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I'll second Scott's comment on diversifying. Just curious, what made you settle on MSCFX as your small cap. It's such a new fund and I don't see a lot of history for the manager. I know Mairs & Powers is pretty solid with large caps, but is this their first fund in the small cap arena?
Hello. Among others I'm considering are SFGIX and BERIX. You'll laugh, but due to the fact I'm married (hee hee hee) I'm always "cash-poor," though not technically nor statistically poor. It was a portion of a chunk of inheritance money that went into those two funds: DODIX and MSCFX. The only, single, solitary other RECENT move I've made was to reduce my MAPIX holding by transferring just a few thousand into MAINX, thus opening a position there. So the portfolio holds SIX, up from four, funds, at the moment. However, three are with Matthews Asia: MAPIX, MACSX and MAINX.
I "settled' on MSCFX because it IS so new. Wanna get in on the ground floor. The M & P house carries a good reputation. I "looked before I leapt." I did not want to go BACK into PRSVX, now that I am not "married" to TRP, as I was with the 403b---which has been morphed into a Rollover (Trad.) IRA. PRSVX felt stale to me. Along with the Market, it's had a good run-up. So has MSCFX. So I'm catching the wave maybe just before it breaks. But I'll be "in" for the NEXT wave.....I have a liking for small-caps. Yes, this is the first M & P small companies fund. With my holding in PFE, it is my only DOMESTIC holding.
So now, in order of size, here's what the portfolio looks like: -PREMX -MAPIX -PFE (also inherited.) ..............................These three represent 89% of the total.
-MACSX (the only regular, taxable account. All other mutual funds are Trad. or Rollover IRA.) -MAINX -DODIX and MSCFX
I "hear" you, Scott. Over time, I'll be deliberately working to dilute that heavy concentration in my top three. But at the moment, I don't want to break it up just to break it up. I WANT that PREMX monthly dividend to GROW. I'm reinvesting ALL dividends and cap. gains in ALL holdings. MAPIX, MAINX and DODIX give quarterly payouts. MACSX is twice per year. MSCFX = annually.
Hi Max. I'm certainly no expert, so you can take my comments with a grain of salt. Seems you have always put a premium on dividend returns over total return. I actually don't see a problem with that since dividends smooth out the ride. The bigger concern I guess (and I know you've heard this before) is the huge over-load in emerging markets, especially Asia. So I applaud your domestic equities and bond purchases with DODIX and MSCFX. The US stock market is not going away and will not be over shadowed any time soon. Not in your or my life time anyway. Emerging markets will continue to grow, but the swings up and down will be pretty big. Even EM bonds take huge drops. A swing down just when you need the money from that nest egg could be devastating. So, the reason for diversification.
Sorry if I sound preachy. Good luck to you "Jack".
Reply to @MikeM: I own Marketfield, whose views on emerging markets differ from my own (MFLDX) and that fund - at last check - remains short. While I don't agree with the MFLDX managers on EM or a couple of other of their macro views, I do respect their long-term record and the fund provides something of a mild balance against some fairly large EM holdings (although I have more in individual EM stocks at this point than EM funds.) Marketfield's considerable flexibility also mean it may look quite different 3-6-9 months down the road, but in the meantime, I respect the management enough to allow their differing views into my portfolio.
EM bonds are an increasingly popular asset class, but as you noted, they are certainly not without the ability to take substantial drops. Additionally, I think the asset class is still relatively illiquid in some cases, which can make downturns like the one the asset class had in 2008 all the more swift. Diversification is a must and while I've had periods of huge allocation to EM (I had no US holdings a couple of years ago), I have moved to what I would call a more comfortable long-term allocation to EM, although in particular trying to look a bit more towards EM consumer plays.
I also think yield can't be everything; while I suppose it's fine if it's a non-taxable account, I think otherwise you could have the unexpected happen - a rise in dividend taxes or other policy changes (not extremely likely, but with the government looking for income, who knows. Again, unlikely but just the thought that income-related investments can't be everything.)
Just read through your latest comments along this thread. Thank you, all. I am quite aware, by the way, of the difference between total return and dividend return. There will be periods like '09 when the Market zoomed up because it was being goosed by government policy, after the criminal shitheads almost blew up the world--- because government was asleep at the wheel. I was strong and courageous enough to stick it out, not pulling out, but ADDING to my investments through those dark days. Given my age and circumstances (semi-retired, these days) I can conclusively say that I will never be wealthy. And I may never make use of my investments. I might just keep trying to grow the nest egg so my spouse, son and family can use it later on. .....And it is crystal clear to me that Mr. Market is never going back to the "go-go 1990s," an era when everything kept moving upward, day after day. We are in a New Normal. Total returns will be muted, going forward. Therefore I am indeed more conscious of how much I am receiving in dividends.
The West will be digging out of its gargantuan debt for generations. Markets will suffer because Markets are built on greed, and eschew regulations and taxes. Both of those realities MUST loom larger in the days to come. Total return may be found by traders who run in and out of Stock X or Y or Z, not mutual fund holders. Years ago, I tried picking individual equities. That's why I'm in funds, now.
Reply to @MaxBialystock: Max, I had to double-check that to make sure I read it correctly. 89% in top 3? That's downright Berkowitzian. Talk about conviction !
Comments
I "settled' on MSCFX because it IS so new. Wanna get in on the ground floor. The M & P house carries a good reputation. I "looked before I leapt." I did not want to go BACK into PRSVX, now that I am not "married" to TRP, as I was with the 403b---which has been morphed into a Rollover (Trad.) IRA. PRSVX felt stale to me. Along with the Market, it's had a good run-up. So has MSCFX. So I'm catching the wave maybe just before it breaks. But I'll be "in" for the NEXT wave.....I have a liking for small-caps. Yes, this is the first M & P small companies fund. With my holding in PFE, it is my only DOMESTIC holding.
So now, in order of size, here's what the portfolio looks like:
-PREMX
-MAPIX
-PFE (also inherited.)
..............................These three represent 89% of the total.
-MACSX (the only regular, taxable account. All other mutual funds are Trad. or Rollover IRA.)
-MAINX
-DODIX and MSCFX
"Break a leg," everybody!---------Jack. ("Max.")
Dang.
Sorry if I sound preachy. Good luck to you "Jack".
EM bonds are an increasingly popular asset class, but as you noted, they are certainly not without the ability to take substantial drops. Additionally, I think the asset class is still relatively illiquid in some cases, which can make downturns like the one the asset class had in 2008 all the more swift. Diversification is a must and while I've had periods of huge allocation to EM (I had no US holdings a couple of years ago), I have moved to what I would call a more comfortable long-term allocation to EM, although in particular trying to look a bit more towards EM consumer plays.
I also think yield can't be everything; while I suppose it's fine if it's a non-taxable account, I think otherwise you could have the unexpected happen - a rise in dividend taxes or other policy changes (not extremely likely, but with the government looking for income, who knows. Again, unlikely but just the thought that income-related investments can't be everything.)
https://news.fidelity.com/news/article.jhtml?guid=/FidelityNewsPage/pages/fidelity-finding-yield-now&topic=investing
The West will be digging out of its gargantuan debt for generations. Markets will suffer because Markets are built on greed, and eschew regulations and taxes. Both of those realities MUST loom larger in the days to come. Total return may be found by traders who run in and out of Stock X or Y or Z, not mutual fund holders. Years ago, I tried picking individual equities. That's why I'm in funds, now.