Search found 100 matches

by Lang
Fri Jul 05, 2019 12:05 pm
Forum: Variable Portfolio Discussion
Topic: Canada EWC ETF a value play?
Replies: 14
Views: 10166

Re: Canada EWC ETF a value play?

Fair enough. You may also want to check out Australia. While Canada's currency and stock market is well correlated with oil prices, Australia's are well correlated with iron ore prices; that's their primary export, mostly to China, from what I understand. And like Canada, it supposedly has a major r...
by Lang
Fri Jul 05, 2019 6:49 am
Forum: Variable Portfolio Discussion
Topic: Canada EWC ETF a value play?
Replies: 14
Views: 10166

Re: Canada EWC ETF a value play?

I invested in EWC in 2014 and have recently liquidated my investment. Taking dividends into account, I incurred a small loss. I simply believe that it was and still is a bad investment. The biggest reason is that it is a USD-denominated ETF invested in CAD-denominated stocks. Therefore it is directl...
by Lang
Tue Sep 12, 2017 4:59 pm
Forum: Bonds
Topic: Austria issues a 100-year government bond
Replies: 1
Views: 3454

Austria issues a 100-year government bond

Austria has issued today 3.5bn euros worth of a 100 year government bond. It is due to mature in 2117. It pays interest 2.11% annually. It has a duration of 44 years. According to Bloomberg: This new 100 year will be the most price-sensitive bond that exists. In any currency. Will this become the go...
by Lang
Mon Mar 20, 2017 10:59 am
Forum: Bonds
Topic: TLT vs Buy Your own
Replies: 23
Views: 17489

Re: TLT vs Buy Your own

dualstow wrote:Assuming you get your money back, you buy this instead of a Vanguard corp bond fund like VCIT when you have a time-related goal?
Pretty much.
by Lang
Mon Mar 20, 2017 7:06 am
Forum: Bonds
Topic: TLT vs Buy Your own
Replies: 23
Views: 17489

Re: TLT vs Buy Your own

I really like Guggenheim's defined-maturity ETFs for this reason: http://gi.guggenheiminvestments.com/products/etf/product-list They don't have any for Treasuries, though, but I hope they'll have them in the future. Looks interesting. I clicked one, and it says " The Fund does not seek to retu...
by Lang
Mon Mar 20, 2017 7:03 am
Forum: Bonds
Topic: TLT vs Buy Your own
Replies: 23
Views: 17489

Re: TLT vs Buy Your own

If you have a bond fund, and interest rates rise, you immediately see a decrease in the share price. So you "feel" a loss. You may say, "Ah, jeez, I wish I had been holding individual bonds, which I could just hold to maturity!" But if you really did hold these individual bonds ...
by Lang
Mon Mar 20, 2017 6:42 am
Forum: Bonds
Topic: TLT vs Buy Your own
Replies: 23
Views: 17489

Re: TLT vs Buy Your own

I really like Guggenheim's defined-maturity ETFs for this reason:

http://gi.guggenheiminvestments.com/pro ... oduct-list

They don't have any for Treasuries, though, but I hope they'll have them in the future.
by Lang
Thu Feb 02, 2017 5:12 am
Forum: Bonds
Topic: Negative Rates Have Made Danes Richer Than Ever
Replies: 8
Views: 6887

Re: Negative Rates Have Made Danes Richer Than Ever

The title of the article is pretty misleading. You become richer by having more wealth, not by having more bank deposits. The increase in wages is also nothing to shout about. If the figures in the article are nominal, then private sector wages are up by ~6% in the last 5 years, while inflation has ...
by Lang
Sun Jan 29, 2017 11:40 am
Forum: Other Discussions
Topic: Lessons From Switzerland's One-Day, 18 Percent Currency Rise
Replies: 37
Views: 22135

Re: Lessons From Switzerland's One-Day, 18 Percent Currency Rise

At the moment, 0.47%, but it was negative not so long ago.
by Lang
Sat Jan 28, 2017 10:08 am
Forum: Other Discussions
Topic: Lessons From Switzerland's One-Day, 18 Percent Currency Rise
Replies: 37
Views: 22135

Re: Lessons From Switzerland's One-Day, 18 Percent Currency Rise

Swiss PP performance in 2016: - The SPI (stock index) is down 1.4% (up 2.7% in 2015) - The longest Swiss government bond (maturity in 2064) is up 10.9% (up 2.4% in 2015) - A UBS ETF invested in physical gold is up 11.9% (down 11.4% in 2015) - Cash is 0%. (also in 2015) A 4x25 portfolio would yield a...
by Lang
Sat Jan 28, 2017 9:59 am
Forum: Bonds
Topic: 100 year bond!?
Replies: 6
Views: 9322

Re: 100 year bond!?

You should focus on duration rather than maturity. It is a more accurate measure of the bond's volatility. If a 100Y Treasury bond were issued today, its rate would obviously be higher than the 30Y rate, i.e. at least 3%. This implies a duration of at most 32 years. At the moment, as far as I know, ...
by Lang
Fri Jul 22, 2016 6:05 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

A misleading chart. The 10 year rate is forward-looking, and they use the present core inflation to deflate.

It is more appropriate to looks at 10 year TIPS:

https://fred.stlouisfed.org/series/DFII10
by Lang
Tue Jul 05, 2016 4:06 am
Forum: Bonds
Topic: 3 Decades of yields
Replies: 4
Views: 4450

Re: 3 Decades of yields

That chart doesn't take into account differences in the inflation and also something called the "term premium". Take a look at the second chart here:

http://macromarketmusings.blogspot.co.i ... ation.html
by Lang
Mon Jul 04, 2016 11:53 am
Forum: Other Discussions
Topic: Lessons From Switzerland's One-Day, 18 Percent Currency Rise
Replies: 37
Views: 22135

Re: Lessons From Switzerland's One-Day, 18 Percent Currency Rise

- The longest Swiss government bond (maturity in 2064) is up 30.6%. Thanks indeed for the update, always interesting to see how the PP is doing in other parts of the world. Could you tell me what the coupon rate is on the Swiss LTT? (I'm guessing its a bond from 2014?) Yup. The bond's details are: ...
by Lang
Sat Jul 02, 2016 3:06 pm
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

ZROZ is even "heavier" than EDV. Use with caution. ;)
by Lang
Sat Jul 02, 2016 8:24 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

The fall in Treasury yields also impacted the mortgage market. The average interest rate for a 30 year fixed interest mortgage is 3.48%, pretty close to its all-time low in 2013.

https://fred.stlouisfed.org/series/MORTGAGE30US
by Lang
Sat Jul 02, 2016 2:57 am
Forum: Other Discussions
Topic: Lessons From Switzerland's One-Day, 18 Percent Currency Rise
Replies: 37
Views: 22135

Re: Lessons From Switzerland's One-Day, 18 Percent Currency Rise

Swiss PP performance in first half of 2016: - The SPI (stock index) is down 3.9%. - The longest Swiss government bond (maturity in 2064) is up 30.6%. - A UBS ETF invested in physical gold is up 23%. - Cash is 0%. A 4x25 portfolio would yield a 12.4% profit year to date. The annualized YTD profit is ...
by Lang
Fri Jul 01, 2016 9:46 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

Entire stock of Swiss bond yields turns negative : The topsy-turve world of government bond markets has just hit a new milestone. As of today, Switzerland’s entire stock of government debt is now trading at negative yields – with the last to go a bond that does not mature for almost 50 years. Yield...
by Lang
Fri Jul 01, 2016 3:47 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

The 50Y Swiss bond keeps on rising! The yield is now at -0.02%. Whoever bought that bond two years ago is up almost a 100% now!
by Lang
Thu Jun 30, 2016 8:42 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

Actually, Switzerland's 50 year bond has a 2% annual coupon rate - the bond was issued two years ago, before the NIRP craze. So its duration is "just" 36.5 years.

Anyway, the yield on that bond just went down to zero percent. That's it, guys. We're finished. ^-^
by Lang
Thu Jun 30, 2016 4:22 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

40 and 50 year bond yields of Switzerland are now both at 0.04%. Ignoring possible changes in price, this means that the cumulative yield of the 50 year bond is just about 2%. Two percent for 50 years of sitting on a bond.
by Lang
Thu Jun 16, 2016 11:24 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

There are now just two Swiss government bonds left that still have a positive yield. One is a 2058 (41 years) bond that yields 0.02% and the other is a 2064 (almost 50 years) bond that yields 0.06%. Also, German Bunds... https://next-geebee.ft.com/image/v1/images/raw/http%3A%2F%2Fwww.ft.com%2Ffastft...
by Lang
Tue Jun 14, 2016 2:16 pm
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

All Swiss government bonds with maturity of 26 years or lower are now trading at a negative yield. :o
by Lang
Tue Jun 14, 2016 8:55 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 278
Views: 163814

Re: Maximum Bond Upside

I've been following the performance of the Swiss PP here:

http://www.gyroscopicinvesting.com/foru ... 82#p149882
by Lang
Tue Jun 14, 2016 8:46 am
Forum: Other Discussions
Topic: Lessons From Switzerland's One-Day, 18 Percent Currency Rise
Replies: 37
Views: 22135

Re: Lessons From Switzerland’s One-Day, 18 Percent Currency Rise

The year is over, and here's what the Swiss PP did in 2015: - The SPI (stock index) is up 2.68%. - The longest Swiss government bond is up 2.4%. - A UBS ETF invested in physical gold is down 11.39%. - Cash is 0%. A 4x25 portfolio would yield a 1.58% loss in 2015. Here's a quick update on the perfor...