Travel?
Replies: 40
Views: 4073

Re: Simple Camera for Travel?

Do you have a smartphone? The current models have quite excellent cameras. Since your wife already has a good quality camera and you are looking for a convenient point and shoot model, your phone's camera would likely do the trick. I have an iPhone which takes great quality photos, the photos autom...
by selters
Thu May 29, 2014 3:16 am
Forum: Investing - Theory, News & General
Topic: Large Amount in Personal Savings - scared to invest
Replies: 48
Views: 6445

Re: Large Amount in Personal Savings - scared to invest

Some kind of balanced fund of Stocks and bonds is probably right for you. It's easier emotionally to stomach a down period if you are only down 10% or 20% even if the stock market is down 40%. It's also easier emotionally if you ease into the market by investing a little bit from each paycheck into ...
by selters
Wed May 14, 2014 7:14 am
Forum: Investing - Theory, News & General
Topic: Stock Market to Plunge? What a friend said.
Replies: 78
Views: 7878

Re: Stock Market to Plunge? What a friend said.

We are predisposed to believing more in what people tell us in person than what we read from other people. He me may be right, but who knows? Nobody.
by selters
Mon May 05, 2014 2:44 pm
Forum: Investing - Theory, News & General
Topic: Non-US investors having fixed allocation to US equities.Why?
Replies: 6
Views: 759

Re: Non-US investors having fixed allocation to US equities.

It's not too clear to me why anyone, including Americans, biases to home equities. For me as a Norwegian there's reason to overweight Norwegian and European equities, since dividends paid to European funds from inside the European Union are not taxed until the funds are sold. So the dividends can b...
by selters
Fri May 02, 2014 6:11 pm
Forum: Investing - Theory, News & General
Topic: Trying to pick the lesser of two evils (ETN vs Active funds)
Replies: 10
Views: 1111

Re: Trying to pick the lesser of two evils (ETN vs Active fu

Many active funds are "closet index funds". At least they don't deviate too much from the index, so you are pretty sure you get somewhat close to market returns before expenses.
by selters
Fri May 02, 2014 11:52 am
Forum: Investing - Theory, News & General
Topic: Bloomberg: U.S. stocks will fall 11 percent !
Replies: 12
Views: 1821

Re: Bloomberg: U.S. stocks will fall 11 percent !

He must be well versed in technical analysis...
by selters
Mon Apr 28, 2014 2:57 pm
Forum: Investing - Theory, News & General
Topic: Guaranteed a 4% nominal return if these criteria are met?
Replies: 7
Views: 2431

Re: Guaranteed a 4% nominal return if these criteria are met

Let's assume that stock prices follow the rate of inflation (2%), earnings stay constant and the dividend yield stays at 2%. If these criteria are met, is it safe to assume that stocks will yield a 4% nominal return every year? So you're saying that if we assume that prices increase by 2% and the y...
by selters
Mon Apr 28, 2014 2:28 pm
Forum: Investing - Theory, News & General
Topic: Guaranteed a 4% nominal return if these criteria are met?
Replies: 7
Views: 2431

Guaranteed a 4% nominal return if these criteria are met?

Let's assume that stock prices follow the rate of inflation (2%), earnings stay constant and the dividend yield stays at 2%. If these criteria are met, is it safe to assume that stocks will yield a 4% nominal return every year?
by selters
Tue Apr 22, 2014 6:48 am
Forum: Investing - Theory, News & General
Topic: Warren Buffett
Replies: 45
Views: 4597

Re: Warren Buffett

What's your secret sauce? Why are you able to "beat an index by 1-2 pct over time?" I'm curious as well. 70% of professional active mutual fund managers can't beat the indices over the long haul. What's your secret? I've read about some studies that find that the average professional fund manager a...
by selters
Sun Apr 13, 2014 11:01 am
Forum: Investing - Theory, News & General
Topic: Two separate US and ex-US index funds vs one global DM fund
Replies: 6
Views: 845

Re: Two separate US and ex-US index funds vs one global DM f

Thanks. My question was regarding not holding them at weights according to their market cap, but rather at fixed percentages (like 60/40 or 50/50), so that I could rebalance them every now and then by directing new money from my monthly contributions into the fund that underperforms. Assuming that t...
by selters
Fri Mar 28, 2014 6:24 am
Forum: Investing - Theory, News & General
Topic: How often are TR funds' price adjusted for dividends?
Replies: 4
Views: 682

Re: How often are TR funds' price adjusted for dividends?

Ok, thanks. But many index funds, such as the VFIAX, don't pay any dividends, do they? They automatically reinvest the dividends, right?
by selters
Fri Mar 28, 2014 6:03 am
Forum: Investing - Theory, News & General
Topic: How often are TR funds' price adjusted for dividends?
Replies: 4
Views: 682

How often are TR funds' price adjusted for dividends?

The total annual return of a total return index fund is calculated as follows, right?: price appreciation + dividends - expenses = total annual return My question is then, since the S&P 500 is a price only index, how often is an index fund's price adj6sted for dividends? Is the price adjusted every ...
by selters
Fri Mar 28, 2014 3:36 am
Forum: Investing - Theory, News & General
Topic: Index weighting variations
Replies: 23
Views: 1890

Re: Index weighting variations

Question: With enough ratio contortions, can I wring a free lunch out of the stock market using information every investment bank and hedge fund also has? Answer: No, markets are efficient, and free lunches using publicly available information do not exist. Otherwise, no one would have to work for ...
by selters
Wed Mar 05, 2014 1:48 am
Forum: Investing - Theory, News & General
Topic: Two separate US and ex-US index funds vs one global DM fund
Replies: 6
Views: 845

Re: Two separate US and ex-US index funds vs one global DM f

For my developed markets exposure the lowest cost index fund available is one that tracks the MSCI World index and has a an annual expense ratio of 0.30% Welcome to the forum. Doesn't this fund automatically rebalance among regions? If not, how does it track a world index? Thanks. Yes, I think it's...
by selters
Tue Mar 04, 2014 4:39 pm
Forum: Investing - Theory, News & General
Topic: Get ready for the Dow at 6,000 by 2016: Pro
Replies: 46
Views: 7631

Re: Get ready for the Dow at 6,000 by 2016: Pro

Germany has had a declining population for a few years now and has had more deaths than births for forty years. Its stock market has done fine.