Only 1 fund in the green. Price’s enhanced bond index fund (PBDIX) gained a bit. Oddly, my Latin America fund PRLAX held up better than most, falling only 0.42%. It’s been rocking up and down like a badly floundering boat for several days now. Hard to understand daily swings as great as 3% on that one. Precious metals fell a bit, but the miners held up better than broader market. PRWCX lagged my other balanced funds for a change. Something came across Bloomberg about those using put options (apparently to generate income and hedge equity exposure) taking a hit today. Not my cup of tea - but PRWCX plays in that area a bit.
The politicians don’t want this in an election year. Expect Congress will get back to the stimulus board if it lasts for long.
Comments
Stay Safe, Derf
VUIAX was up in my taxable. FFRHX and DBLSX were up in my IRA. PIREX and FTHRX were up for my wife's IRA.
VUSFX, which I use in lieu of cash, was flat for the day.
My other funds were down -0.13% (DODIX) to -3.77% (VWILX).
Couple private bonds went up slightly +0.15 to + 0.25%
In two wks many people maybe crying double dip or W recovery. WE will see
https://ritholtz.com/2020/09/10-friday-am-reads-290/
https://ritholtz.com/2020/09/10-friday-am-reads-290/
“Be sure to check out our Masters in Business interview this weekend with Morgan Housel, former writer for Motley Fool and WSJ, and partner at Collaborative Funds. His new book, The Psychology of Money: Timeless lessons on wealth, greed, and happiness, will be out September 8th.”
Lot of smart people been warning us for years about the excesses. Alas! What to do? Possibly cash at 0% is the “better” option at this time. What do I know? Stan Druckenmiller is another smart one who’s worried about valuations. And a reading of Mutual Fund Observer‘s back issues for several years brings up cautionary flags from David and others. I’m weird. I like Fleckenstein and subscribe to his daily rants. He’s about as bearish on equities as it gets. I don’t recommend him to most because I think he’d scare the **** out of you and have you run to cash - or gold which he likes.
Personally, equities have been good to me for the past 50 years, with a few scary times in between. So, I’m not about to “jump ship”, although at nearly 74, I’m widely diversified with perhaps 30-40% in equities. Some bonds. Some commodities. Some cash. Some hedge-type funds. People don’t think there’s inflation. Look at what you paid for a house or a new addition to your home or a new car 10, 20, 30 years ago and tell me that. Sure, TVs and computers have fallen in price. You can’t eat them, drive them or sleep inside of one.
@davidrmoran, All that proves is that you and I happen to know different people.(Duh).
I’ve cautioned you before about making universal blanket assertions and attempting to communicate using such linguistic absolutes .
More to the point, I happen to know some folks that don’t bother to check or challenge their faulty belief by running the multi-decade comparison suggested in my post. These are people, often poorly educated, who live very much “for the day” and likely have problems with credit, delinquency, low standard of living, etc. Most don’t buy new cars. If I wanted to fall into your linguistic trap I might have said “Everybody believes ... ”. But I didn’t. I imagine these people base their misconception on overheard news blurbs about the Federal Reserve fighting to raise inflation to 2% and draw unwarranted inferences from that. And they recall a couple recent years when there was no COLA added to their Social Security check.
A couple excerpts from another work I found for you to read:
The problem: “Universal Quantifiers” is the label for words such as: always, never, all, every, everybody, (nobody) and every time. They are linguistic generalizations that restrict or omit possibilities to see, hear, and feel a different experience. They create boundary conditions around segments of life, based upon past experiences, and they limit our ability to think outside the barn now and in the future. In neuro-linguistic programming terms, they impoverish our model of the world.”
The solution: Consciously replace the word.
Always – often
Never – rarely
Every time – frequently
Everybody – a lot of people
All – many
https://www.thinkinoutsidethebarn.com/e-zine-archives/never-ever-syndrome/
Please work on it as it’s a waste of time having to set you straight every time you jump on one of my posts with meaningless comments like that.
Shaping up to beYesterday was another good day for small cap value, and value generally.Of course I know it's Saturday.
You make it easy to deploy what you object to. Please, name one person on the face of the Earth, anyone, who thinks this:
>> People don’t think there’s inflation. Look at what you paid for a house or a new addition to your home or a new car 10, 20, 30 years ago and tell me that.
Losers and suckers!