Howdy,
Again, a thank you to all who post the links and also start and participate in the many fine commentaries woven into the message threads.
For those who don't know; I ramble away about this and that, at least once each week.
NOTE: For those who visit MFO, this portfolio is designed for retirement, capital preservation and to stay ahead of inflation creep; if and when it returns. This is not a buy and hold portfolio, and is subject to change on any given day; based upon perceptions of market directions. All assets in this portfolio are in tax-sheltered accounts; and any fund distributions are reinvested in the funds. Gains or losses are computed from actual account values.
While looking around..... I find a much too full weekend period, and will only state that looking at last week's market moves and some of the futures area this Sunday evening; that I still don't find a defined market; as to where the big money may run to next. Me brain cells are too tired.
Such are the numerous battles with investments attempting to capture a decent return and minimize the risk.
We live and invest in interesting times, eh?
Hey, I probably forgot something; and hopefully the words make some sense.
Comments and questions always welcomed.
Good fortune to you, yours and the investments.
Take care,
Catch
SELLs/BUYs THIS PAST WEEK:
NONE
Portfolio Thoughts:
Our holdings had a -.2% move this past week. And yes, we are satisfied with our risk adjusted returns YTD. If the portfolio can pull a +10 to 12% for the year; you will not hear any whining from this house. (This sentence was from an April write; and I/we suppose a +5% for the year may now look good, too !) Our portfolio is at - 2.2% from the high point in mid-July. A brief note: Some of the bond funds are behaving much weaker than we expected. Perhaps this is just a lag in this area from what continues to appear a lack of conviction in many market sectors. Heck, maybe we should just move 50% of the monies into a few long bond funds and find what happens.....:)
Good investment fortune to all in the coming months.
The old Funds Boat may make 5% or 25% this year. I expect some rough waters, changing winds and opposing currents; causing the most serious attention being given to a firm hand upon the rudder control. (April report text)
The immediate below % of holdings are only determined by a "fund" name, NO M* profile this week
CASH = 8.3%
Mixed bond funds = 81.8%
Equity funds = 9.9%
-Investment grade bond funds 18.6%
-Diversified bond funds 18.5%
-HY/HI bond funds 25.8%
-Total bond funds 14.6%
-Foreign EM/debt bond funds 4.3%
-U.S./Int'l equity/speciality funds 9.9%
This is our current list: (NOTE: I have added a speciality grouping below for a few of fund types)
---High Yield/High Income Bond funds
FAGIX Fid Capital & Income
SPHIX Fid High Income
FHIIX Fed High Income
DIHYX TransAmerica HY
DHOAX Delaware HY (front load waived)
---Total Bond funds
FTBFX Fid Total
PTTRX Pimco Total
---Investment Grade Bonds
APOIX Amer. Cent. TIPS Bond
DGCIX Delaware Corp. Bd
FBNDX Fid Invest Grade
FINPX Fidelity TIPS Bond
OPBYX Oppenheimer Core Bond
---Global/Diversified Bonds
FSICX Fid Strategic Income
FNMIX Fid New Markets
DPFFX Delaware Diversified
TEGBX Templeton Global (load waived)
LSBDX Loomis Sayles
---Speciality Funds (sectors or mixed allocation)
FCVSX Fidelity Convertible Securities (bond/equity mix)
FRIFX Fidelity Real Estate Income (bond/equity mix)
FSAVX Fidelity Select Auto
FFGCX Fidelity Global Commodity
FDLSX Fidelity Select Leisure
FSAGX Fidelity Select Precious Metals
RNCOX RiverNorth Core Opportunity (bond/equity)
---Equity-Domestic/Foreign
CAMAX Cambiar Aggressive Value
FDVLX Fidelity Value
FSLVX Fidelity Lg. Cap Value
FLPSX Fidelity Low Price Stock
Comments
I would buy them with roth ira
money, the rest of the money 50%. would be in fidelity money
fund fdrxx? Thank you and others for the advice.
Regards
circa33
Just 5, eh? I think I may need another coffee, first.
First, to preface the choices based upon 50% of the monies being in FDRXX.
Cash reserves, although safe from loss of value on the initial investment will have a loss of "purchasing power". Cash Reserves has an ER of .37 and assume inflation at 2.63% for easy numbers, and that CR is basically paying no yield; one finds a loss of purchasing in one year at a - 3%. This number will compound over time, too.
SO..........a list:
FAGIX Yes, a high yield bond fund (6%) w/about 20% equity exposure. This may seem like an unlikely choice, but you may compare its 3, 5, and 10 year returns to many other HY/Hi bond funds, as well as many equity funds to discover this fund has held its place, including PRPFX. It will track the happiness or lack of, the equity markets; and would be subject to melting down with a melting down equity market.
FLPSX A small yield (.4%); multi sector equity (70% sm/mid cap), 50/50 split of U.S and foreign equity.
FFGCX A small yield (.9%), commodity equity based; energy, materials, metals/miners and agriculture. 30% U.S., 70% international, generally large growth cap.
FSDIX Yields around 2.8% at this time. This is a large value related equity fund in various sectors. *** this fund is included for some yield, and potential equity growth in a slow/forward moving equity market/economic recovery. This fund did not do well in the 2008 melt.
Yikes, only one more....
OK, to add another equity to kinda balance the 50% cash...I will place
FCNTX Mr. Danoff/co-managers continue to do decent work with this fund; known to be a defensive play; but is a HUGH boat load of money to move around. This fund is listed as large growth equity, but has multi cap sectors and about 20% international.
Alternatively, regarding the 50% in cash reserves; I would place half of this (25% of the total portfolio) into the following:
FSICX This fund yields about 4.6%, and provides multi sector bond exposure, both U.S and int'l. 40% HY, emerging markets about 14%, developed markets about 17%, with U.S. exposure about 24%,
FNMIX This fund yields about 5.4%; and is pointed towards emerging markets bonds in both the corporate and gov't. areas.
FTBFX This fund yields about 3,7% and is invested about 80% in U.S. investment grade bonds and/or U.S. Treasury issues. The fund YTD seems to have measured its investments properly with the swings in bond sectors.
I do not have the time now to run these choices through the M* machine to determine the final mix of holdings and the overall yield.
As you have read this far, you have electronically signed my "hold harmless" agreement; which in part states that I MAY or MAY NOT know what I am talking about...:)
Lastly, you may easily (if not already set in place) establish the "brokerage" option with your Fido ROTH account, which allows you access to all the other non-Fidelity fund choices.
OK, hopefully; you may click upon the tickers and then select Morningstar for more details on the funds listed. I did a very fast review of the write and hope for no significant mistakes.
Take care,
Catch
boom/bang, just like that, now dows near 11500s levels. Any thoughts? Do you think we can break 13000s by end of the year? Everything is pretty much about momentum and swings, not much fundamentals left and personally, looks like everything almost random again... don't know if you should sell when you are near retirement and don't know if we should buy if you have 20s yrs left
The markets at times, reminds me of being at a marina. I don't need to see or feel the wind in my face; but only to hear the sound of the riggings on the sailboat masts and whether or not; and/or how hard is the sound. No sound, an occasional clang, clang-clang or hard and continous clangs. This tells me about how disturbed the waters are; causing the boats to rock at the surface.
And retirement, well one may be retired from "work"; but if we get the average life span, one surely can not retire from protecting and growing the investments; lest one runs out of MONEY, eh?
So, we're really in the same boat. You're attempting to grow your monies for retirement and we have to grow/maintain our monies near retirement and in retirement.
Regards,
Catch
I think I will stay the course, not much changes for now... 80s% equities and 20s% fixed income vehicles...