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I am all for skepticism but ETFs are so long-established and comparatively transparent (ARK notably) that comfort level does not really enter into it, except maybe for those who hated to move from tie shoes and try the daring, newfangled loafer thing.
FBALX has been a solid performer for many years. We've been in and out of various bond funds over the years. Not to chase a yield UP for the sake of earning money from yield, but when yields are moving DOWN to obtain the price performance from this circumstance. This is where the money is made, IMHO. After 40 years of good times, for the most part, I'm now resigned to the likelihood of a much more difficult period forward making decent returns with investment grade bonds. YUCK scenario for me. Bonds were named as dead "again" in 2009 or so. This was another bad call from the big kids. A lot of money was made from bonds until towards the end of 2020. Today, there isn't much wiggle room for yields; although a big market melt will drive folks to the good stuff...AA bonds.
As to Bitcoin. I expected formal push back from central banks a few years ago. Obviously, this has not taken place. I have a partial draft sitting about Bitcoin, but not enough time for a full adventure. What I had in mind was a "Bitcoin for Dummies". So, grab this title and run, or what ever your choice may be for wording. I have a 13 minute video (Bitcoin/Dummies) I'll add to your thread. My primary interest was to have a better understanding of this digital currency.
@davidmoran ... LOL... I only wear tie shoes. They may be long established...but I “feel” like there haven’t been as many sector, market cap or class options etc until recently (last year or so). Note I said “feel”... so maybe I’m just not as informed as I should be.
I have been watching ARKK, ARKG, and ARKF in recent weeks, after I cashed in a small position in ARKK. Whatever Ms Wood owns these days is obviously out of favor and there has been a rotation away from the stocks that were goosing her returns. Even on days like today when all averages were up, the Ark funds I watch had losses.
Today risk-on is back and the Ark funds are rising. What dismays me is that the fortunes of EMs, at least with respect to the ETFs (IEMG and NUEM) I follow, appear to be correlated. I’m dismayed because I had hoped my moves into EM we’re done on the basis of better valuations than domestic stocks. I’m not the first to note that asset classes are not much differentiated these days and it’s possible that EM funds experienced a hiccup because of the threat of inflation and rising interest rates. If my investments in EMs prove to be as volatile as the Ark funds, I may have climbed aboard the wrong horse.
@BenWP, interesting observation on EM. For now I stay put and watch the treasury yield as it is settling down this week. Read earlier that 10 years treasury will reach much higher than 1.5% by year end if inflation is rising. Nevertheless I am just watching ARK etfs. Have you considering the more value oriented EM funds instead of the growth type? They have been very volatile lately.
@catch22, no bitcoins here as I don't understand the risk and reward aspect enough.
@Sven: our largest and longest held EM fund is ARTYX, very much growth and the one that's dropped the most this year. We have a small position in MEGMX and a bit more in MASGX. I hope to be able to say in time that we bought those "early." Value? Not so much. I’ve been adding to NUEM on weakness, “early” also.
@BenWP, I also invested in ARTYX several years ago since i have previously invested with Mr. Kaufman when he managed Thornburg Developing World. The tech-heavy portion of the fund was impacted by the rising bond yield. Tech tend to do well in low interest rate environment but bonds become competitive in higher interest rate environment. Thus, I pair ARTYX with TRP Emerging Discovery fund that have more weighing in the value camp. There are other options too at Matthews as you indicated. Growth & Income and Dividend are good options. Bond settled a bit this week but I like to spread out the risk on EM. I am now watching the treasury yield more closely now. Friday’s yield has moved up and NASDAQ drops.
The big unknown is how high and how fast the yield increase will be this year as the Fed tackles inflation.
@catch22, thank you for the clarification. I am too learning more about bitcoin and cryptocurrency. Interesting note is that Fidelity does not have access to Bitcoin.
I don't think either Apple or Facebook is a force for good. They're corporations. "Goodness" to them is not the end goal. Profits are. If you want to find businesses that are a force for good, probably the closest you could come to that is a B Corp or Benefit Corporation: https://en.wikipedia.org/wiki/Benefit_corporation
This link is directed to ARKG, the bio-med, genomic related etf. The short write contains a podcast. While some may consider this is an info-mercial for ARK; education is within the discussion. We've had interest, in particular related to CRISPR; for several years. Anyway, if you're interested; have a listen as your time allows. Another area we've been following is Nanobot technology, and in particular the use of these within the body. There are numerous video presentations to be found for a better understanding. Nanotech, broad search link. At this link you may select the "videos" tab, too.
Comments
Second that.
FBALX has been a solid performer for many years. We've been in and out of various bond funds over the years. Not to chase a yield UP for the sake of earning money from yield, but when yields are moving DOWN to obtain the price performance from this circumstance. This is where the money is made, IMHO. After 40 years of good times, for the most part, I'm now resigned to the likelihood of a much more difficult period forward making decent returns with investment grade bonds. YUCK scenario for me.
Bonds were named as dead "again" in 2009 or so. This was another bad call from the big kids. A lot of money was made from bonds until towards the end of 2020. Today, there isn't much wiggle room for yields; although a big market melt will drive folks to the good stuff...AA bonds.
As to Bitcoin. I expected formal push back from central banks a few years ago. Obviously, this has not taken place.
I have a partial draft sitting about Bitcoin, but not enough time for a full adventure.
What I had in mind was a "Bitcoin for Dummies". So, grab this title and run, or what ever your choice may be for wording.
I have a 13 minute video (Bitcoin/Dummies) I'll add to your thread.
My primary interest was to have a better understanding of this digital currency.
@catch22, no bitcoins here as I don't understand the risk and reward aspect enough.
I/we do not have any direct investments in any Bitcoin products.
My note previous in this thread was in to reply to Jon.
I also invested in ARTYX several years ago since i have previously invested with Mr. Kaufman when he managed Thornburg Developing World. The tech-heavy portion of the fund was impacted by the rising bond yield. Tech tend to do well in low interest rate environment but bonds become competitive in higher interest rate environment. Thus, I pair ARTYX with TRP Emerging Discovery fund that have more weighing in the value camp. There are other options too at Matthews as you indicated. Growth & Income and Dividend are good options. Bond settled a bit this week but I like to spread out the risk on EM. I am now watching the treasury yield more closely now. Friday’s yield has moved up and NASDAQ drops.
The big unknown is how high and how fast the yield increase will be this year as the Fed tackles inflation.
@catch22, thank you for the clarification. I am too learning more about bitcoin and cryptocurrency. Interesting note is that Fidelity does not have access to Bitcoin.
Apple is ‘a force for good,’ Facebook not so much: Walter Isaacson
I happen to think that he's correct.
We've had interest, in particular related to CRISPR; for several years. Anyway, if you're interested; have a listen as your time allows.
Another area we've been following is Nanobot technology, and in particular the use of these within the body. There are numerous video presentations to be found for a better understanding. Nanotech, broad search link. At this link you may select the "videos" tab, too.