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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
Here is the background on Nicholas Borst of Seafarer, who @BenWP mentioned.
Nicholas joined Seafarer Capital Partners in 2018. He is Vice President and Director of China Research. Prior to joining Seafarer, Nicholas was a senior analyst at the Fe…
@crash, brokered CDs have many advantages over those offered at local banks. You get much better yields, many choices on different banks and duration. Or you can create your own ladder. But this May depends on your brokerages. Even Vanguard is pr…
If inflation stays elevated and above the CD yield, you are still losing unless you own IBond.
Still it is nowhere near as bad when the bond index fund this year, -16% YTD. You are indeed doing very well to stay positive this year while many of us …
Were there many Chinese stocks delisted from major U.S. stock exchanges for failing to follow the GARP and auditing requirements ? I would not touch ECNS, perhaps only through experienced managers.
Agree. Time better spend to find pockets of opportunities in this challenging environment. Can’t imagine going back to using brokers for buy and sell orders.
Just pick up some 2yr CD with Morgan Stanley yielding 4.7%. CDs will likely get over 5% after Nov and Dec rate hike. If CPI stays above the historical average of 3.5%, stock and bond return will struggle, 2-3% total?
Seafarer’s Prevailing Winds articles on China and other part of emerging market are very informative. They are one of the reason that I am very light on EM exposure even though it suppose to represent future growth.
Thanks for the update. CDs are now yielding a tad higher than treasuries with the same duration. 4.7% for 2 year CD is very good. I expect after Dec’s rate hike, it will go over 5% for 2 year CDs. You can buy more then.
BY the way, some said th…
My opinion is that 80% stock allocation for someone who is nearly retired seems a bit too aggressive. Holding TIPs this year is mixed as @devesh pointed out in his recent commentary. Not sure Clements’s strategy fits well in current environment. Tar…
Who know what is leading this week’s short rally. Many buy the dips have not panned out so well this year. The trend of missed earnings, lower revenues, and cost cutting does not bode well going forward for the market. For now, I am focusing being …
Today Google and Microsofts’ earnings missed their expectation. Meta announced lower revenue. Next two rounds of rate hikes would put even more pressure particularly on tech stocks. Housing market is not doing well. So it is hard to imagine the m…
For new issues (CDs and treasures), Fidelity is very easy to use. Vanguard works well using Google Chrome browser but not Safari (very strange).
Remember that treasuries are easy to trade on secondary market. Brokered CDs are not as liquid.
Only the antibodies created from your own immune system can kill COVID viruses. Omicron specific vaccines are designed to recognize the spike protein‘s DNA sequences in order to create that specific antibody. The T-cells can do the same but the ex…
@catch22, to be precise Paxlovid is a anti-viral medication (similar to those anti-HIV medication, often referred to as cocktail = several drugs taken simultaneously). This one was found to be more effective (70% effective) against COVID than severa…
There is still over 400 death daily due to COVID and this is far from over. That is a real good bill that President Biden signed including the booster shots.
Getting anti-viral drug treatment early on makes a big difference to prevent further spr…
Most brokered CDs pay at maturities. But some pays monthly or semiannually.
Also you need to compare yields too to make sure you are comparing apples to apples.
I saw several articles mentioned exactly what @sma3 said above. Brokered CDs are FD…
Our family has been vegetarian for some time. There are more good choices today than the past. Impossible Burger adds heme protein so that it tastes like real meat. Had it at a friend’s house and it tasted quite good. Added condiments brings out…
To add to @yogibearbull’s comment above,
For I Bonds, the September report was the last of a six-month series that will set the I Bond’s new annualized variable rate, which will go into effect for I Bonds purchased from November 2022 to April 2023…
@yogibb, hope you recover quickly. That remind me to get the bivalent booster shot.
I have friends who were in your situation and they recovered fully in a week or so. Make sure you take the 5 days dosage as instructed. Best wishes.
Great minds think alike. I have a healthy allocation of cash to deploy.
For sure new issues only. CDs are not as liquid to trade on secondary market. Thus, best to avoid them.
5 year CD with 6% yield reminds me of the 80’s. They do looks attractive given my bonds are not doing so well this year.
Think we will be in recession by then. Question is what the inflation will be like at that time frame?
Right now 12 month CD is near the “sweet spot” on the yield curve and it flattens out beyond that. 2 year CD paying 4.8% is too long for me. I prefer buying several 1-yr CDs every 1-2 months apart so to build a staggered ladder. That would ensure …
Xi is reining in control on private sector now that he consolidated power after their election. Watch out. Alibaba lost 14% this morning. China represents over 33% of VWO.
Andrew Foster of Seafarer funds asked once, is China investable?
Rishi Sunak is heading to be the next PM. Question is what would he do differently from Truss’s policy ?
https://reuters.com/world/uk/what-is-rishi-sunaks-solution-britains-problems-2022-10-24/
England needs to hold a general election. How can the country had 5 prime ministers in the last 6 years ? Lewis B is spotted on Britain's resurgent nationalism .
https://newyorker.com/news/our-columnists/after-liz-trusss-resignation-britain-urg…
Elon Musk plans to cut 75% of Twitter staff if he takes over company. Is it good for Twitter stock, users, and their investors? And that is a clown show.
https://theguardian.com/technology/2022/oct/20/elon-musk-twitter-staff-layoff-takeover
It would be premature to get excited when November and December rate hikes are coming. 75 bps hike is highly likely for November and 50 bps hike is predicted for December. 10-year treasury is now over 4%, the highest level for the year.
I agree that holding cash or short term bonds would be a lot better, but that is hindsight. Investment grade bonds are down 14% YTD and there are two more rounds of rate hikes to go this year. Until the Fed starting to reverse the course and cut ra…
Credit card business is a very profitable business with little downside risk. That is why Visa and Mastercard stocks are commonly held in growth mutual funds.
Think the transaction fees have gone up from 3% (Visa and Mastercard). Now the credit…
That is the point. Without thorough auditing on Nikola’s book, how can investors trust the stock? Otherwise, it is nothing more like smoke and screen.
BTW, this case shares similarities to that of Theranos, except it is privately held.
Remember Arthur Andersen who was the auditing firm for Enron.
https://hg.org/legal-articles/the-fallout-of-arthur-andersen-and-enron-on-the-legal-landscape-of-american-accounting-31277
Will Ernst & Young face discipline from SEC?
The market carnage is far from done. So there will be better entry points down the road. I am surprise that analog semiconductors are still in tight supply today. The inventory should has been built up since many fabs were closed during the pandemi…
