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03-23-2006, 09:59 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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Why Bother With Stocks?
__________________
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Re: Why Bother With Stocks?
03-23-2006, 10:14 AM
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#2
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 569
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Re: Why Bother With Stocks?
Thanks, interesting, I would read this as a sure sign of a merket top.
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Re: Why Bother With Stocks?
03-23-2006, 11:05 AM
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#3
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 784
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Re: Why Bother With Stocks?
You would read what as a sure sign of a market top?
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Re: Why Bother With Stocks?
03-23-2006, 02:34 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Why Bother With Stocks?
It might be time for me to tie an onion to my belt again.
Dont make me do it.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Why Bother With Stocks?
03-23-2006, 03:13 PM
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#5
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Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
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Re: Why Bother With Stocks?
I thought this thread was "Why Bother with Socks"? and was going to go on a rant and rave about how Greg refuses to wear socks. Even in the dead of winter.
__________________
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No more lawyer stuff, no more political stuff, so no more CYA
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Re: Why Bother With Stocks?
03-23-2006, 03:58 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,005
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Re: Why Bother With Stocks?
Quote:
Originally Posted by Martha
I thought this thread was "Why Bother with Socks"? and was going to go on a rant and rave about how Greg refuses to wear socks. Even in the dead of winter.
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Why does this bother you so much, Martha? Does looking at his bare feet make you cold?
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Re: Why Bother With Stocks?
03-23-2006, 04:14 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Re: Why Bother With Stocks?
The women of the household used to get pissed when I took my socks off and let the dog lick the grotty parts between the toes.
Bye the bye - VG Asset Allocation fund - one of my bellweathers is still showing 100% stocks versus bonds and cash.
I'm going the opposite direction somewhat - selling some and building cash.
I'm usually wrong - based on my track record since 1966.
heh heh heh - don't say I didn't I didn't warn ya!
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Re: Why Bother With Stocks?
03-23-2006, 04:45 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,346
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Re: Why Bother With Stocks?
Quote:
Originally Posted by unclemick2
Bye the bye - VG Asset Allocation fund - one of my bellweathers is still showing 100% stocks versus bonds and cash.
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unclemick2, my Roth is in the VG AA fund(VAAPX). The reason I like them is whenever I decide to change my % of bonds/FI VS stocks, I look over at the VG AA fund and they have already made the change I am contemplating. The fact that I think right now I ought to have a high % equities and the AA fund is almost 100% equities is a "reality check" for me. Now all this could mean is VG & I will be making the same mistake. But somehow I feel better that the fund manager and I see things the same way.
__________________
T.S. Eliot:
Old men ought to be explorers
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Re: Why Bother With Stocks?
03-23-2006, 04:55 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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Re: Why Bother With Stocks?
Quote:
But somehow I feel better that the fund manager and I see things the same way.
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if I recall correctly the VAAPX fund uses a dividend discount model and prevailing interest rates to set the allocation of stocks/bonds/cash. Therefore all the high stock allocation tells you is that interest rates are low relative to dividends. But you knew that already...
The manager, I thought, didn't have alot of discretion to change the mix based on his hunch(es).
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Re: Why Bother With Stocks?
03-24-2006, 02:37 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,713
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Re: Why Bother With Stocks?
Quote:
The women of the household used to get pissed when I took my socks off and let the dog lick the grotty parts between the toes.
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I encourage the dog to do that to my DH! It's a win-win situation, far as I'm concerned.
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Re: Why Bother With Stocks?
03-24-2006, 09:55 PM
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#11
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Recycles dryer sheets
Join Date: Jun 2005
Posts: 213
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Re: Why Bother With Stocks?
On moringstar's CEF board, some of the guys have replaced their stocks with CEF income. They can get stuff that will produce somewhere between 7-10% by buying at a discount. If you use a SWR of 4% with inflation rate of 3%, CEFs could be a good idea. Don't know about the risk they are taking on.
Also, my dog's tongue spends a good amount of time between his legs. I don't know I would call anything he licked clean.
Mike
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Re: Why Bother With Stocks?
03-25-2006, 06:50 AM
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#12
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Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
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Re: Why Bother With Stocks?
Quote:
Originally Posted by unclemick2
The women of the household used to get pi##ed when I took my socks off and let the dog lick the grotty parts between the toes.
heh heh heh - don't say I didn't I didn't warn ya!
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UncleMick: I hope you wear pants.
--Greg
__________________
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No more lawyer stuff, no more political stuff, so no more CYA
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Re: Why Bother With Stocks?
03-25-2006, 07:08 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Re: Why Bother With Stocks?
Quote:
Originally Posted by Martha
UncleMick:* I hope you wear pants.
--Greg
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__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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Re: Why Bother With Stocks?
03-25-2006, 07:49 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
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Re: Why Bother With Stocks?
Yep
Safety first!
heh heh heh heh heh
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Re: Why Bother With Stocks?
03-25-2006, 10:04 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Why Bother With Stocks?
Quote:
Originally Posted by mikew
On moringstar's CEF board, some of the guys have replaced their stocks with CEF income. They can get stuff that will produce somewhere between 7-10% by buying at a discount. If you use a SWR of 4% with inflation rate of 3%, CEFs could be a good idea. Don't know about the risk they are taking on.
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Aha, the risk is indeed the issue. Many of the funds that pay out such hefty sums use leverage to achieve their return. That means the fund borropws money to buy risky assets. Not a low risk strategy.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Why Bother With Stocks?
03-25-2006, 11:01 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Why Bother With Stocks?
Sounds like if you wanted a 7% yield with a little very low risk, buy the vanguard high yield corporates and hold em...hold em between your knees!
Edit: changed to make Brewers contentions correct and to remove the joke so that it appears I was more serious than one might be led to believe so its a real backside whuppin.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Why Bother With Stocks?
03-25-2006, 11:24 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Location: Mesa
Posts: 3,588
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Re: Why Bother With Stocks?
Quote:
Originally Posted by brewer12345
Aha, the risk is indeed the issue.* . .
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Reading this right after unclemick's "safety first" comment about wearing pants made me think you were talking about something else entirely.
Keep your pants on, unclemick. We don't want to hear about that kind of accident.
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Re: Why Bother With Stocks?
03-25-2006, 01:37 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Why Bother With Stocks?
Quote:
Originally Posted by Cute 'n' Fuzzy Bunny
Sounds like if you wanted a 7% yield with a little risk, buy the vanguard high yield corporates and hold em...hold em between your knees!
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Eh, not a low risk strategy, either, especially when default rates go back up. TANSTAAFL, unfortunately. Sorry, guys.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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Re: Why Bother With Stocks?
03-25-2006, 02:52 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Re: Why Bother With Stocks?
Riskier than CEF's?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Why Bother With Stocks?
03-25-2006, 04:24 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: Why Bother With Stocks?
Quote:
Originally Posted by Cute 'n' Fuzzy Bunny
Riskier than CEF's?
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Depends on the CEF strategy. If we are comparing the VG junk fund with a leveraged portfolio of junk or preferred as in many CEFs, yeah, the CEF is riskier. If we are comparing a levered muni fund, it depends on the path of interest rates and changes in the shape of the curve.
My point was that the VG junk find is not what I would consider "low risk".
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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