All my funds are now in positive territory.

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gkaplan
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All my funds are now in positive territory.

Post by gkaplan »

All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Gordon
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White Coat Investor
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Post by White Coat Investor »

Yes, it's been a pretty good start to the year hasn't it.

I try to be optimistic though. If the markets are going up I'm glad to be making money. If they're going down I'm glad to be buying at lower prices.

Best asset class YTD is REITs (My European is combined with my Pacific). Worst asset class is cash/G fund just like the last two years. The bull market continues for now.
Last edited by White Coat Investor on Fri Apr 29, 2011 2:01 pm, edited 1 time in total.
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
Manbaerpig
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Post by Manbaerpig »

I'm normally just happy to be employed, agreed nice seeing accounts in the black.
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Index Fan
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Post by Index Fan »

For those who like to look for signs, this is the 3rd year of a Presidential term, which usually has the best market returns out of that 4-year cycle. Of course we have a long way to go for the rest of the year :)
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Taylor Larimore
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Diversification and correlation

Post by Taylor Larimore »

gkaplan wrote:All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Hi gkaplan:

I begin to worry when all our funds move together.
"Simplicity is the master key to financial success." -- Jack Bogle
natureexplorer
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Re: Diversification and correlation

Post by natureexplorer »

Taylor Larimore wrote:I begin to worry when all our funds move together.
And you should. It means you are not very diversified. That however doesn't mean that it easy to become a lot more diversified efficiently.
kuttolas
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Re: Diversification and correlation

Post by kuttolas »

Taylor Larimore wrote:
gkaplan wrote:All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Hi gkaplan:

I begin to worry when all our funds move together.
So what do I do, when all the funds are moving up together. I am diversified into Total US Stocks, Total International Stocks and Total Interim-Bond funds. Where else should I Invest?
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gkaplan
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Post by gkaplan »

natureexplorer wrote:Taylor Larimore wrote:
I begin to worry when all our funds move together.
And you should. It means you are not very diversified. That however doesn't mean that it easy to become a lot more diversified efficiently.
I don't know how I could be more diversified. My portfolio consists of 36% domestic equities, split evenly between large value, small value, and REITs; 36% foreign equities,split evenly between developed large, developed small, and emerging; and 28% fixed income.
Gordon
natureexplorer
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Post by natureexplorer »

gkaplan wrote:
natureexplorer wrote:Taylor Larimore wrote:
I begin to worry when all our funds move together.
And you should. It means you are not very diversified. That however doesn't mean that it easy to become a lot more diversified efficiently.
I don't know how I could be more diversified. My portfolio consists of 36% domestic equities, split evenly between large value, small value, and REITs; 36% foreign equities,split evenly between developed large, developed small, and emerging; and 28% fixed income.
Commodities.
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norookie
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Re: Diversification and correlation

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Last edited by norookie on Sun Sep 04, 2011 9:47 pm, edited 1 time in total.
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jmbkb4
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Re: Diversification and correlation

Post by jmbkb4 »

Taylor Larimore wrote:
gkaplan wrote:All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Hi gkaplan:

I begin to worry when all our funds move together.
great point. All we can do is stay the course and ride this thing out, I suppose.
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Taylor Larimore
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Re: Diversification and correlation

Post by Taylor Larimore »

kuttolas wrote:
Taylor Larimore wrote:
gkaplan wrote:All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Hi gkaplan:

I begin to worry when all our funds move together.
So what do I do, when all the funds are moving up together. I am diversified into Total US Stocks, Total International Stocks and Total Interim-Bond funds. Where else should I Invest?
Hi gkaplan:

I didn't say it was necessary to do anything. In fact, I love your three-fund portfolio. Sometimes the God's work in our favor.

Out of curiosity, I checked our portfolio. Sure enough, our seven funds all show a gain this year. Let's enjoy it while we can.
"Simplicity is the master key to financial success." -- Jack Bogle
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stratton
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Re: All my funds are now in positive territory.

Post by stratton »

gkaplan wrote:All my funds are now in positive territory year-to-date, including my Vanguard Pacific Stock Index Fund (Admiral Shares).

My highest performing performing fund year to date is my Vanguard European Stock Index fund (Admiral Shares). Last year it was my poorest performing fund.
Time to sell. :-)

I bought brkb several years ago and every time it gets back to what I paid for it the share price drops. Liternally. When the price went $10 dollars over my original brkb price it dropped. Today that would be $10 over 50 shares total value. :roll:

Paul
...and then Buffy staked Edward. The end.
staythecourse
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Post by staythecourse »

gkaplan wrote:
natureexplorer wrote:Taylor Larimore wrote:
"I begin to worry when all our funds move together."

And you should. It means you are not very diversified. That however doesn't mean that it easy to become a lot more diversified efficiently.
I don't know how I could be more diversified. My portfolio consists of 36% domestic equities, split evenly between large value, small value, and REITs; 36% foreign equities,split evenly between developed large, developed small, and emerging; and 28% fixed income.
To each their own, but since you asked I basically see you with a split of: 60/28/0/12% (stock/ bond/ cash/ alternative investments) and that is loosely treating REITS as alternative investments, otherwise it would be: 72/ 28/0/0.

Most folks are "pseudodiversified", meaning they think they are diversified until they find out the hard way when a year like 2008 shows up. If you want true diversification then you have to do a better job of diversifying at the superasset class level of stocks/ bonds/ cash/ alternative investments.

Of course, you have to do what makes you feel comfortable as asset allocation is not more important then "staying the course".

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
Manbaerpig
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Post by Manbaerpig »

well if commodities/gold weren't so high it would be more palatable to at least pick that route to diversify

I'm all ears with respect to a hedge fund that offers any semblance of portfolio diversification that is accessible to the plebians

and with respect to private equity, I guess I can figure that one out at least, have an interest in a business or asset that makes $$ or otherwise isn't associated with commodities or real estate directly

in short: sounds like a grand plan, I don't think investors have any real access to two of the five spokes of MPT (private equity, hedge funds), and with commodities being in the stratosphere I am not so sure now is the best time to get in. Now we're down to two spokes of MPT avail
staythecourse
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Post by staythecourse »

Manbaerpig wrote:well if commodities/gold weren't so high it would be more palatable to at least pick that route to diversify

I'm all ears with respect to a hedge fund that offers any semblance of portfolio diversification that is accessible to the plebians

and with respect to private equity, I guess I can figure that one out at least, have an interest in a business or asset that makes $$ or otherwise isn't associated with commodities or real estate directly

in short: sounds like a grand plan, I don't think investors have any real access to two of the five spokes of MPT (private equity, hedge funds), and with commodities being in the stratosphere I am not so sure now is the best time to get in. Now we're down to two spokes of MPT avail
Sounds like a bit of market timing and as we all know that usually does not turn out well.

If you are a long term investor who cares what the short term flucuations are. Besides the point of diversifying at the super asset class level should be to reduce market risks of your superassets not to get a higher return. Now in the process of doing this you will see improved risk returns of the portfolio as a whole over an extended periods of time.

In short, if you see an advantage of holding gold or broad basket commodities do it. Yes the short term returns could be worse OR they could be nowhere near their peak. Who knows? That is the point of a Random Walk.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
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