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Do you think that the banking and loan industry will benefit? Maybe financial services will replace healthcare as the go to sector for 2015.
You know, I think for a number of reasons mortgages and loans will probably still not have the kind of demand that the industry would hope for, but I think if there was a noticeable and sustained move higher in rates that would likely get people who have been waiting around to move.
Rates have been low enough for long enough that perhaps some people interested in a loan have become complacent and have been waiting for even lower rates or they think rates aren't going anywhere.
I really don't have any interest in the financials from the standpoint of I don't think anyone truly has any real visibility. Several years after the financial crisis, the major banks are still fined for some bad deed at a rate that seems to be once every month or two.
If you look at the ten year, it wandered around the 1.50-1.70 neighborhood for 2012 into 2013, then in Spring of 2013, it ramped higher. Early this year, it fell back into that neighborhood again and bounced. Perhaps that area is/was the bottom?
M* seems to have a love / hate relationship with this fund. One Star yet gets a Silver badge. I wonder if there are any One Star / Gold funds out there?
FAIRX may soon be the first.
YTD, SHLD has had some surprising "ups"...19% since New Years Eve.
I believe this funds will raise or fall on its AIG bet.
AIG has a PE of just over 10.6, Price to book of 0.7 and some other impressive financials:
As of 8/2014, FAIRX sold 6M shares of AIG...has Bruce B. mention his reasons for reducing AIG by nearly 9%?
@Bee - one report I read with respect to the AIG position is that between the stock + the warrants he doesn't want the issue to get to far beyond a 50% holding in the fund. FWIW that could have been the writer's/analyst's best guess.
Comments
Rates have been low enough for long enough that perhaps some people interested in a loan have become complacent and have been waiting for even lower rates or they think rates aren't going anywhere.
I really don't have any interest in the financials from the standpoint of I don't think anyone truly has any real visibility. Several years after the financial crisis, the major banks are still fined for some bad deed at a rate that seems to be once every month or two.
If you look at the ten year, it wandered around the 1.50-1.70 neighborhood for 2012 into 2013, then in Spring of 2013, it ramped higher. Early this year, it fell back into that neighborhood again and bounced. Perhaps that area is/was the bottom?
M* seems to have a love / hate relationship with this fund. One Star yet gets a Silver badge. I wonder if there are any One Star / Gold funds out there?
FAIRX may soon be the first.
YTD, SHLD has had some surprising "ups"...19% since New Years Eve.
I believe this funds will raise or fall on its AIG bet.
AIG has a PE of just over 10.6, Price to book of 0.7 and some other impressive financials:
As of 8/2014, FAIRX sold 6M shares of AIG...has Bruce B. mention his reasons for reducing AIG by nearly 9%?
No, there are none at the moment. There are five two-star Gold funds; three are Vanguard indexes and two are actively managed Manning & Napier funds.
There are four one-star Silver funds: Vanguard FTSE All-World exUSA Small Cap Index , Fairholme, FPA Capital and Perkins Mid-Cap Value.
David
@David_Snowball...This M* "dual descriptor" reminds me of the oxymoron, "Jumbo Shrimp".
Should one be more impressed at the twinkle of the stars or the mettle of the medal?
Thanks for your uncanny ability to uncover the other funds?
BTW, I see AIG as a 47% holding of FAIRX, when you take the common stock plus the warrants
IIRC, at one point it was about 52% common stock plus warrants.