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@LLJB "Unfortunately, as of last month, all 5 of those stocks were in DSENX". That could explain bad results for the fund last days. However, DSENX is supposed to invest in value stocks, while all FAANG are considered growth ones. Can you please pr…
Interesting, that these tech market leaders have nothing to do with Trump's stocks - industrial, financial and defense. Tax cuts if that happens would equally affect all companies, big and small. So what is a reason for that frenzy?
Fidelity does the same for cash accounts, that probably makes sense for tax purposes. But for tax sheltered accounts cost basis is zero for reinvested dividends and cap gains. TDA shows everything as for cash accounts.
@msf I think you gave the most probable explanation of the price increase after the bankruptcy:
"Many PR bonds were already in default. I received letters last year on PR bonds I own saying that they would be missing payments. So any action, even "b…
@Sven Puerto Rico bonds are exempt from federal and ANY state taxes. That is why OPCAX, CA muni fund I own holds 11% Puerto Rico muni. The fund is up 0.83% today. Even ORVAX with 33.8% Puerto Rico bonds is up 0.36% today. Something I do not underst…
@msf We still have in some places rather confusing and probably outdated definitions of hybrid funds. For example, Investopedia divides hybrid funds on balanced and asset allocation, depending on managers' flexibility to adjust the allocation.
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@Old_Skeet Thank you for your answers. I was under impression that you could identify some balanced/hybrid funds that change asset allocation based on market conditions as opposed to the funds that have more or less fixed ratio of stocks and bonds. …
@Old_Skeet How do you distinguish hybrid funds from balanced funds? As far I understand the difference is the level of flexibility to change asset allocation based on the market conditions. Usual MF listings do not separate hybrid funds into a separ…
Any index is a portfolio of stocks, selected by using some rules. I am wondering what is so special about S&P 500 index, that it is very difficult to beat its performance. It seems to me that, at least theoretically, it is possible to create ano…
What I like about DSENX is that its stock selection is based on mathematical model instead of human selection subject to emotions and other drawbacks. The model for CAPE index was back tested for at least 15 years and it shows very good results co…
@Junkster Thanks. I think I understood that. A big difference between price and NAV for HY ETF will be corrected next day by adjusting bond prices and therefore price of open end funds.
DSENX is my biggest equity fund (about 20% of portfolio) and it is growing together with my confidence. I am ready now to make it a core position (buy and forget) like a few other funds PRWCX, VWINX, PONDX.
@Junkster Did you trim your bank loan position? It seems to me it should be safe during a correction caused by stock overvaluation. SAMBX is up 0.11% today when everything is down.
My understanding is DSENX is using index swap to buy CAPE index. Instead of paying investors' cash for the stock index it invests all money into fix income instruments and then exchange (or swap) fix income return with CAPE index through an agreeme…