Of course retreats damage returns. But then advances help them. As a fan of history you should know that the market always rebounds.
Of course retreats damage returns. But then advances help them. As a fan of history you should know that the market always rebounds.
POTO,
I agree and generally buy and hold makes sense for most people, with a couple of points: don't chase rising markets, and don't panic in falling markets. Those that do not have the risk tolerance or time horizon by definition must be more tactical.
Igy
Agree 100% with your first sentence. I am unaware of the definition you reference in the second.
agip,
But if Grandma can't buy a CD for more than 0.50% some broker convinces her a high yield bond fund is a reasonable altenative. The demand for bonds is driven by a search for yield. And but a few know years of interest can be lost in principal as they have in the 2015 junk bond market.
I have a hard time agreeing that interest rates are not manipulated since the Fed balance sheet has increased by $3 trillion since 2008. Of course onebargument is that the Fed has thru its policies has inflated bond markets, which is arguably possible. My comment would be, that whether Fed activities are directed up or down with regard to interest rates its still a manipulation. In my view the danger is in the brew the Fed has concocted. Is it Viagara or medical castration?
Igy
POTO,
Second sentence: 1) If a person can't hande market volatility then the portfolio should reflect a lower risk profile. 2) If a person is near a point where they will take distributions from a portfolio they should reduce assets at risk in accordance with the rate of withdrawal.
Igy
I was curious about the "definition" you referenced. I assume you pulled that out of your butt.
and Happy Thanksgiving to you....
Thanks, Igy. Same to you and yours.
POTO,
Thanks. Here is an interview with Mary Jo White of the SEC with some interesting discussion of Non-GAAP versus GAAP earnings.
http://www.wsj.com/articles/mary-jo-white-explains-the-new-sec-rules-1448302777
Igy
Ghost of Igloi wrote:
I have a hard time agreeing that interest rates are not manipulated since the Fed balance sheet has increased by $3 trillion since 2008.
Igy
this is a good point - I don't know if $3 trillion is the right #, but it is a fact that they bought and hold an amazing amount of bonds. It probably does influence the market to some degree...but new bonds are sent out into the world - the Fed has stopped buying bonds and will soon start selling them as part of open market ops.
Ach, money is so theoretical.
agip,
From the Federal Reserve website: Federal Reserve Assets on balance sheet 8/8/2007 $869 billion, on 11/18/2015 $4.486 Trillion.
Have a good Thanksgiving. My wife is a good cook so I need to be careful. As a younger man I could go out for a long run and then gorge myself. Oh the days.
Igy
Ghost of Igloi wrote:
agip,
Have a good Thanksgiving. My wife is a good cook so I need to be careful. As a younger man I could go out for a long run and then gorge myself. Oh the days.
Igy
Happy Thanksgiving, amico. I hope the season brings peace and love to you and your family.
lol I'm set to work out tomorrow morning at 7am. Yeah!
Markets continue to edge upward, as I guessed they would. I still believe the trend will continue after thanksgiving.
See you all on the other side.
Maserati,
I will pound out some intervals on a treadmill this afternoon at the YMCA. I would hit it Thursday morning if it was open, probably opt for a walk instead. At my vintage the treadmill is more forgiving on the joints.
It will be interesting to see how Black Friday and Cyber Monday sales go. I already took care of the wife's Christmas gift, and she takes care of our two adult kids, so I won't be fighting any crowds this weekend or future weekends this year.
Happy Thanksgiving.
Igy
Ok, so "sell". Why was that so hard?
Advice,
No, I wrote: "I have an opinion on stock and bond market valuations, but that view is not a buy or sell stock and bond indicator."
Read more:
http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=382#ixzz3sWoag863
Perhaps you should get your vision checked. And if you still don't understand "learn yourself up" on investments.
Igy
Ghost of Igloi wrote:
On a historical basis stocks and bonds are at extreme valuation levels, which argues for higher than normal levels of cash, short term bonds, and alternative investments.
That doesn't say sell?
"a proper answer would be it depends on your age, risk tolerance, time horizon, etc."
Read more:
http://www.letsrun.com/forum/flat_read.php?thread=5369837&page=382#ixzz3sWudcqPU
Ghost of Igloi wrote:
Big Dog,
Advice to any investor would be driven by personal risk preferences and time horizon. From a generally point of view, lower exposure to equities, lower exposure to low quality bonds, neutral alternative investments, neutral high quality intermediate bonds, higher allocation to high quality short term bonds and cash. In summary, a shift towards capital preservation and a reduction of risk for both stocks and bonds.
Igy
aka sell
Forever,
Don't twist my words. I'm not running for political office. Lower exposure is not a recommendation to sell stocks. I also note how you conveniently left out lower exposure to bonds.
The internet is also a place that is inhabited by the rude and uncultured.
Igy