Emerging Market Bonds Not Worth The Risk; Watch The Spreads [View article]
Sorry Larry, I have to say Gogu's arguments are more compelling here. All the risks you mention are a two-way street as he notes. The best way to diversify is to hold as many non-correlated asset classes as possible. Otherwise you are forced to make market calls. I assume the market is more or less able to sort pricing out and that the chances of successfully uncovering mispricing across an entire asset class are as likely to be wrong as right (your basic EMH stuff). Therefore, I prefer to remain asset class agnostic, perhaps just readjusting my target allocations as my risk profile changes. Short of acquiring a crystal ball, I am leaving my position in ELD at roughly 4%. I hold corporates (inv. grade and junk), Treasuries and TIPS too via ETFs and munis via both ETFs and a specific CEF which makes sense. Everything else is just 'noise'
James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
Gold was down 70% from 1981 to 2004 - while price inflation averaged 4% a year. So if you think gold is some sort of panacea you're mistaken. Gold can be the right play in the right circumstances. but to go all in with it is no 'smarter' than going all in with any asset class. As always, diversification reigns supreme.
Less Is More: Why I Prefer Low Yield Stocks [View article]
There was no Philip Morris at year-end 2007 - it was part of Altria until March of 2008 when it was spun off into its own stock. I believe the chart of Altria is adjusted for the spin off or some other event - I distinctly remember shares in the $70-$80 range at that time. The numbers in that chart are for 12/31/2007.
Before calling out others for their lack of fact checking, please make sure you are reading correctly.
A Deeper Look At ETF Liquidity: The Case Of PHO Vs. FIW [View article]
For those interested, I spoke with Mark last year about ISE's indexing philosophy which should give some insight into why FIW has performed as well as it has vs. the competition: http://seekingalpha.co...
'Mistakes Even Smart Investors Make And How To Avoid Them': Larry Swedroe And The Zen Of Passive Investing [View article]
For those interested, here is a link to the 'Larry Portfolio' NY Times piece Larry references above: http://nyti.ms/tJA3T5 It's well worth the read and the Morningstar spreadsheet linked to there of 50 of "the smallest and most value-oriented mutual funds" is a very valuable resource as well.
U.S. Money Supply Soars To All-Time Highs, Shows Inflation Trade Is Still On [View article]
'One period'? It was 23 years! And before August 1971 when Bretton Woods was in effect, Gold was directly tied to the dollar so its value was essentially set by the govt. To me assuming gold will protect against inflation is nothing more than an act of faith with no data to back it up (quite to the contrary actually).
In terms of inflation, don't confuse monetary supply with price inflation. Price inflation, which TIPS are tied to, is what actually affects us consumers on a daily basis.
U.S. Money Supply Soars To All-Time Highs, Shows Inflation Trade Is Still On [View article]
Gold doesn't perform well in high inflationary environments. It's a historical fact. As an example, see 1981-2003. Inflation averaged 4% a year over that period, yet spot gold was down 70% from high to low. If you're worried about inflation, but TIPS.
Levered Municipal Closed End Funds: A Cautionary Tale [View article]
Thanks James - very helpful. I have it as roughly 10% of their non-tax deferred account with the other 10% I have allocated to Munis in a couple of nationally diversified Muni ETFs.
Calculating A Proper Valuation For Silver Wheaton [View article]
We have corrected the title and author's conclusion to better reflect his research from earlier in the piece. We apologize for the delay in making these changes - and for allowing this piece to go up in its earlier form to start with.
Emerging Market Bonds Not Worth The Risk; Watch The Spreads [View article]
Emerging Market Bonds Not Worth The Risk; Watch The Spreads [View article]
iShares Plans To Add High Yield ETFs, Global X Files For 'Super Income' Funds [View article]
James Kostohryz Positions For 2012: 100% Cash The Only Way To Play This Market [View article]
The Problem With Almost Every ETF Investment [View article]
Less Is More: Why I Prefer Low Yield Stocks [View article]
Before calling out others for their lack of fact checking, please make sure you are reading correctly.
Vanguard's Forex-Hedged Foreign Bond ETFs [View article]
A Deeper Look At ETF Liquidity: The Case Of PHO Vs. FIW [View article]
Investing For The Long Term: Dividend Growth Stocks Or S&P 500? [View article]
Looks like investors will need to wait until 2013 but I imagine once Schwab rolls this out, it will create pressure for others to follow suit.
Managing Return Expectations For 12 Key Bond And Stock Asset Categories [View article]
'Mistakes Even Smart Investors Make And How To Avoid Them': Larry Swedroe And The Zen Of Passive Investing [View article]
U.S. Money Supply Soars To All-Time Highs, Shows Inflation Trade Is Still On [View article]
In terms of inflation, don't confuse monetary supply with price inflation. Price inflation, which TIPS are tied to, is what actually affects us consumers on a daily basis.
U.S. Money Supply Soars To All-Time Highs, Shows Inflation Trade Is Still On [View article]
Levered Municipal Closed End Funds: A Cautionary Tale [View article]
Calculating A Proper Valuation For Silver Wheaton [View article]