Very good points. Persuasive … and reassuring for those of us sticking it out. I have 32% of my stock portfolio overseas. But I tilt toward Japan and away from China. I’m just not convinced that the risks of China’s communist government are priced in.
Yes, I’m hearing from a lot of firms including Vanguard that risk/reward in the years ahead will be better with bonds. I touched on that in a post. But I’m still 68% or 69% stocks, down from 72% last year. Currently adding to Vanguard’s bond index fund in my 401k, and I may also trim some more stocks at year end, which is when I re-evaluate these things.
I’m definitely lucky to have done decently versus the indexes the past few years—but I have not really added value. So, yes, all my efforts have not really been worth it. Lol.
Very informative, thanks. Question: Are individual TIPS complicated to evaluate and buy? I’m leaning toward a TIPS fund in my IRA but as an alternative could buy an individual TIPS or a defined maturity TIPS fund. Like many, I suspect, I’m reevaluating my tactics with bonds. Individual Treasurys and CDs held to maturity have served me well since 2022. But if short rates are going to fall … do you lock in yield before the expected September rate cut? Or try to ride price appreciation in a fund? Also, with focus now on economic weakness, I may need to rein in my corporate credit exposure, which has crept up this year.
For sure—they tend to be opposites except during “everything rallies.” The growth leaders seem to be viewed as havens when interest rate worries or recession concerns resurface, and small value often responds well when those fears recede.
Dear Jonathan — Your silence—hopefully not anytime soon—will leave a void among the financial commentariat. Contributing to HumbleDollar has allowed me to reach my highest expression as a writer, including in the chapter you invited me to write for My Money Journey. I have always, always wanted to write for the benefit of investors, who are beset on all sides by conflicted or click-bait advice. You helped show the way. In the 1980s, I used to pore over Vanguard fund annual reports and read Jack Bogle’s letters. And I guess it was the 1990s when I began reading your columns in The Wall Street Journal. I don’t consider personal finance to be about the grubby pursuit of money. As you have made clear in your tremendous body of work, this is about people’s lives and the future of their families. That so many people continue to be misled by bad advice is scandalous. It is a high calling indeed to stand against that tide. Yours has been a life well lived. It would be an honor to meet you someday. Bill Ehart
Comments
So helpful as usual. My New Year’s Resolution: Pay much less attention to my portfolio. Check in, say, once a month.
Post: Sharing Lessons
Link to comment from December 14, 2024
Very good points. Persuasive … and reassuring for those of us sticking it out. I have 32% of my stock portfolio overseas. But I tilt toward Japan and away from China. I’m just not convinced that the risks of China’s communist government are priced in.
Post: Stuck at Home
Link to comment from November 23, 2024
Also, I’m struck by how much reaction this post has gotten already before 5 am. Wow.
Post: On the Clock
Link to comment from August 17, 2024
“Happiness is a choice.” Great advice, which I really need to take to heart. Thanks Jonathan.
Post: On the Clock
Link to comment from August 17, 2024
Yes, I’m hearing from a lot of firms including Vanguard that risk/reward in the years ahead will be better with bonds. I touched on that in a post. But I’m still 68% or 69% stocks, down from 72% last year. Currently adding to Vanguard’s bond index fund in my 401k, and I may also trim some more stocks at year end, which is when I re-evaluate these things.
Post: Foolish summer
Link to comment from August 14, 2024
I’m definitely lucky to have done decently versus the indexes the past few years—but I have not really added value. So, yes, all my efforts have not really been worth it. Lol.
Post: Foolish summer
Link to comment from August 14, 2024
You might not know the after inflation value, but if inflation comes in hot, wouldn’t you do worse in a fund? Maybe it depends on the holding period.
Post: Question of Interest
Link to comment from August 4, 2024
Very informative, thanks. Question: Are individual TIPS complicated to evaluate and buy? I’m leaning toward a TIPS fund in my IRA but as an alternative could buy an individual TIPS or a defined maturity TIPS fund. Like many, I suspect, I’m reevaluating my tactics with bonds. Individual Treasurys and CDs held to maturity have served me well since 2022. But if short rates are going to fall … do you lock in yield before the expected September rate cut? Or try to ride price appreciation in a fund? Also, with focus now on economic weakness, I may need to rein in my corporate credit exposure, which has crept up this year.
Post: Question of Interest
Link to comment from August 4, 2024
For sure—they tend to be opposites except during “everything rallies.” The growth leaders seem to be viewed as havens when interest rate worries or recession concerns resurface, and small value often responds well when those fears recede.
Post: A barbell strategy for stocks
Link to comment from June 27, 2024
Dear Jonathan — Your silence—hopefully not anytime soon—will leave a void among the financial commentariat. Contributing to HumbleDollar has allowed me to reach my highest expression as a writer, including in the chapter you invited me to write for My Money Journey. I have always, always wanted to write for the benefit of investors, who are beset on all sides by conflicted or click-bait advice. You helped show the way. In the 1980s, I used to pore over Vanguard fund annual reports and read Jack Bogle’s letters. And I guess it was the 1990s when I began reading your columns in The Wall Street Journal. I don’t consider personal finance to be about the grubby pursuit of money. As you have made clear in your tremendous body of work, this is about people’s lives and the future of their families. That so many people continue to be misled by bad advice is scandalous. It is a high calling indeed to stand against that tide. Yours has been a life well lived. It would be an honor to meet you someday. Bill Ehart
Post: The C Word
Link to comment from June 15, 2024