A Boglehead Running the Fed!

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berntson
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A Boglehead Running the Fed!

Post by berntson » Wed Oct 09, 2013 1:52 pm

Janet Yellen, the central banker who is expected to replace Ben Bernanke as Federal Reserve chairman, is an index investor with a soft spot for Vanguard. In a financial disclosure report she filed back in 2011, which was first picked up by the Wall Street Journal, Yellen disclosed anywhere from $3 million to as much as $9.15 million in assets linked to Vanguard mutual funds, including an allocation to the firm’s first-ever fund, the Vanguard Index Trust 500 Portfolio.
http://www.indexuniverse.com/sections/f ... funds.html

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BrandonBogle
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Re: A Boglehead Running the Fed!

Post by BrandonBogle » Wed Oct 09, 2013 2:19 pm

Hopefully low-cost, passive monetary policies become more prevalent.

At the very least, hopefully retail investors see low-cost indexing as better way to build wealth than active funds!

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VictoriaF
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Re: A Boglehead Running the Fed!

Post by VictoriaF » Wed Oct 09, 2013 2:21 pm

Is she coming to BH12 next week?

Victoria
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BTDT
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Re: A Boglehead Running the Fed!

Post by BTDT » Wed Oct 09, 2013 2:36 pm

Cool! A fellow indexer at the helm of the Fed. Thank you for the update.
If past history was all that is needed to play the game of money, the richest people would be librarians.

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White Coat Investor
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Re: A Boglehead Running the Fed!

Post by White Coat Investor » Wed Oct 09, 2013 2:41 pm

I have a higher opinion already. I'm kind of disappointed to see this post becoming more political than it seemed to be in the past.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: A Boglehead Running the Fed!

Post by gkaplan » Wed Oct 09, 2013 2:48 pm

VictoriaF wrote:Is she coming to BH12 next week?

Victoria
Probably not, but it would be kind of neat. Mel?
Gordon

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Kevin21
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Re: A Boglehead Running the Fed!

Post by Kevin21 » Wed Oct 09, 2013 3:01 pm

I always thought that Jack would be a fun pick for the fed--- although he might be better suited for a position dealing with retirement issues.

Glad to see Janet using boglehead funds.

Jack
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Re: A Boglehead Running the Fed!

Post by Jack » Wed Oct 09, 2013 3:06 pm

EmergDoc wrote:I have a higher opinion already. I'm kind of disappointed to see this post becoming more political than it seemed to be in the past.
The post has always been political. The Fed has great economic power and every decision they make creates winners and losers. They have a dual mandate for stable prices and maximum employment. These two goals are frequently in conflict with each other and they must pick one or the other. There is no such thing as a neutral Fed.

Jim180
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Re: A Boglehead Running the Fed!

Post by Jim180 » Wed Oct 09, 2013 3:59 pm

Does anyone have any idea what investment restrictions might exist for a Fed Chairperson? I think a person with such power to influence the markets would have to let everyone know at all times every move they make with their investment portfolios. Any sudden change to a portfolio and someone would shout "Insider trading!".

MindBogler
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Re: A Boglehead Running the Fed!

Post by MindBogler » Wed Oct 09, 2013 4:02 pm

I don't know for sure, but I assume they would place their assets under management in a blind trust. That is what other public officials often do.

ourbrooks
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Re: A Boglehead Running the Fed!

Post by ourbrooks » Thu Oct 10, 2013 8:21 pm

Federal Reserve chairpersons do have to disclose their assets and Ben Bernanke has disclosed his. A hedgefund portfolio of exotic instruments? Nope. TIAA Traditional and CREF Stock. While these are not index funds per se, they are certainly vehicles for long term, low cost, "stay the course" investing.

I would imagine that Federal Reserve chairpersons are offered all kinds of free investing advice and have access to investment vehicles not open to the general public. That the current and future chairpersons both personally follow Boglehead approaches is encouraging.

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Re: A Boglehead Running the Fed!

Post by pkcrafter » Thu Oct 10, 2013 9:29 pm

VictoriaF wrote:Is she coming to BH12 next week?

Victoria
She might, if you invite her. Awww nuts, its sold out. :(


Paul
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musbane
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Re: A Boglehead Running the Fed!

Post by musbane » Thu Oct 10, 2013 11:14 pm

Maybe she really is a Boglehead.

If so, I wonder who?

berntson
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Re: A Boglehead Running the Fed!

Post by berntson » Fri Oct 11, 2013 12:03 am

Well, we know Janet isn't Rick or Larry. How about Lady Geek? It would be a big job to both moderate these forums and be a vice chair at the fed, but I wouldn't put it past her. :wink:

heyyou
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Re: A Boglehead Running the Fed!

Post by heyyou » Fri Oct 11, 2013 12:12 am

including an allocation to the firm’s first-ever fund, the Vanguard Index Trust 500 Portfolio.
Was the 500 index the first fund, or the first VG index fund?

talzara
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Re: A Boglehead Running the Fed!

Post by talzara » Fri Oct 11, 2013 1:11 am

heyyou wrote:
including an allocation to the firm’s first-ever fund, the Vanguard Index Trust 500 Portfolio.
Was the 500 index the first fund, or the first VG index fund?
The first fund that they launched.

Vanguard started off in 1975 with the back-office work for the Wellington funds, excluding marketing. Thus, in some sense, they wasn't yet Vanguard funds -- they were Wellington funds. It was only with the S&P 500 index fund that Vanguard started marketing its "own" funds.

DouglasDoug
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Re: A Boglehead Running the Fed!

Post by DouglasDoug » Fri Oct 11, 2013 7:35 am

I also seem to remember the President being in a Vanguard Fund. The impact of this knowledge didn't seem too significant.

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Taylor Larimore
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Two great minds.

Post by Taylor Larimore » Fri Oct 11, 2013 7:43 am

Bogleheads:

Mrs. Yellen is married to a Nobel Laureate economist. Perhaps he is the one who selected their Boglehead portfolio. Two great minds . . .

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

sadie wess
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Re: A Boglehead Running the Fed!

Post by sadie wess » Fri Oct 11, 2013 8:32 am

Jack wrote:
EmergDoc wrote:I have a higher opinion already. I'm kind of disappointed to see this post becoming more political than it seemed to be in the past.
The post has always been political. The Fed has great economic power and every decision they make creates winners and losers. They have a dual mandate for stable prices and maximum employment. These two goals are frequently in conflict with each other and they must pick one or the other. There is no such thing as a neutral Fed.
Exactly.

However, the news about Yellen does make the gloomy weather forecast a bit sunnier. Metaphorically speaking, because the debt and borrowing of US govt. is truly spooky.

Sadie

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VictoriaF
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Re: A Boglehead Running the Fed!

Post by VictoriaF » Fri Oct 11, 2013 9:06 am

Taylor Larimore wrote:Bogleheads:

Mrs. Yellen is married to a Nobel Laureate economist. Perhaps he is the one who selected their Boglehead portfolio. Two great minds . . .

Best wishes.
Taylor
Hi Taylor,

Or perhaps she was the one who gave George Akerlof ideas leading to his Nobel. Two great minds . . .

Best wishes.
Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

placeholder
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Re: Two great minds.

Post by placeholder » Fri Oct 11, 2013 9:36 am

Taylor Larimore wrote:Mrs. Yellen
That should be Ms. Yellen or Dr. Yellen. Yellen is her birth name not married.

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VictoriaF
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Re: Two great minds.

Post by VictoriaF » Fri Oct 11, 2013 9:40 am

placeholder wrote:
Taylor Larimore wrote:Mrs. Yellen
That should be Ms. Yellen or Dr. Yellen. Yellen is her birth name not married.
Good point. Even if Yellen were her married name, I would use Ms. or Dr. unless she had introduced herself as Mrs.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

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BrandonBogle
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Re: Two great minds.

Post by BrandonBogle » Fri Oct 11, 2013 10:11 am

VictoriaF wrote:
placeholder wrote:
Taylor Larimore wrote:Mrs. Yellen
That should be Ms. Yellen or Dr. Yellen. Yellen is her birth name not married.
Good point. Even if Yellen were her married name, I would use Ms. or Dr. unless she had introduced herself as Mrs.

Victoria
I was raised that way. Even if someone introduces someone else to me as Mrs., I would always use Ms. (or a title if so given) until the person themselves said something or introduced themselves as Mrs. Marriage may not define a person, but they may decide to make it part of their self-identity.

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FNK
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Re: A Boglehead Running the Fed!

Post by FNK » Fri Oct 11, 2013 1:20 pm

berntson wrote:Well, we know Janet isn't Rick or Larry. How about Lady Geek? It would be a big job to both moderate these forums and be a vice chair at the fed, but I wouldn't put it past her. :wink:
How about InterplanetJanet?

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Re: A Boglehead Running the Fed!

Post by Alex Frakt » Fri Oct 11, 2013 1:48 pm

I'm locking this. It's OT and getting increasingly silly.

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