My personal portfolio

Today I finally wanted to get to discussing my investment portfolio and some of the reasons behind my allocation decisions. I think its better to see actual ideas being implemented rather than just talk about generalities. Lets get right to it then. You can see the bulk of my portfolio on how it is performing at tickerspy here. In general,…

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On-line financial education

In my post yesterday I mentioned the important need to get educated on financial matters. I forgot to mention one of my favorite resources for on-line for educational content, the Khan Academy. If you have not heard of the Khan Academy I highly recommend that you check the website out. Here is their brief story; My uncle’s family visited me…

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The gov’t is waging war on your savings

I wanted to talk about saving money tonight. Specifically, how the government is waging a war on your ability to save money and build wealth. Most people first start to save by building up short term savings, a rainy day fund, emergency fund, etc… Currently, the gov’t is making this harder and harder by keeping short term interest rates too…

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Update on MLP valuation: frothier but not overvalued yet

I an earlier post I talked about MLP valuation and considered if the sector was overvalued. My conclusion was that based on avg historical yield the sector seemed pricey but based on my preferred metric, the yield spread to the 10yr note, the sector was not over valued. Today I thought I would update the data, considering the recent market…

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Retirement and risk

Modern finance theory teaches that market risk is measured by the volatility of asset prices. Just  calculate the standard deviation of asset returns and there you have it – risk. But risk of what? Volatility measures risk as how much your portfolio varies over time (also to the upside remember). That is ONE way to measure risk but certainly not…

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Yield on cost: a critical dividend metric

Today I wanted to cover one of the most critical dividend stock metrics, yield on cost (YOC for short). Rising YOC is one of the great benefits of owning dividend stocks, in particular one with good dividend growth. YOC is simply the current dividend rate divided by the price you paid for the stock. For example, if you bought a…

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Bonds may outperform stocks in the next 10 yrs

I figure that after my last post on stock market returns for the next 10 years, I’ll try and do something similar for bonds. After all, these are the two most important assets classes that make up retiree portfolios, often in the much talked about 60%/40% stock, bond allocation. Without taking a crack at this you can’t forecast portfolio returns…

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SP500 to return 5% per year in next decade

So says John Hussman. First, if you don’t know who Hussman is, I recommend that you get to know him. Hussman is a mutual fund manager who runs the Hussman Funds. He is a value oriented manager but also focuses heavily on managing risk, i.e capital preservation in bad market environments. But Hussman is also an economist, an insightful one…

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Some income investors have gone plain nuts!

All markets experience periods of excesses. It looks to me as if we’re getting to one of these times with the fixed income markets. The news item that led me to this post was about a foreign bond – ‘Mexico floats century bond in a hungry market’. An excerpt from the story; MEXICO CITY, Oct 5 (Reuters) – Mexico launched…

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High investment fees will ruin your retirement

High investment fees hurt. We should all try to minimize them. Conventional wisdom, right? In one way you would think so with the rise of firms like Vanguard, discount brokers, ETFs, etc… On the other hand, there has been the massive rise of hedge funds, derivatives, and other esoteric products that have high fees. Given how much fees can impact…

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