iShares MSCI EAFE Index (EFA)

All Comments on EFA

  • commenter
    Pauly B
    May 25 09:14 AM
    Time To Abandon Stocks? [view article]
    Energy will play a key role in all of the worlds markets. As the middle class grows in India, China, and other places energy consumption will only increase. This is now a demand for energy game, unlike we anything we have ever seen. I agree long term investing in equities will produce results, however I dont see it producing like it has in the past. Reply
  • commenter
    frankie
    cooper
    May 25 08:45 AM
    Time To Abandon Stocks? [view article]
    good article.
    EGG - i don't understand your criticism of the article: "one major problem with your article is that in 1979 the stock market had been in a bear market since 1966...today we have been in one for less than a year. There hasn't even been a full calendar down year in this bear market."
    how does that change the fact that the BUSINESSWEEK article (or prediction) was WRONG? perhaps the fact that the "bear market" we have been in (for less than a year), should make the WALL STREET JOURNAL that much MORE cautious about publishing a doom-and-gloom article on its front page....

    cathy is right on about the fact that NO ONE can predict the future. i, for one, am fed up with these pundits (most of whom are financial JOURNALISTS) make these sensational claims. don't they realize that they usually wind up looking rather foolish?     Reply
  • commenter
    Old Bull
    May 25 07:17 AM
    My Website
    Time To Abandon Stocks? [view article]
    Very well said! Headlines today say Buffett is now predicting a "colossal" recession. In fact he's just been saying -- as he has for weeks-- that it simply will be longer than many think. That hasn't stopped him flying to Germany to shop for bargains. Reply
  • commenter
    Egg
    May 25 06:12 AM
    Time To Abandon Stocks? [view article]
    I too like thinking contrarian, but one major problem with your article is that in 1979 the stock market had been in a bear market since 1966...today we have been in one for less than a year. There hasn't even been a full calendar down year in this bear market.

    An old adage I'll never forget is that bear markets don't really end until you have high interest rates and high inflation. We do have inflation (unofficially) but definitely not high interest rates, so I think the real contrarian buying oppurtunity will arise sometime between 2010-2012.     Reply
  • commenter
    Blair
    May 25 03:12 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    I think that the performance history of many of the ETFs mentioned is way too short to make any kind of quantitative assessment as to relative performance comparisons.

    My assessment is to wait another year before making any investment decisions as to ETF selections..     Reply
  • commenter
    David
    Jackson
    May 25 02:14 AM
    My Website
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    Roger, I think you're totally right. There are a lot of portfolios out there containing ETFs that aren't the cheapest or best, because they were first to market. Reply
  • commenter
    Acercher
    May 25 01:06 AM
    Choosing Your Portfolio Risk Tolerance [view article]
    Geoff--Excellent article. It stimulated me to read many of your other articles, and I find myself in accord with your investing philosophy.

    I was hoping you might find it worthwhile to comment or write about an issue that I see coming up in various investment commentaries by others: they seem to use the concepts of beta (correlation to an index like the S&P 500) and standard deviation (a measure of volatility) almost interchangeably. I think it's because almost everybody equates a low standard deviation with low beta, and ultimately with low risk.

    But would you agree that certain asset classes or stocks could exhibit very low beta while at the same time having a very high standard deviation? For example, rare stamps might have almost no correlation with the S&P 500, and thus could have a beta of 0. However, I also assume it's possible that a collection of rare stamps might have a high standard deviation in terms of what it could be sold for in any given year.

    If my understanding of these statistical terms is correct (which is by no means a given), wouldn't that have an effect on optimizing a portfolio? Typically, if the standard deviation of a portfolio was too high for comfort, you might choose to add more bonds or utilities which have a low beta and low standard deviation. But could you also reduce the standard deviation of the portfolio by adding one or two new asset classes, eg., commodities and currencies, which themselves have low beta but very high standard deviations, and thereby increase rather than reduce your expected return?

    Perhaps I'll have to buy Quantext to find out, but could you give a little commentary on this issue for those people who prefer words to numbers? I promise to buy Quantext either way.

     Reply
  • commenter
    Roger
    Nusbaum
    May 24 08:09 PM
    My Website
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    David, The point was not pick this fund because it has done better over the last however many months it was more along the lines of better mousetraps exist than the biggest and often first to market in a space. You want REIT exposure--look under the hood at all (or as many as you can) of them and pick the one you think will be the best. Further if something is near and dear (like water as an example) if you have exposure, ok but when something new comes check it out, maybe its better.

    Bigger macro; think about all the choices available b4 you go in.     Reply
  • commenter
    David
    Jackson
    May 24 06:30 PM
    My Website
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    I just added the link to the NY Times article, which we dropped by accident. (Apologies to Roger and readers.)

    Roger -- great article. I love the idea of suggesting alternative ETFs to those most popularly used. But how valid is selection based mainly on recent past performance?     Reply
  • commenter
    Richard
    Schweitzer
    May 24 11:12 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    Compare the terms (limits on getting out and getting back in) of Vanguard's VEIEX and its ETF VWO. Then look at respective results in markets price trends.

    Long: VWO     Reply
  • commenter
    Argent
    May 24 10:40 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    Boubou, above, says it all! Reply
  • commenter
    Boubou
    May 24 09:35 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    Diversication makes sure of three things;-

    1) Probably gains and losses should cancel out except when the entire market is rising.
    2) Whatever happens you should'nt be wiped out, so that
    3) money managers can carry on leeching you out.     Reply
  • commenter
    rainman
    May 24 05:29 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    forget US market for a while, before consensus reached on inflation. Reply
  • commenter
    rainman
    May 24 05:28 AM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    My simple and easy recommendations will be:
    a FXI, FXP mixed to bet on China domestic demand to be triggered after the earth quake with a few individual picks such as CEO, and CHA.     Reply
  • commenter
    J.
    Fredrickson
    May 23 09:49 PM
    Complex Simplicity: A Better Portfolio of ETFs [view article]
    I often find that most people( i.e. those not involved in the financial world) construct portfolios similar to the one above. The thought process I will assume goes something like this, "if I have exposure to just about everything I will not be hurt bad if I am wrong,and have a little skin in the game if an area gets hot, i.e. I will be diversified." It reminds me of putting a little money on every number on the roulette table knowing that you will at least win something.

    Most schools (mine included) teach us that diversification is the answer to doing well in the market and that the markets are efficient. I have read the research/books on the topic as well as experienced quite a few years trading and think that it cannot be further from the truth. The reason behind the decision to teach diversification in our institutions has to do with being able to get theories published and needing certain aspects of the research to be constant. Enter efficient market, duh, duh, duh, problem solved, thanks Malkiel, high five (slap!).

    But I feel that this strategy leads to mediocre returns. Of course the allocation will very based on many factors, but I feel that it is important for managers and individuals to understand what is happening or going to happen and set-up a strategy to take advantage of the opportunities out there. These do not really provide that incentive. I think that these types of portfolios are lazy, bloated and often times full of "evergreen income" for those lucky managers that get the naive client.     Reply
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