Early Retirement & Financial Independence Community

Early Retirement & Financial Independence Community (http://www.early-retirement.org/forums/)
-   FIRE and Money (http://www.early-retirement.org/forums/f28/)
-   -   Why Bother With Stocks? (http://www.early-retirement.org/forums/f28/why-bother-with-stocks-20294.html)

ShokWaveRider 03-23-2006 09:59 AM

Why Bother With Stocks?
 
Interesting Article.. perhaps

http://money.cnn.com/2006/03/21/pf/e...pert/index.htm

Maximillion 03-23-2006 10:14 AM

Re: Why Bother With Stocks?
 
Thanks, interesting, I would read this as a sure sign of a merket top.

Cool Dood 03-23-2006 11:05 AM

Re: Why Bother With Stocks?
 
You would read what as a sure sign of a market top?

cute fuzzy bunny 03-23-2006 02:34 PM

Re: Why Bother With Stocks?
 
It might be time for me to tie an onion to my belt again.

Dont make me do it.

Martha 03-23-2006 03:13 PM

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.

justin 03-23-2006 03:58 PM

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.

Why does this bother you so much, Martha? Does looking at his bare feet make you cold?

unclemick 03-23-2006 04:14 PM

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!

yakers 03-23-2006 04:45 PM

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.

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.

MasterBlaster 03-23-2006 04:55 PM

Re: Why Bother With Stocks?
 
Quote:

But somehow I feel better that the fund manager and I see things the same way.
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).


ladelfina 03-24-2006 02:37 AM

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.
I encourage the dog to do that to my DH! It's a win-win situation, far as I'm concerned.

mikew 03-24-2006 09:55 PM

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

Martha 03-25-2006 06:50 AM

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!

UncleMick: I hope you wear pants. ;D

--Greg

Dawg52 03-25-2006 07:08 AM

Re: Why Bother With Stocks?
 
Quote:

Originally Posted by Martha
UncleMick:* I hope you wear pants. ;D

--Greg

:o

unclemick 03-25-2006 07:49 AM

Re: Why Bother With Stocks?
 
Yep

Safety first!

heh heh heh heh heh

brewer12345 03-25-2006 10:04 AM

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.

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.

cute fuzzy bunny 03-25-2006 11:01 AM

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.

sgeeeee 03-25-2006 11:24 AM

Re: Why Bother With Stocks?
 
Quote:

Originally Posted by brewer12345
Aha, the risk is indeed the issue.* . .

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. ;D

brewer12345 03-25-2006 01:37 PM

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!

Eh, not a low risk strategy, either, especially when default rates go back up. TANSTAAFL, unfortunately. Sorry, guys.

cute fuzzy bunny 03-25-2006 02:52 PM

Re: Why Bother With Stocks?
 
Riskier than CEF's?

brewer12345 03-25-2006 04:24 PM

Re: Why Bother With Stocks?
 
Quote:

Originally Posted by Cute 'n' Fuzzy Bunny
Riskier than CEF's?

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 times are GMT -6. The time now is 06:33 PM.

Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.