Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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How To Invest In Bonds This Year: Q&A With Rick Rieder, Manager, BlackRock Strategic Income Fund:
"...technology is changing the economic ecosystem today, and the normal inflationary impulses that came from higher levels of growth don’t happen, because of things like price transparency [that consumers can access] that’s created through technology, because of things like inventory management and just-in-time hiring and logistics: You are creating a dynamic that doesn’t fit the traditional patterns of good-growth-creates-higher-inflation. We think that interest rates will stay historically low because the traditional inflationary impulses are not there......We like Mexico quite a bit in local rates form. India is one of the places that is extremely attractive with moderating inflation and a strong central bank, and better fiscal initiatives going forward. Indonesia is in a much better position than they have been historically. And then Brazil: While growth is moderating, we think policy will ultimately adjust to easier monetary policy and those rates are extremely attractive today......"
(Quoting:) "...You are creating a dynamic that doesn’t fit the traditional patterns of good-growth-creates-higher-inflation." Hmmmmm. Then, "what's a government to DO?!" What's a mother to DO? With a 2% inflation goal. And the growth you're working and hoping to see may come, but the end-result is not what you wanted, and can't be generated the old-fashioned way? (i.e., low inflation, as opposed to deflation or stagnant prices.)
"...technology is changing the economic ecosystem today, and the normal inflationary impulses that came from higher levels of growth don’t happen, because of things like price transparency [that consumers can access] that’s created through technology, because of things like inventory management and just-in-time hiring and logistics"
This makes some sense. Thanks @Crash for posting this quote. The transparency issue is timely because I was debating the auto insurance issue on rental cars which is a scam in my book. Using the web I found a alternative. Insuremyrentalcar.com. They are for real.
"The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor."
With the above in mind and related to the Blackrock article. Those folks surely know more than I, but agree with rjb112 that this fund is too expensive. I wish them well with the 33% in Treasuries.
"Rieder knows a thing or two about building a fixed-income portfolio. As chief investment officer of Fundamental Fixed Income for BlackRock, Rieder runs the firm’s $27 billion Strategic Income Opportunities (ticker: BASIX ). This low-fee fund....."
Hmm...... 4.0% load with a 0.90% expense ratio. Personally, I wouldn't call that a "low-fee fund".........
although M* lists the fee level as "Low"........maybe in comparison to other funds in M*'s Nontraditional bond category, but I would not call a 0.90% expense ratio bond fund a low fee fund, regardless of what the other funds are charging.
VBTLX, the Vanguard Total Bond Market Index fund, has an expense ratio of 0.08%. Certainly very far from an apples to apples comparison........but That is what I call a low fee fund. It's not easy to make money in the bond market when you start off with a 0.90% weight on your shoulders.
My own car's policy covers a rental, when I need to rent. They won't tell you that, though. And of course, you need a line-item in your policy for that.
The transparency issue is timely because I was debating the auto insurance issue on rental cars which is a scam in my book. Using the web I found a alternative. Insuremyrentalcar.com. They are for real.
Many auto policies cover rentals (and some states require residents' policies to do so). If you're interested in primary coverage and looking at Amex, they offer that as an option - it seems cheaper than the insurer John cited, though that seems to be oriented more toward long term coverage, while the Amex coverage is focused strictly on per-rental coverage.
Note that if you have an Amex-branded card issued by another bank (such as the Fidelity Amex rebate card), coverage will be different from what you get with the "true" Amex cards that Bee linked to. Also, I don't know whether you can purchase the Amex primary coverage using one of these "faux Amex" cards. Best to check with Amex.
I had linked that site because in my situation when I am stateside I need to rent a car to get around but I have no active insurance policy. The rental companies will get you royally on their rates. Having a card that has those benefits is great but mine last year decided to take those benefits off the table.
@JohnChisum - You may be in an unusual situation because you're coming from outside the US.
For US residents (including Guam and the Northern Mariana Islands), Amex offers primary insurance similar to the company you cited, charging a simple flat rate instead of offering a bevy of rate and coverage options.
Yes, the rental agencies are ripping people off, and it just keeps getting worse as they find new and creative ways to charge for insurance, for gasoline, for toll roads, for ... Sort of like the airlines - they hold the line on the base price, but if you want an airbag in the car or an oxygen mask in the airplane, well, that's extra. At least it seems that way.
I never take the rental insurance. We were in a string of cars rear-ended by a freight truck while waiting at a stop light in Florida several years ago. Our rented Ford Focus was one of 3 totaled. Driver got a ticket for failure to stop in time - nothing more. Florida law is no-fault. Can't even sue unless you die or are permantly disabled. We were shaken but walked away.
Budget rental was great. Had another vehicle at the accident scene in half an hour. Sent us a bill month later for well over $20K. Our Michigan insurer negotiated price and than paid off claim. No separate rental coverage on policy - but agent had previously assured us we were covered. Also waived the deductible.
Policy only includes this protection as long as we maintain full coverage on one vehicle. Were we to discontinue collision (just carry PLPD), would not have rental coverage. There may also be a limitation on that coverage up to the value of our insured auto. Can't seem to get a straight answer from agent on that one. We learned our Visa card at the time also carried rental car protection - as long as we rented with it. Not sure if that's still true.
Comments
This makes some sense. Thanks @Crash for posting this quote. The transparency issue is timely because I was debating the auto insurance issue on rental cars which is a scam in my book. Using the web I found a alternative. Insuremyrentalcar.com. They are for real.
"The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor."
With the above in mind and related to the Blackrock article. Those folks surely know more than I, but agree with rjb112 that this fund is too expensive. I wish them well with the 33% in Treasuries.
Hey, wishing you well with your invested monies.
Catch
http://rlv.zcache.com/laissez_le_bon_temps_rouler_bumper_stickers-rca8420deb9134b5eab6b52bd53eda7b6_v9wht_8byvr_512.jpg
Hmm...... 4.0% load with a 0.90% expense ratio.
Personally, I wouldn't call that a "low-fee fund".........
although M* lists the fee level as "Low"........maybe in comparison to other funds in M*'s Nontraditional bond category, but I would not call a 0.90% expense ratio bond fund a low fee fund, regardless of what the other funds are charging.
VBTLX, the Vanguard Total Bond Market Index fund, has an expense ratio of 0.08%.
Certainly very far from an apples to apples comparison........but That is what I call a low fee fund. It's not easy to make money in the bond market when you start off with a 0.90% weight on your shoulders.
"I was debating the auto insurance issue on rental cars which is a scam in my book."
I found this link for AMEX card holders:
americanexpress.com/us/content/card-benefits/car-rental-loss-and-damage-insurance-terms.html
Note that if you have an Amex-branded card issued by another bank (such as the Fidelity Amex rebate card), coverage will be different from what you get with the "true" Amex cards that Bee linked to. Also, I don't know whether you can purchase the Amex primary coverage using one of these "faux Amex" cards. Best to check with Amex.
https://www295.americanexpress.com/premium/car-rental-insurance-coverage/home.do
For US residents (including Guam and the Northern Mariana Islands), Amex offers primary insurance similar to the company you cited, charging a simple flat rate instead of offering a bevy of rate and coverage options.
Yes, the rental agencies are ripping people off, and it just keeps getting worse as they find new and creative ways to charge for insurance, for gasoline, for toll roads, for ... Sort of like the airlines - they hold the line on the base price, but if you want an airbag in the car or an oxygen mask in the airplane, well, that's extra. At least it seems that way.
Budget rental was great. Had another vehicle at the accident scene in half an hour. Sent us a bill month later for well over $20K. Our Michigan insurer negotiated price and than paid off claim. No separate rental coverage on policy - but agent had previously assured us we were covered. Also waived the deductible.
Policy only includes this protection as long as we maintain full coverage on one vehicle. Were we to discontinue collision (just carry PLPD), would not have rental coverage. There may also be a limitation on that coverage up to the value of our insured auto. Can't seem to get a straight answer from agent on that one. We learned our Visa card at the time also carried rental car protection - as long as we rented with it. Not sure if that's still true.
Regards,
Ted
Actually, where's the dis-connect? What do you think the insurance companies do with those premiums they collect? Stash them in a cookie jar?
Ted, sorry to interrupt your thoughts. However - Bonds have no future (uness you want to buy junk).
Regards