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My WAG. Get enough of them in a sector and you are no longer betting on particular stocks. Could be closet indexing. Could be a plain old sector bet.
There are probably better explanations.
I think you were right when you quoted Heraclitus.
If he was alive today he might have said no one has stepped in this cow flop before.
However. I find this claim from M* to be . . . fraught:
About 70% of GDP is from businesses that are exempt fr…
So how does a liquidation of an ETF like this work since they don't own any of the shares they are tracking?
From reading the communication posted, it looks like they're going to get totally screwed if no one cares to buy their shares. And why woul…
While the 70's stock market did not drop as much as the Great Depression market, it did creep to an end with Business Week proclaiming the death of equities, before bottoming out at a PE ratio of 6.68 later that year. If you had invested near the pe…
I had a neighbor once tell me that stocks had to go up because everybody's retirement depends on it. I've started to wonder if that is a goal of all these emergency actions taken by the Fed and Congress. They're not backstopping stocks yet, but indi…
How the heck do you put an accurate price on anything if the Fed is just going to step in and buy everything?
Sounds to me like too much money chasing to few (known good) goods.
Another maybe bullish sign... This article from the NYT says it's institutional investors (aka smart money) driving this one while Mom and Pop investors (like me) wait it out.
I have also read that some of the buying has been driven by funds with…
Isn't the calm bond market because of the feds actions of buying everything everyone else doesn't want?
As I understand it, they can't buy junk until Congress passes a law, and the President signs it. So it will probably get more exciting when some …
I was surprised to see the content on a web-site geared to financial advisors. Shouldn't they know this stuff already?
I felt like showing it to my wife. But she has already conceded that there's no good point in paying somebody to tell you about, …
From the link:
“There is an excellent opportunity to gain additional yield if investors are willing to give up liquidity,” Dow says.
Now they tell us. But seriously . . . didn't people generally know this?
I guess not.
The era of investor complacen…
When I rebalanced at the end of last year I still had a 50-55% stake in equities. This is simply one of the funds I chose to hold onto. Given its strategy -- it's a value fund -- I had no expectation it would behave like utilities, staples, infrastr…
I've owned DBLSX and pretty disappointed with its performance over the past month.
Something from Payden, or Baird, would have been more sensible. Looking at our IRA's as a combined pool, it was small flyer in the total bond sleeve.
I have no pla…
Most of that stuff is probably made there. There were reports early on that China was prohibiting exports of things like masks "made by" American companies in Chinese factories.
So maybe American business will take their business someplace else. S…
From the article in the OP:
Some investors expect the Fed and the U.S. Treasury - whose job it is to work together to keep the U.S. economy on a steady footing - to reach further down the ratings ladder to help non-investment grade companies. At pre…
The Navy holds officers to a high standard. It used to be the case that running your ship aground was a career ender, even if the local harbor pilot was making the "suggestions" at the wheel.
And IIRC, all the commanders in the recent string of inc…
They're betting the Fed will buy enough bonds to keep everyone from defaulting. Or maybe the risk of default is over.
I think I'll not follow the crowd on this.
YTD in my IRA: FIPDX +3.47, FNSOX +2.38, TSBRX -.65, DODIX -.91, DBLSX -4.6, and BILDX -7.3.
In my taxable: AZTYX -2.37, VWLUX -3.56, DMBIX -4.03, and VWALX -6.13.
Wife's IRA, which is at a different place than mine: VAIPX +3.36, VFIJX +3.30, VS…
Thanks for the link Mark. Seems to me she has a hold of more of the elephant than some I've read. Maybe that's confirmation bias at work.
I am kind of surprised that she didn't get into Smoot-Hawley and current trade wars.
VDIGX seems to have held up admirably through this excitement.
Grocery stores are hiring lots of people.
I don't think people are interested in cocooning for the rest of their lives. We might have to wait for a vaccine before people start getting …
I go shopping when there are fewer people about. Typically mid-morning after the lines have cleared out, and before any lunch-time surge. I always ask the clerks when the fewest people are in the store. Our local Trader Joes will close the door when…
I am not a trader. And generally I don't buy funds that do a lot of trading. I don't think there are all that many extra-smart traders out there after expenses.
I tend to stay invested in my taxable investments. I plan on leaving that behind, altho…
Somebody once said that if you’re comfortable with everything you own, you’re not diversified.
I'll sleep better tonight. Seems I'm diversified out the wazoo.
;-)
