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.
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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
a@yogibb said,
CME FedWatch THIS evening is showing these rate changes and probabilities (see image) for the next several FOMCs:
+25--+25--hold--cut--cut--, etc.
That sounds reasonable as US is approaching the end of the rate hike cycle. So we …
I watched that too and her speech was meant to calm the market. That why I ask if there is something else I missed.
First Republic Bank got a whole lot more problem than just “run on the bank”. Over the weekend, several large banks pledged $30 b…
Thanks for the article. These days it is all about the rating just as Fox News. Talking about journalism malpractice.
Senators Warren is spot on and she and a number of Democrats voted against passing the 2018 deregulation on part of regulatory …
Morningstar’s take on Buffet potential help with the regional banks.
Any Berkshire Action Would Like Be Capital Injection, Not Acquisition
With all of that in mind, we would expect any action on the part of Berkshire-Buffett in the near term, with…
I am sure Powell is aware of something is broken within the banking system due to the unprecedented rate hike’s magnitude and pace. Clearly, something needs to be redone on the stress test that failed to catch these banks. Senator Elizabeth Warren…
Futures on gold is rising while treasuries are falling. Oil and commodities recovered a bit. US stocks are up a bit. Europe is down. Japan is up. Think I will wait and watch.
https://finviz.com/futures.ashx
@ dtconroe and @DavidF, please see @bee’s posting on WealthTrack.
https://mutualfundobserver.com/discuss/discussion/58534/wealthtrack-weekly-investment-show/p8
Leading Wall Street economist Nancy Lazar discusses the resilience of the U.S. economy…
The 2018 rollback of the part of Dobb-Frank Act on regulatory examination and stress test contributed to this failure. This supposed to US banks more competitive with other banks in the world. Now we realize that is a mistake. Will any of the execu…
This morning there are fewer CDs (1 year) available this morning at Fidelity and Vanguard. On last Friday, there were many more choices. Stayed with large banks only - Morgan Stanley, UBS and Barclays.
Will wait after March 22th FOMC meeting to s…
Thank you. I need to get subscription to NYT and Washington Post.
Trump lawyer Joe Tacopina Was interviewed by Ari of MSNBC. Tacopina said that Trump will go when he is charged and arrested (implying peacefully). So that he will not be photograph…
The short answer is no according to LizAnn Sonder of Schwab. She gave a summary on the regional bank issue in the context of past bank failures.
https://schwab.com/learn/story/market-snapshot
Always found her to very effective in getting to the …
Heard as low as ONE billion (not sure which currency) was offered by UBS. This Credit Sussie debacle is actually bigger issue on global level of financial contagion. The Swiss government already made billions line of credit available.
++++
Durin…
I believe it is due to both the magnitude and pace of rate hike. It is the most aggressive hike since the 1970’s Volcker days. Right now there is lots of uncertainties of which shoe will drop next after SVB, Credit Sussie, First Republic Bank (oth…
Agree with @Observant1 that 2008 was MUCH worse! Nevertheless, investors need to stay calm and stick to their plan (asset allocation) and not get influenced by the media/news. The worst is panic and make bad choices.
I have been deploying my ca…
Thanks for the update. We pared back on energy sector early this year since we expect high probability of recession this year. Also not convinced enough on China story of reopening to hold on.
@Andy, overnight the treasury yield fell again from last night. Both 4m and 6m are now below 5%.
https://cnbc.com/bonds/
Please see the other posting for the reason:
https://mutualfundobserver.com/discuss/discussion/60810/dow-futures-fall-500-p…
Thank you for sharing. This morning the CPI was reported 6.0% in Feb, not higher. Core CPI excluding volatile fuel and food is lower in Feb. Housing and rent remained high. Some reported old measuring method used is lagging the actual data. With c…
It seems to boil down to similar strategies but with fancy names, managed futures. Certainly they are not “all weather” funds/ETF. Often they have ridiculous high expense ratio too.
@AndyJ said:
Oversight and regulation matters. The 2018 change in the regulatory scheme (as detailed on Marketplace Morning Report today) was to move the bank exemption from oversight up from $5 billion or less valuation to $450 billion or less. N…
Since yesterday CD yield is moving up instead of down as those in T bills. Call-protected 12 months CDs yielding 5.30% are available at Fidelity (expect to be the same at Schwab and other brokerages).
Buy 3 mo, 6 mo and 12 mo treasury bills and hold till maturity as a ladder. Every 3 months you will have cash available. Build a second ladder 6 weeks later in between the first one in order to reduce time for available cash.
Buying at auction (…
@MikeM, buying at auction may get your a tad higher yield than those from secondary market. Monday is messy. We bought 3 and 6 months T last week and 6 months yield 5.2%. Things are changing rapidly since last Friday.
I think your sweep MM should…
UK prime minister announced on last Sunday that there will be NO bailout. There were few banks are interested to inherit the liabilities. Wonder if this is the high bid from an auction?
Not exactly. Our strategy has been conservative this year with large cash position in T bills, CDs and MM. Having gold and some alternatives is good now. IG bonds shot up (yields likely got hit). We are with Fidelity and Vanguard brokerages and th…
I’m wondering if whatever risks one might ascribe to investing in China wouldn't bleed over, at least in part, to Hong Kong and that perhaps a fund like SIVLX shouldn’t be considered quite so China light.
Tough to call at this moment. Appointment…
@larryB, I was referring to why Schwab stock price is being affected considerably on Friday? Wonder if that is related to the Schwab Bank itself but not relating to SVB.
