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.
while this is a bit maximalistic, the process is underway.... re today's indonesia upgrade fits more broadly into EM “upgrade” cycle, highlighting the fundamental strength of these countries from an investment perspective...
Max -- don't do sector funds. for your portfolio, which one might confuse with an emerging market allocation of a more diversified asset allocation, you need something little correlated with equities. May i suggest, GULP, something that has a dose…
Reply to @Sven: i have to apologize -- i assumed Vanguard has one, but have not checked. I have my hubby invested in Fidelity's FFRHX, since he doesn't have time nor desire to track investments. I however am a bit more active (often to my detrimen…
Reply to @bee: current distribution rate on share price, from the page you attachd, is 6.85%. I have for years trusted Nuveen with their closed-end fund offerings. A similar floating rate fund there (they have a few) would be JRO. It has a higher…
Reply to @Old_Joe: hello there, OJ. Have been quite busy recently. Also, trimming the number of my personal investments, so not looking much to add new funds/info. Hope all is well with you and yours.
Reply to @VintageFreak: small caps seem just @5% (could be a typo in the write up); US 25%, INternational 20% -- just a bit more than standard. A total of just 12 funds. From portfolio construction point of view -- extremely compelling and quite p…
Reply to @MaxBialystock: Max, it is indeed a great distinction to be "moderate" risk among the emerging bond funds (the riskiest bond asset class) or just "moderate" risk - period. Once you get other moneys, please don't pile up in high yield, anot…
Reply to @BobC: The difference here, Bob is that these funds are usually a fairly small portion of your clients' diversified portfolios (2-8% of total?). For Max, it is his only bond fund.
Reply to @MaxBialystock: never, Max; total return is. Highest dividends are usually paid by lowest credits, so reasonable care and understanding of asset class is always due before investment is made. take care.
Bee, unfortunately, your 1 and 2 requirements are difficult to implement simultaneously. To satisfy 2, you need high yield, levereged loans or EMD -- all of these distribute high taxable income. Why don't you stay with munis but convert into a sho…
funny, Investor. Consolidated January 3rd: just as you are contemplating -- sold MACSX and added to MAPIX. Correlation is extremely high, the rest of my thinking is exactly like yours. One line item fewer.
Reply to @Investor: it's not risky in terms of bond quality. it is risky because of their duration. you get a portfolio of high quality long-term bonds, which is acting as a short-term porfolio (like a money-market fund) because of the insurance co…
Reply to @Investor: much changed since 2008. no insurance company will provide a wrap contract if the porfolio is filled with junk. that is why the current yield on the funds is between 50 and 200 bps. different risk profile.
Please understand that a stable value fund is an investment grade bond fund with an insurance wrapper. You will not be able to "replicate" that at a low cost. If you're looking for a principal guarantee, only cash will do. If you would like some …
Reply to @bee: bee, what you've been doing is not hedging, but a classic asset allocation (smartly using uncorrelated classes) with periodic rebalancing at 10% triggers.
Reply to @msf: in addition, equity funds also have some of this, but not nearly to the same extend. If we get a lot of cash flows late in the day and it's too late to invest in individual securities, we "equitize" the target exposure and purchase f…
Reply to @msf: pimco uses a lot of derivatives -- leveraged plays on different exposures. Whether they are in the form of swaps or futures, they require collateral. Collateral is always "cash or cash equivalents or treasurys" the latter is usuall…
Here you go, Derf: - economic growth is to stay sub-par for a long period of time due to a) globalization; b) technological innovation; and c) aging of the baby boomers (who are transferring from investing to saving). Since the problem is structura…
they are not bad; they have a complex tax structure and tend to lose tax benefit if they are sold via any fund vehicle (open or closed). they should be purchased individually. there are no bad investments. there are bad investment decisions.
yeah.. many financial advisers and their clients got killed buying TBT in the last 12 months. i would NOT recommend such trade. one doesn't know the timing of increase in interest rates, and in the meantime the holder keeps paying the carry (inter…
why is a JPMorgan bond russian roulette again? i bet some emerging market bond funds have russian ruble in them, and korean won and chinese currency -- as undeliverable forwards, for example. why the doomsday comments? also, how is that relates t…
today is a good day in TIPs education. Treasuries at record low, but similar maturity TIPs are down -- due to drastically decreased inflation expectations (despite higher ppi). the break even point moved from 2.18 to 2%.
Reply to @catch22: i know... i once asked him to adopt me.. but he refused (something to do with the wife not approving)... it's great gentlemen that you continue this journey, from FA to MFO. you're the soul of the site.
right. and those correlations are perfectly intact today. by definition though, bonds will move less than equity (of the same or similar issuer). they will move less on the upside as they provide fixed coupon, and they'll move less on the downside…
hmmm. i am hearing that the price of used vehicles is equal to the price of the similar new vehicles on quite a few models... everyone feels guilty to go new... check the value proposition before you buy, and yes, this is a good time to get somethin…
