How to Invest Pt.2

[John Galt]

The only guy I can stand to listen to for extended
periods is Rush Limbaugh. Of course, he is way
left of me politically, but still.................When I first
discovered him I was immediately captivated. Now,
I even switch him off from time to time. Anyway, he
has gone through a very tough few years (lost his hearing, his ESPN job, went into rehab, the
criminal investigations, and now the divorce). Man,
that's a lot to deal with even if you do have a bazillion
dollars.

John Galt

 

[cute fuzzy bunny]

I think dennis miller has it worse.

Had his own hbo show, monday night football, and a blossoming movie career.

Then all at once it was gone.

Now he has to do a show with a monkey, and his breath smells curiously like george bush's underpants.

 

[db]

I think he should just invest it all in dryer sheets and keep working until he runs out... :

When I started reading these boards, I wondered about dryer sheets, imagining that it might refer to less sweating at night from financial worry; now I think it may refer to sheets put into a dryer to soften clothes. But, in truth, I remain confused about dryer sheets.

db

 

[John Galt]

Hey db, wait until you see our official flag (I supplied the
motto). It is truly a thing of beauty and constructed
entirely from used dryer sheets. I use it as the
desktop on my computer (I'm not making this stuff up).

John Galt

 

[unclemick]

db

Someone way back in our 'old and misty past threads' mentioned reusing dryer sheets as a means of cutting expenses/saving money, acting frugile - and boy oh boy - did we take off from there.

 

[bongo2]

"The rationale is that performance for corporate has historically been better without any increase in volatility."

Wabmester, do you know anywhere online that I can find a study or something showing this? When I look at Vanguard's 10 year history they are virtually identical, with corporate lagging slightly.

 

[cute fuzzy bunny]

Hmm...weird. I know we looked at both short term funds and the data showed the short term corp with a nominal edge.

Looking at the data now, the 1-3-5-10 year data favors the regular short term bond fund.

I wonder if there was some restatement?

At least the short term corp has shorter bonds in it than the blend fund. Good in a rate rising environment.

Edit: I did a search on this and the only things I can see are Ted saying it was better (nobody challenged him on it) and bernstein uses it in his asset allocations.

For the "since inception" figures, corporate has an edge. For the last decade, the blend fund has somewhat better returns and a .01% lower expense rate.

I'd still keep the short term corporate now as the duration is lower (1.9 vs 2.5 years).

Just goes to show you, well accepted common wisdom sometimes isnt any of those.

 

[charlie]

Vanguard's Short Term Corporate has been an
outstanding fund since its inception in 1982. I
think its like a pair of old shoes to us oldtimers.
We just feel comfortable with it. I don't see
anything wrong with the Short Term Bond Index,
However, Like TH, I prefer the shorter duration.

Now that Short Term Corporate has become
Short Term Investment Grade, it can hold gov.
bonds, etc. I suspect the slim difference between
the funds will vanish into the twilight.

Cheers,

Charlie