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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
@BenWP, I am thinking along the same line as you are as I re-read the article again. We are chasing the unicorn! For awhile I was thinking that a good asset allocation would dampen the ups and downs of the market, at least over a full market cycle…
@WABAC, thanks for sharing your search. Thanks to Charles, the search capabilities of MFO has grown considerably. I need to refine my search again over X-mas holidays. These elusive managers are tough to spot. .
The Bull-Bear spread is -11.3% as of 11/23/22, so it is improving from Sept 22, 2022 (-43.1%) as you noted. Still learning on how to use this contrarian indicator.
Another actively managed and leveraged bond ETF, PFIX that tracks TBT,
https://stockcharts.com/freecharts/perf.php?TBT,TMF,PFIX
It is quite volatile. So just watching for now.
Yes, you have pinpointed the important variables to consider as the interest rate situation is fluid. I am getting yields well above money market funds (in CDs and treasury ladders). Will continue to add as Fed hike rates in order to capture higher …
Many corporations don’t like the higher corporate tax President Biden proposed. Enjoyed too much from the Trump’s tax cut. It is not surprising that the Koch brothers support these election deniers, while the other corporations are disappointing. …
Thanks. Your explanation on liquidity makes perfect sense.
Is there good reasons to go longer duration treasury beyond 52 weeks, in light of the current yield curve?
VG website is more clunky for buying individual bonds than that of Fidelity. Following @yogibb’s auction schedule and putting in my order a day or two ahead of the closing dates. At auction one get good prices just as the professional traders, wher…
assumes par at maturity (ignoring default risks), so be cautious.
Exactly! There is also the sovereignty risk. Case in point that Russian bonds became worthless as they were mark-to-market and underwent free fall early this year. Those EM bond f…
@Ben,that what we have done for many years until 2020 pandemic. I understand that paper filing requires an IRS agent to enter your data manually and they are prone to human error. Also you get your refund longer to complete. Some takes over 6 mon…
Try this for the text:
https://fidelity.com/news/article/top-news/202211230959RTRSNEWSCOMBINED_KBN2SD11Z-OUSBS_1?print=true
Be sure that you consider the total return of emerging market debts, not just the yields alone. The EM bond prices get crus…
Tracking rent growth is an interesting tool to track inflation since it tends to have less month-to-month fluctuation as many renters sign year-long leases. Additionally, housing expense (rent/mortgage+tax) constitutes one of the largest expenditure…
In light of the software makers fail to protect the customer’s private information, what will you do next year when filing your tax return in order to protect your privacy?
That stinks! There must be financial incentive for these software companies to sell your personal information. Just like Amazon and other online stores.
I believe the online version is more susceptible to have all your personal information stored…
As investors in this sector, one should rely on money managers who are highly trained in that sector. Many rich folks got conned by Holmes and her team.
For example, TRP Health Science fund is managed by someone who is trained as a physician.
The…
White collar crimes tend to get away with light sentences. Each convicted count carries a maximum of 20 years sentence, and she was convicted on four out of 12 counts. She is going to appeal for lighter sentences than the 11 years she received. Her…
It is their responsibilities and due diligence to review the testing before they join the board. The old saying among Silicon Valley’s start-ups is “fake it until you make it” rings so true in this case. If these people are technically savvy people…
Vanguard is offering several money market funds with very competitive yields:
VG federal money market, VMFXX, 3.61% 7 day SEC yield
VG treasury money market, VMSXX, 3.49%
VG Cash reserve federal money market, VMRXX, 3.64%
All require a minimum $3,…
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.
