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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
Absolutely! Historically China has been invaded by foreigners and humiliated (opium war). Their doctrine is to compete and over-rule the West one way or other. Lately they have been exerting their political influence across the globe, some are qui…
I sent him a private message a week ago. Haven’t heard back. Like Old_Joe said that he would take a break and returns back to MFO eventually. Will report back when he replies.
Good to know. Bullard caused a stir in the market as he was pushing aggressively.
Some of the data take longer time to work themselves through the inflation calculation, so the reported CPI may be sticky or lagging the actual data being presented…
If they don’t have those critical tools, they may always stay a few steps behind. Make semiconductor chipsets is not like baking cookies. These chipsets are the enablers to build future technologies such as the James Webb telescope.
Only if they b…
Your guess on the inflation range is very reasonable. Except for Bullard (hawkish guy), a number of Fed members want to take a more gradual rate hike, i.e. 50 bps in December, and perhaps several 25 bps hikes in first half of 2023. I think US is ent…
There are a number of key elements to produce nanoscale complex chipsets that China does not have today. They are trying to the entire factories from Germany and England lately but they were blocked for national security reasons. China has come a l…
That was the terminal rate that we have been discussing here. Holding on CDs or treasuries with yields near that rates would be good for next several years. Don’ want to hold bond funds until the Fed starts to cut interest rates. My guess would be…
Good job. You have picked the stock with no comparable competitors for semiconductor manufacturing. Typically a top pick in growth funds.
Sold majority of our overseas funds last year and now holding few value names that dominate the European stoc…
An article from Schwab on inverted yield curve, plus other labor data and others.
https://schwabassetmanagement.com/content/market-perspective?render=print
Thanks for the article. My experience with overseas investing has been mixed depending on the time period. Back in the 90’s, actively developed market funds did equally as well as US. After 2008, they lagged considerably as US tech sector dominate…
Thanks for heads up. I see the same offerings at Fidelity. Have to wait a bit to have cash to deploy. At these yields they are doing better than treasuries of the same duration.
I am very sure that only short term loss can offset short term gain. Same goes for long term gain and loss.
The long term capital gains tax rate is 0%, 15% or 20% on most assets held for longer than a year. Short term capital gains taxes on asset…
I am selling those with negative cost basis (preferably all long term cap gain) but we don’t have many despite a poor year. Quickly we buy the equivalent ETFs to avoid future headache.
Donation is always good at this time.
The next rate hike will be in December’s FOMC meeting; most likely 50 bps. So the CDs will rise above 4.7% in mid December. I would add more CDs and treasury bills at that point.
Also there are several more rounds of rate hikes coming next year.…
Moving from Investor shares to Admiral shares at Vanguard is not considered a taxable event. The total value of the account is converted to the new Admiral share’s NAV. Nothing was sold and bought. I wonder if that can only be done at TRP.
Sharing on how to import images helps everyone. Here is how I do it on Chrome or Safari browsers:
1. click on the image in the article and it brings up an URL on the browser bar above.
2. copy the URL and paste into the green "picture" icon abov…
There are several more rounds of rate hikes coming through 2023. Recent October CPI and PPI data are encouraging that indicate inflation is slowing. Even at 7.2% it is still quite high. Additional data from November would ensure a lower rate hike i…
Thank you. The article helps to better understand the mechanics of trading on secondary market with different brokerages. Smaller lots cost a bit more in terms of bid prices and lower yields. Liquidity of treasury market is huge and thus it makes …
Another data point indicating that inflation is slowing. Treasury yields fell few basis points.
Another month of CPI and PPI improving data would help to slow rate hike in Dec.
Please be patient. Saw more 2-3 yrs non-callable CDs today at Fidelity; less offering at Vanguard.
Auction today for 13 week and 26 weeks treasury bills are yielding 4.2% and 4.6%, respectively.
Brainard mentioned today that a slower rate hike pace is possible. Really need more data point to get the rest to buy in. Timing is the question.
Seeing big layoffs in tech companies but it may take some time before it apprears in the unemployment…
The other advantage of treasuries is liquidity, so that you can go sell readily in secondary market if you need cash. Also you can buy lots of them in auction or in secondary market.
One can also build a treasury ladder with 13 week, 26 week and …
NYTimes is behind a paywall. However, Paul Krugman articles can be find in Apple News subscribers. Type in his name and search. Think this is the twitters posting davidmoran from earlier.
https://markets.businessinsider.com/news/stocks/paul-krug…
The terminal rate is projected to be 5.00-5.25% if the Fed maintains their path of rate hike. That is the worse scenario if the inflation fails to response to the rate hikes. Now there is an indication that it is slowing, and a more moderate pace c…
