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.
The main losers were retail investors who own USO. There was forced selling because the ETF had to roll from the May contract to the June contract and they cannot accept delivery. ETFs like this are toxic waste and should not be allowed.
I also like Whitney George. He runs a closed-end fund -ticker FUND for Sprott. He eats his own cooking and personally owns around $80 million of FUND (or 38% of the shares).
Anna- Actually their average net worth seems way too low. Medina has a population of around 3,000. Just bezos and Gates alone have a net worth over $200 Billion. So the "average net" worth of Medina is at least $60 million. Of course the median is m…
I claimed at age 62. "A bird in the hand is worth two in the bush". But the main reason I claimed early is because my tax bracket is goig up at age 70 because of high IRA RMDs.
The title of this article should be changed to "Are High Fee Mutual Funds Fading Away?". It is not so much active or passive that determines better returns. Lower fees are a big advantage regardless of whether the strategy used is active or passive.…
Tony Seba has also been predicting that solar costs will be dropping. He also predicts that private ownership of cars will soon be almost obsolete:
https://tonyseba.com/portfolio-item/clean-disruption-of-energy-transportation/
Here is an easy way to participate for someone who plays the lottery regularly. Let's say you normally buy $10 a week in Powerball tickets, or $500 a year. Make a pledge that for one year, you will not buy any Powerball tickets and instead take the …
I'm not sure this is much of a problem because there are so many different indexes. And many indexes are quite narrow. Selecting which index to invest in is also a form of active investing.
It's not just retail jobs. Amazon Web Services (AWS) may destroy many other jobs AWS sharply reduces the need for the relatively high paid people who work in data centers.
JoJo26:
Depends what you are trading. For very liquid ETFs like SPY, even fairly large trades would not move the market. But I know for some small ETFs, even a transaction of a few hundred shares can move the market.
A big advantage of commission free ETFs for advisors is that you can split up your trade into many smaller pieces so you have less market impact. Let's say an advisor wants to buy 10,000 shares. Instead of entering one order for 10,000 shares which …
How come Swedroe never mentions Medallion Fund which has crushed the market year after year with very active management-
https://www.bloomberg.com/news/articles/2016-11-21/how-renaissance-s-medallion-fund-became-finance-s-blackest-box
The article does not mention any investments where F-Square lost money (which presumably would have saved the mutual funds money). Does anyone know what the long term returns have been for F-Square?
Human capital is not a part of one's net worth... Regardless, if accurate, these numbers are embarrassing...
Human capital technically may not be part pf net worth, but it is critical to include it in any evaluation of how a person is doing fina…
The article is misleading because it omits "human capital"- the present value of all future income earned from labor". For most young people, human capital far exceeds their actual capital. Even for many seniors, human capital is not zero- some seni…
The first 11 trading days of September have been positive. It is the last 13 trading days that have negative returns. Wait until September 13 before selling :>)
Many of the home contractors in my neighborhood ask to be paid at least partially in cash (e.g. off the books). I wonder if this trend has been growing across the country which causes the reported growth numbers to be too low.
Here is Gundlach's "Sell everything" call from January 13, 2016 when the S&P 500 was around 1880:
http://www.marketwatch.com/story/gundlach-warns-investors-not-to-be-a-hero-in-this-wild-market-2016-01-13
For large trades, open-end mutual funds are often superior to ETFs because there is no bid-asked spread. SPY is liquid with a tiny spread, but many of the less liquid ETFs can cost you 0.25% or more. On a $200,000 trade, that is $500 or more.
Reuters has been a Jeff Gundlach "groupie" and only write favorable articles about him. But Fortune has written a more balance piece:
fortune.com/2016/07/14/jeffrey-gundlach-bond-king-doubleline/
Just finished re-reading Ben Graham's "The Intelligent Investor" written in 1949. This was also a period of very low interest rates. For conservative investors, Graham recommended only US Savings bonds at that time because there was no risk of capit…
They are very late to the party. The PCI discount was over 15% in December, 2015. The more savvy CEF traders will be selling into their buy recommendation.
AndyJ-
I agree that Jeff has some talent in trading fixed income mortgages. The problem is that he is getting distracted from his core competency and recently is focused more on getting media attention (along with Bill Gross who has the same proble…
Jeff was recommending the gold miners in November, 2012. He rode them all the way down and is now riding them up, but he is still way under water. In November, 2012, GDX was 45.93 and it is now 30.57.
http://blogs.barrons.com/stockstowatchtoday/201…
Last night when I went to bed, the British pound was getting murdered and S&P futures were down well over 5% and I was afraid of a real bloodbath this morning. But the S&P actually rallied strongly this morning- only down about 2% now.
Bill Gross and many others are "talking their book" by trying to set the bar as low as possible. The same thing is done with executive compensation, where CEOs earn huge bonuses by exceeding very low expectations.
Bill Gross has around $700 million invested in JUCDX, so he is paying Janus around $7 million a year in expense fees. I wonder what he earns as compensation every year?
Anything under $7 million and he would be better off (financially) if he retired…
Perhaps there can be a compromise where the income tax is gradually phased out and the VAT is gradually phased in over many years. They would also increase the FICA cap gradually but at a more rapid pace than in the past (say 15% a year).
My daughter has a 403b and I advised her to put in as much as she can. The match is only around 5%, but she contributes about 25% a year of her salary.
I wonder if Jennifer Ablan or Reuters has some sort of arrangement with Jeff Gundlach. They always write about his successful predictions and conveniently forget to mention when his forecasts are completely wrong, like in January and March of this y…
Read Edward Gibbon's "Decline and Fall of the Roman Empire"
No one knows how well the stock market will do over the next 50 years. Could be over 10% annualized returns, but also could be negative returns. Looking back over the last 150 years is not …
