Higher Rates Are Already Priced In, Bond Veteran Says: (PIOBX) FYI: There seems to be no shortage of worries to keep a chief investment officer up at night. Yet, when asked for a quick take on the fixed-income market, Ken Taubes, 60, offers some consolation. “I actually think we’re getting back to a more normal economy, at least in the U.S.,” he says. “Even if the politics seem abnormal.”
The question that has for years been weighing on investors—how bond markets would react to rising interest rates—has largely been answered. “Most of the damage has been done, or it has been priced in,” says Taubes, who has managed the $
5 billion Pioneer Bond fund (ticker: PIOBX) for the past 20 years. The fund has returned an average of
5.4% a year over the past decade, better than more than 80% of the Morningstar intermediate bond category; along with its peers and the benchmark, the fund is down 2.4% so far in 2018.
Regards,
Ted
M* Snapshot PIOBX:
https://www.morningstar.com/funds/XNAS/PIOBX/quote.htmlLipper Snapshot PIOBX:
https://www.marketwatch.com/investing/fund/piobxPIOBX Is Rand #22 In The (IB) Fund Category By U.S. News & World Report:
https://money.usnews.com/funds/mutual-funds/intermediate-term-bond/pioneer-bond-fund/piobx
sorry one more question-buying funds with large percentage of cash I'm pretty much like
@BenWP on this when it comes to cash and letting my fund managers handle stocks and bonds for me. In addition, I'll tweak my asset allocation and get more conserative with stock valuations being high by raising my allocation to cash and bonds and lowering my allocation to stocks. Within my stock allocation I'll also go more defensive by holding more of the traditional defensive sectors such as utilities, health care and consumer staples. In addition, my reit fund is doing well so I've been adding to it. Currently, I'm more towards 1
5% in my cash area and moving towards 20% ... in my income area I'm more towards 3
5% and moving towards 40% ... and, in my growth & income area I more towards 3
5% and staying there ... and, in my growth area I more toward 1
5% and reducing.
Is The Stock Market Open On Veterans Day 2018? @Catch22- Well, as a (half) Italian veteran, I must admit that I'm pretty confused by all of this. It was especially irksome when I had to go to work on Veteran's Day, while my totally non-veteran wife got the day off. Then again, after teaching for 3
5 years in the SF Public School "system", perhaps she deserves to be considered an honorary veteran.
last one (I promise)-buying EM I am also wondering what people thoughts are about buying EM funds right now (I own both Seafarer Growth/income and Value funds). This is based on GMO recommendations (same GMO folks who were wrong about seeing a bubble when S&P reached 1500 a while back) and Research Affiliates (Rob Arnott). According to Mr. Foster (who I believe is a genuine person), one should be investing in China if one has a 20 year investment window. In addition, Mr. Foster recommends buying more if a China downturn takes place. At this point, everyone and their mother is aware of China's debt issues. Also I may have read somewhere that Munger (who is in his 90s) is overweight EM. I realize issues with currency risk,... but I am a fan of buying assets when they are on sale. Wondering if others are pursuing this strategy (Mr. Bogle is probably not with his US focus).
sorry one more question-buying funds with large percentage of cash Hi all, One more question. Sorry. At this point in my life, I am more worried about downside protection vs. upside. As a result, I own the following funds with large allocation to cash: FPA Crescent, FPA International value, IVA worldwide, Pinnacle value, Artisan international value and Fairholme (please don't laugh). Yes, I am (and have been) overweight value which has not paid off in the past 9 years (just an FYI, not a complaint). In addition to the above reason, I bought these funds as I turned cautious on the market when the S&P hit 1500 a while ago and Mr. Grantham (GMO) warned of a bubble (boy was Mr. Grantham WRONG/EARLY as the S&P went ahead and almost doubled). Here is my question. On the one hand these funds could let you sleep at night. However, that comes at a price (sometimes heavy price) as they all charge fees above 1% (1.44% in the case of pinnacle value). Sometimes I wonder if it is better to sit in cash instead. Although I am hoping that the managers can buy at the right price in the case of a downturn (no guarantees). Wondering what your thoughts are. In hindsight, now might be a good time to pile in these funds (not a few years ago).
Preferred Bond Funds Since, I am in the process of moving some of my equity money found in the growth area of my portfolio towards funds that generate a good income stream I have PFANX under buy review along with INUTX. These two funds will be additions and held, if purchased, in the growth & income area of my portfolio. PFANX will be held in the global hybrid sleeve while INUTX will be held in the domestic equity sleeve. This will increase each of these sleeves from three funds to four with the new funds being minor positions with about a 5% to 10% starting weighting within their respective sleeves. I plan to increase new positions over time thur a position cost average approach.
The Breakfast Briefing: U.S. Stocks Open Lower After Fed Says It Sees ‘Further Increased Rates
Buffett’s Underrated Investment Attribute FYI: As the author recently mentioned, I think one of Warren Buffett’s most underrated skills is his ability to recognize when a situation is getting outside of his well-defined circle of competence. He not only recognizes when a situation is too hard, but I think he doesn’t waste much time even considering the investment. I doubt he spent more than an hour thinking about whether or not to invest in Sears when Lampert reorganized the retailer in the early 2000’s. I’ll highlight a few comments Buffett said in 200
5 when asked about Sears. What strikes me is the common sense and simplicity of his logic:
Regards,
Ted
http://basehitinvesting.com/buffetts-underrated-investment-attribute/
The Closing Bell: Wall Street Rallies On U.S. Elections Lead By Tech, Health Stocks
Here Is A Serious Income Alternative To High-Yield
USAA selling investment asset business to Victory Capital Holdings Inc.
What’s Happened To The Stock Market After Every Midterm Election Since World War II "Since 1946, there have been 18 midterm elections. Stocks were higher 12 months after every single one. Every single one. That’s 18 for 18."
Duh? That probably simply means that the approach of an election brings about uncertainty (pretty much the definition of election). Markets don't like uncertainty. I don't like uncertainty.
18 out of 18? I'd prefer at least 25/25 before I'd bet the ranch.
USAA selling investment asset business to Victory Capital Holdings Inc.
What’s Happened To The Stock Market After Every Midterm Election Since World War II “For all the market’s gyrations in the past few weeks, the S&P
500 is roughly flat this year. If we stay on script, we should expect the market to surge in November after the uncertainty of the elections is behind us.”
See this from Capital also =>>
https://www.thecapitalideas.com/articles/midterm-elections-outlook-3-scenarios“U.S. politics will be a key focus of uncertainty for investors until November, when the results of important midterm elections should provide some answers. Both houses of Congress are in play and the parties are pulling out all the stops to turn out their voters. The election results could have significant short-term ramifications for investors.”
This one also=>>
https://www.thecapitalideas.com/articles/midterm-elections-markets-5-chartsCheers!
What’s Happened To The Stock Market After Every Midterm Election Since World War II FYI: Tuesday is going to be a crucial day for the stock market. Are you prepared?
If the polls are correct, President Donald Trump and the Republicans are in big trouble. There’s an 86% chance Democrats will seize control of the House of Representatives, according to statistical-analysis firm FiveThirtyEight.
This is causing big-time anxiety for investors who’ve enjoyed the 28% stock market rally since Trump took office. No matter what you think of Trump, his reign as president has been great for stocks. But as the election has drawn closer, the market has fallen apart.
The S&P
500 closed out October with a 7% monthly drop, nearly its worst month since the financial crisis. So what could happen this month—and the months ahead?
Few topics stir emotion in America like politics. Many perfectly reasonable people lose the ability to think straight when they hear the name “Trump.” As I always said at RiskHedge, politics and investing don’t mix. Investor Warren Buffett often says: “If you mix politics and investing, you’re making a big mistake.”
Regards,
Ted
https://www.barrons.com/articles/whats-happened-to-the-stock-market-after-every-midterm-election-since-world-war-ii-1541523813?mod=hp_DAY_3
Social Responsibility No Longer A 'Niche'
2018 Mutual Funds preliminary capital gain distribution estimates
The Next Act For Small Caps: (VILLX)
Social Responsibility No Longer A 'Niche' FYI: As most advisors know, U.S. sustainable investing has grown dramatically, up 38% since 2016 in the U.S. to make up 26% of the $46.6 trillion in U.S. assets under management, according to the U.S. Sustainable Investment Foundation’s 2018 report on Sustainable, Responsible and Impact Investing Trends. Since 199
5, when US SIF first started keeping tabs, socially responsible assets have had a 13.6% compounded annual growth rate.
Regards,
Ted
https://www.thinkadvisor.com/2018/11/02/social-responsibility-no-longer-a-niche/
