How Do You Like My New 'Doo

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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nedsaid
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Re: How Do You Like My New 'Doo

Post by nedsaid » Wed Jun 19, 2019 10:40 am

I jokingly put a "buy" on US Large Value, US Mid Value, and US Small Value on June 17, 2019 in another thread. It was half serious as I have been reading Larry Swedroe's recent articles on the valuation gaps between Large and Small and between Growth and Value, we are seeing numbers that remind us of 1999. Larry also noted that profit margins are starting to fall and that stocks without earnings did relatively well recently. Signs that perhaps the Large Growth dynamic that has dominated the US and International Stock Markets might be starting to break. But then again, that is what we thought in 2016.

I started a process of Growth to Value rebalancing, the dollar amounts are relatively small but I am getting the process started. I started with a small purchase of iShares S&P 600 Small Value Index ETF on Monday. I sold a small amount of Fidelity Total Stock Market Index and purchased Fidelity Large Cap Value Index on Tuesday. Also sold some shares that day of American Century Heritage (mid-cap Growth) and purchased American Century Mid-Value. Baby steps to be sure but I want to move funds into Value over time.

I wondered how my individual stocks in my retirement have been doing. Checked with Quicken today and as of 6/18/2019, I had a 15 year performance of 8.16% compared to Vanguard Total Stock Market Index Admiral shares of 9.01%. So I am trailing the bogey by 85 basis points over 15 years. Since my stocks are Value oriented, let's check against Vanguard Value Index Admiral Shares. Okay, Vanguard Value Index has a 15 year performance of 8.25%. So I am in the ballpark.
A fool and his money are good for business.

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nedsaid
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Re: How Do You Like My New 'Doo

Post by nedsaid » Wed Jul 03, 2019 1:06 pm

True to my word, I did some more Growth to Value rebalancing today. I sold a bit more of my Fidelity Total Stock Market Index to buy more Fidelity Large Cap Value Index. Sold another bit of Total Stock Market Index to take to cash, that I will use to purchase a few more shares of the S&P 600 Small-Value Index today on Friday which will be my 60th birthday. Also sold a bit of S&P 500 Index to buy Small-Cap Index. Also, took a bit of Equity Growth at American Century and moved it to Income and Growth (which is a Large Value fund). This continues my program of retilting my portfolio towards Small/Mid-Cap and towards Value, I also did a small move from Total Market Index to Large Value Index on Monday, July 1st.
A fool and his money are good for business.

CoAndy
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Re: How Do You Like My New 'Doo

Post by CoAndy » Wed Jul 03, 2019 1:34 pm

nedsaid wrote:
Wed Jul 03, 2019 1:06 pm
True to my word, I did some more Growth to Value rebalancing today. I sold a bit more of my Fidelity Total Stock Market Index to buy more Fidelity Large Cap Value Index. Sold another bit of Total Stock Market Index to take to cash, that I will use to purchase a few more shares of the S&P 600 Small-Value Index today on Friday which will be my 60th birthday. Also sold a bit of S&P 500 Index to buy Small-Cap Index. Also, took a bit of Equity Growth at American Century and moved it to Income and Growth (which is a Large Value fund). This continues my program of retilting my portfolio towards Small/Mid-Cap and towards Value, I also did a small move from Total Market Index to Large Value Index on Monday, July 1st.
I have been contemplating selling some of my Fidelity Total Stock Market and buying more T. Rowe Price Growth in my 457 but fear it is probably something I should have done 6 months ago. Oh well....

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nedsaid
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Re: How Do You Like My New 'Doo

Post by nedsaid » Wed Jul 03, 2019 1:44 pm

CoAndy wrote:
Wed Jul 03, 2019 1:34 pm
nedsaid wrote:
Wed Jul 03, 2019 1:06 pm
True to my word, I did some more Growth to Value rebalancing today. I sold a bit more of my Fidelity Total Stock Market Index to buy more Fidelity Large Cap Value Index. Sold another bit of Total Stock Market Index to take to cash, that I will use to purchase a few more shares of the S&P 600 Small-Value Index today on Friday which will be my 60th birthday. Also sold a bit of S&P 500 Index to buy Small-Cap Index. Also, took a bit of Equity Growth at American Century and moved it to Income and Growth (which is a Large Value fund). This continues my program of retilting my portfolio towards Small/Mid-Cap and towards Value, I also did a small move from Total Market Index to Large Value Index on Monday, July 1st.
I have been contemplating selling some of my Fidelity Total Stock Market and buying more T. Rowe Price Growth in my 457 but fear it is probably something I should have done 6 months ago. Oh well....
Well, Fidelity Total Stock Market is rated by Morningstar as a Core Large Cap fund. It is not strictly a Growth fund but the Total Stock Market and the S&P 500 are dominated by the large mega-caps. T. Rowe Price Growth Stock is a good fund, Morningstar rates it as a 4 star fund and it is rated as Large Cap Growth. So your proposed move is the opposite of what I am doing.

T. Rowe Price Growth stock has Amazon, Microsoft, Facebook, Boeing, Visa, Google, MasterCard, United Health, United Health, and Tencent in its top 10 holdings. 3 of the 5 FAANG stocks are here, the very stocks I am trying to underweight. But if you believe the Large Growth trend in the US Stock Market will continue, this is a good choice. My desire is to rebalance from the expensive Growth stocks to the cheaper Value stocks. A difference in philosophy but a defendable one.
A fool and his money are good for business.

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nedsaid
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Re: How Do You Like My New 'Doo

Post by nedsaid » Wed Jul 10, 2019 7:00 pm

A quick update on my portfolio.

Asset Allocation is
46.59% US Stocks
17.77% International Stocks
34.08% Bonds
1.35% Stocks
0.20% Other

Stock Stylebox

23 26 17
05 07 07
06 06 05

Bond Stylebox
10 41 16
00 24 07
02 00 00

65% Intermediate Term Investment Grade
23% Long Term Investment Grade
10% Short Term Investment Grade
2% Short Term High Yield Junk

Expense Ratio of Funds/ETFs 0.42%
A fool and his money are good for business.

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spdoublebass
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Re: How Do You Like My New 'Doo

Post by spdoublebass » Thu Jul 11, 2019 11:38 am

nedsaid wrote:
Wed Jul 10, 2019 7:00 pm

Bond Stylebox
10 41 16
00 24 07
02 00 00

65% Intermediate Term Investment Grade
23% Long Term Investment Grade
10% Short Term Investment Grade
2% Short Term High Yield Junk

I’m not trying to clutter up your thread, but I am curious. What bond funds do you hold?

I looked through the thread but didn’t see it listed. Unless I missed it.
I did see you hold some TBM, which would explain some of the style box.

I was just curious if your 23% long term investment grade and 10% short term investment grade came from TBM or if you held these separately.

Thanks!
I'm trying to think, but nothing happens

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nedsaid
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Re: How Do You Like My New 'Doo

Post by nedsaid » Thu Jul 11, 2019 3:32 pm

spdoublebass wrote:
Thu Jul 11, 2019 11:38 am
nedsaid wrote:
Wed Jul 10, 2019 7:00 pm

Bond Stylebox
10 41 16
00 24 07
02 00 00

65% Intermediate Term Investment Grade
23% Long Term Investment Grade
10% Short Term Investment Grade
2% Short Term High Yield Junk

I’m not trying to clutter up your thread, but I am curious. What bond funds do you hold?

I looked through the thread but didn’t see it listed. Unless I missed it.
I did see you hold some TBM, which would explain some of the style box.

I was just curious if your 23% long term investment grade and 10% short term investment grade came from TBM or if you held these separately.

Thanks!
I hold the Fidelity US Bond Index and the Vanguard Total Bond Market ETF. I own Fidelity GNMA and American Century GNMA funds, hold TIPS in a Fidelity index and in an American Century fund, and also own a couple of investment grade, intermediate term bond funds. The intermediate term bond funds are American Century Diversified Bond and Bond Fund of America. Keep in mind that my retirement assets are mostly split up by three main providers: Fidelity, LPL Financial, and American Century.
A fool and his money are good for business.

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