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Sven
Lynn,
Thank you so much. I am planning on a 3-year ladder since I am a year away from retirement. Lots of spreadsheet work to calculate the income replacement needed. This ladder will create a steady income stream. So thank you for all your help.
I moved back to high quality bond funds this year. Some of which you covered in the SA article. For now, I will stay with agency bonds to the bond ladder. I will pick active managers for corporate bonds.
Sven
Perhaps you can consider posting it under “Other investing” since the consequences of political spillover on the financial market is real. US treasury is considered the gold standard and it was downgraded by Standard & Poor during Obama’s admin…
You have a knack for reporting past performance.
Too funny!
@PRESSmUP, I maintain mostly 70/30 in short/intermediate-term bond allocation. Active managed funds I am using have done very well and expect to continue in the near term. And they ha…
@PRESSmUP, the Barron’s article you posted is spot on with respect to duration and credit (quality) argument.
Excerpt: major indexes essentially bets on “duration,” or interest-rate sensitivity (since government-backed debt isn’t considered to hav…
Mike Johnson was among those who want to subvert 2020 election. Now he is not responding to these questions.
A New York Times article last year called Johnson “the most important architect of the Electoral College objections” on Jan. 6, 2021. Hi…
Took too long to kill off this expensive index fund, whereas their competitors are changing only several base points.
Edits: This is a tough place for T. Rowe Price to compete against BlackRock and Vanguard for their ultra low ERs. Either TRP fo…
Agree with @Old_Joe. It is a slow train wreck in GA case and rope only tightens.
I try to ignore the news as the titles are silly. Fact is that the bond vigilantes is back and demanding higher yield while the earnings are mixed (and expensive). F…
Thanks @yogibb. I too use Portfolio Visualizer, but not as much with StockCharts. M* used to be pretty useful but its capabilities have diminished considerably. Not paying them anywhere.
The 20 year period data is more meaningful since it over several economic cycles. One can see the ups and downs and the overall effect on the asset class returns.
Shorter time frame of 1, 3 and 5 year returns tend to be less reliable in my honest…
This Associate Press article describes the working process and people involved in an attempt to overturn a democratic election process in George. Chesebro is only one the figure but the entire Georgia GOP was behind this.
Quite chilling and this …
One needs to assess the situation carefully:
1. Returns after the annual inflation. This year is about 3-4%.
2. Returns after federal and state tax. These instruments are tax as ordinary income on federal level. T bills are state tax exempt.
If…
I believe D&C is changing their funds to institutional shares and they need to be registered with SEC. They are still sold through Fidelity Retail brokerage, but it has not been completed yet.
Loeys is avoiding government bond, high yield, and oversea (currency) bonds while he is okay with foreign stocks. Also he is avoiding commodity and tech sectors and they can be added when necessary. So there is some level of customization in his a…
Agree. That following article has additional details.
Interesting quote coming from JPM asset allocation expert.
The danger is that many of us tend to overrate our ability to call the market short term. It is our perception that the most succe…
Nice article for owning more bonds than stocks. It has been challenging this year when investment grade bonds trail junk bonds by a wide margin. With the recent geopolitical turmoil, treasury may return.
Matthews Asia funds were the go to shop for investing in Asia. We left then when Andrew Foster left to form Seafarer funds which we are happy investors. Never hear the whole story on how Matthews went downhill quickly.
My limited experience with small cap indexes have less than satisfactory, but will track IJR and SPSM as you recommended. Right now, small caps are far from being “fat pitches”, at least for us.
This year is challenging for smaller cap funds when the broader index is dominated by the large tech stocks. Only one out three, FMIMX, did decently, the rest trailed considerably. So we pause until the market broaden out. Not indexing in the smal…
Over a 10 year period, 2013-2023, 40% of annual performance in the bottom quantile (2013, 2018, 2.21 and 2023). Think there are better funds out there.
US inflation the last year has been under 4%. .
Exactly. Cash position is for short term only to pay bills and others. Stocks, the most volatile asset class will likely be ahead of inflation in the long term.
When money market pays little for …
Mohamed El Erian actually said, … adopted a “barbell approach”, allocating more of his personal portfolio to low-risk cash and cash equivalents paying decent rates of interest, while at the same time increasing his exposure to much higher risk dist…
Personally I don’t think so. Treasury Direct is set up to run by itself, and transactions don’t require human action. You put in your order (redemption) and the system will able to execute the order.
Now trying to talk with a live agent on a ti…
Crap, that is a lot of money lost! Just the three top funds ETFs, they sum up to $40 billions.
I can see ARK Innovation ETF, can loss ton of money from speculative bets. Vanguard Total bond market index, BND, for example, is in just about every…
In light of this year interest rate environment, RSIIX has done exceptionally well with little volatility. Who would guess that quantitative tightening is affecting the longer end of bonds. Your interview was most insightfully and I really apprecia…
Adding more to 6 month T bill and RSIIX, River Park Strategic Income, Institutional. This fund is on NTF platform at Vanguard whereas Fidelity charges $50.
David provided a detailed write-up on RSIIX/RSIVX.
https://mutualfundobserver.com/2023/04…
Those FR ETFs are doing well this year. Other FR/BL funds are up 8-10% YTD. As short term junk bonds, they do have downside risk during stress period such as March 2020 (COVID-19) and lost in high single digits. BL/FR recovered in the same year as…
Agree than 3 month T bill is good for yield over 5.3% (1/4 of that for 3 months). So I am buying longer duration T bills, 6 months and 1 year T bills. 6 month is the sweet spot.
Buying individual T bills and rolling it when they mature takes a …
@junkster, as imperfect as it may be, I use BKLN ETF as proxy for BL/FR funds. It peaked on Sept 15th and has been trending downward ever since. Are there better alternatives? I hold majority of BL/FR in PRWCX. The fund holds about 10-15 % BL and …
@ Crash, as of September 9th, @junkster said ,
I trade only bond funds because of their persistency of trend combined with their lack of volatility. There are exceptions, but since 2000 there has always been a bond category that has beaten the S@P…
The longer end of yield curve is moving up since September. Today, the 10 year treasury yield rises to 4.81% from 3.79% as of 1/3/2023. Bonds got crush...
Bought 6 months and 12 months treasuries this week as other T bills matured. Will watch on…
