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Derek Heckman

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  • Treasuries In Your Portfolio: Short Versus Long Duration Debate [View article]
    AND, as several others have said, long-term Treasuries are a great hedge against a stock downturn. I too hold long Treasuries in my portfolio, and I sleep "better" at night because of it, not worse.
    May 10 03:09 PM | Likes Like |Link to Comment
  • Will The Real 60/40 Please Stand Up? [View article]
    Great article, Daniel! Though I agree with some of the other comments that 40/60 stock & bonds is a little too heavily tilted towards bonds. Personally, I put a larger percentage in stocks and spread that portion out amongst developed, emerging, and US markets, including several other non- or low-correlated asset classes. However, your analysis of the risk inherent in specific assets by themselves and how changing your asset allocations around affects overall risk was excellent! In the end, most of the battle (for myself, anyways) is keeping a good mix of allocations that earns me a majority of the stock market returns when they occur but can be offset with gains in bonds and other asset classes when stocks are in the basement.
    Sep 10 08:16 PM | 1 Like Like |Link to Comment
  • Diversify With A Global Real Estate ETF [View article]
    Thank you for backing up your 1st comment with an actual opinion, moat. Telling the author his article is worthless, end of post, without a good reason isn't respectable or helpful. I thought Casey wrote a great article, and now that another alternative (VNQI) has been offered it gives me something else to research as I'm looking to diversify internationally myself from VNQ.
    Aug 26 09:07 PM | Likes Like |Link to Comment
  • A Salute To A Trailblazing ETF: IQ Hedge Multi-Strategy Tracker [View article]
    Great article, Alex! I just stopped by while doing research on some of the market-neutral ETFs out there. You're right, they're aren't many, but QAI seems to be one of the better ones. I think you're right on in the assessment that this fund offers lower volatility and is not correlated with the market at large. Personally, I think this is a great thing; I'd rather spread out my bets among several different asset classes.
    Aug 23 04:03 AM | Likes Like |Link to Comment
  • The Rally In Treasuries Hasn't Ended Yet [View article]
    Great article, Daniel! I dumped my TLT several weeks ago and share your sentiment that long Treasuries are hanging over the cliff about to fall off. Are you employing any kind of trading strategy with Treasuries or just staying away entirely?
    Jul 20 01:52 PM | 1 Like Like |Link to Comment
  • All Emerging Markets ETF Portfolio [View article]
    Great article, Brad! I'm a holder of $DEM myself and previously held my emerging market funds in VWO. While Vanguard's fund is lower cost, I agree with you that most your return is going to come from dividends.
    Jun 29 01:06 AM | Likes Like |Link to Comment
  • Fed Continues Operation Twist [View article]
    Thanks for the word, Tim; I hadn't yet heard about this. TLT was half of the bond component of my portfolio but I sold it two weeks ago, originally in anticipation of Twist ending this month. It seemed like a good time to take the 30%+ gain, considering that interest rates are eventually heading back upwards. My alternative was to roll those funds into BND, which will still fall eventually but not quite as drastically as TLT due its large run-up and the fact that BND has many types of bonds, not just long Treasuries. What are you thoughts on this?
    Jun 21 02:17 AM | Likes Like |Link to Comment
  • What Treasuries, Gold And The S&P 500 Are Saying: Houston, We Have A Problem [View article]
    Totally in agreement with you! My biggest concern at the moment is some TLT I'm holding that's now at a 34% gain. If I had to bet, I'd say that it's going to drop huge versus gaining even more. A lot of people on here have criticized calling long Treasuries a bubble but what else do you call it? Historically low yields, buying into safety... they say that if it looks like a zebra, it probably is.
    Also, thanks for the background on the correlation of these 3 assets. DBC and VTI are my corollaries for commodities and the US market, respectively; it was interesting to get your take on their action over the next several months.
    Jun 6 02:12 AM | Likes Like |Link to Comment
  • Sell Bond Index ETFs, Buy Junk Bonds Instead [View article]
    I'll check back for the rest of the study as well, Nik. I'm just starting to move out of TLT (which is quite overvalued) over into BND. Although I agree with you, at some point BND is going to drop when rates rise... I'm just hoping it doesn't crater as much as TLT is going to.
    Mar 5 12:16 AM | Likes Like |Link to Comment
  • What To Do With Overvalued Treasuries [View article]
    Mekats: The purchase several weeks ago was simply for rebalancing. It was a small amount and I still have to trade my system, even though I think TLT will stay pretty high for awhile. And you're right, it doesn't make much sense. This was only done because other components of the portfolio were rising and TLT was underbalanced that week. Actually right now I'm working on another rebalancing system to correct this very problem. Do you have any good ideas? My only idea so far is something that is rebalanced based not on the portfolio's total values and each ETF's related weight, but on the gain/loss for each ETF itself. But that is still a work in progress...
    Feb 28 08:15 PM | Likes Like |Link to Comment
  • What To Do With Overvalued Treasuries [View article]
    Yes Jon, I think in the short term it will. I'm just looking out for the eventual decline when higher interest rates pull the bond prices back down.
    Feb 28 08:08 PM | Likes Like |Link to Comment
  • Poor Man's Program Trading After Two Months [View article]
    Great article! Jim Cramer just recommended a similar trading strategy in this article from 10/05/2011. He suggests using a stock as a proxy for the market, then employs a strategy similar to yours. Personally, I have paired TLT & VTI in my portfolio. These two ETFs have offered consistent, excellent trading opportunities to profit from market volatility. As several people note, this works well in our current market; you just have to monitor your investments carefully and change your strategy when the trend reverses.

    Disclosure: I have positions in both TLT and VTI and may buy or sell them in the next 72 hours to rebalance.
    Oct 8 03:18 PM | Likes Like |Link to Comment
  • Swensen 6 Asset Class Lazy Retirement Portfolio Review [View article]
    I believe that LQD is an investment-grade corporate bond ETF per the iShares website. If you're looking for long-term US Treasuries you'll probably want to go with a long-term government bond ETF. VTI already gives you US equity exposure to the entire Wilshire 5000 so adding corporate bonds is probably overdiversifying your domestic equity target.

    Mar 15 01:37 AM | Likes Like |Link to Comment