Search found 11 matches

by Justin
Fri Sep 25, 2020 4:21 pm
Forum: Stocks
Topic: RAFI under all market conditions
Replies: 5
Views: 2822

Re: RAFI under all market conditions

Sure, but the formula doesn't change. It's not active management, it's smart beta. You could claim it was based on back testing but then there's an argument that weighting by market cap is also back-tested smart beta, albeit with only one variable. Incidentally "equal weight" also loses out to marke...
by Justin
Fri Sep 25, 2020 1:39 am
Forum: Stocks
Topic: RAFI under all market conditions
Replies: 5
Views: 2822

Re: RAFI under all market conditions

Turns out it's better to not use a RAFI fund! Thanks!!
by Justin
Thu Sep 24, 2020 8:29 pm
Forum: Stocks
Topic: RAFI under all market conditions
Replies: 5
Views: 2822

RAFI under all market conditions

Any long-term holders of a RAFI/fundamental-weighted ETF? How do you find they perform under all four market conditions? I have a significant parcel of a RAFI ETF and I'm wondering whether to roll it over into something based on market cap weighting. The reason being, it looks instinctively to have ...
by Justin
Sun Oct 14, 2018 12:38 am
Forum: Bonds
Topic: Australia Gov't Bond Clause
Replies: 3
Views: 4461

Re: Australia Gov't Bond Clause

Regardless of what the government does, the secondary market will still exist, albeit with more trading friction. If GSBE47 is trading around 200 on the day the government decides to delist, offer yours on aussiestockforums.com for 199 and I guarantee you traders will find a way to purchase them bef...
by Justin
Fri Oct 12, 2018 1:50 am
Forum: Bonds
Topic: Australia Gov't Bond Clause
Replies: 3
Views: 4461

Re: Australia Gov't Bond Clause

Thanks for bringing this to my attention. Definitely concerning. Any ideas as to when the Government might be likely to exercise this option? Is there any precedent? My first thought is "why would the Government care what price it is trading at on the secondary market?" Just spitballing, some possib...
by Justin
Mon Nov 09, 2015 2:02 pm
Forum: Bonds
Topic: Which maturity?
Replies: 11
Views: 6362

Re: Which maturity?

No interest in a bond maturity ladder? I think it was Craig who wrote or said somewhere that if an investor runs a PP for several years, a rough bond ladder is more or less created through rebalancing and adding new money Hi Barrett - if that's the case then you may have inadvertently answered my q...
by Justin
Wed Nov 04, 2015 5:03 pm
Forum: Bonds
Topic: Which maturity?
Replies: 11
Views: 6362

Re: Which maturity?

Hi Barrett/Ochotona - thanks, yes I'm favouring just buying the 2039 bonds and leaving my 2037 bonds alone for another couple of years. Question for you, Justin... It looks to me that yields on 90-day bills there in Australia are about 2%. Is that true? Not sure exactly where you are looking but Cas...
by Justin
Tue Nov 03, 2015 9:54 pm
Forum: Bonds
Topic: Which maturity?
Replies: 11
Views: 6362

Re: Which maturity?

Hi Pet Hog - thanks for the response.

There are fees ($15/trade, plus a spread), but you made me realise that the fee/spread would be eclipsed by the capital appreciation/depreciation, which is where I should be focusing my energy.

Still, less trades is better. I'm leaning towards 2).
by Justin
Tue Nov 03, 2015 5:42 pm
Forum: Bonds
Topic: Which maturity?
Replies: 11
Views: 6362

Re: Which maturity?

Actually I just thought of a third option. So it's: 1) Continue purchasing 2037-maturity bonds until it's time to roll over the entire lot, 2) Purchase bonds with the longest maturity no matter what (in this case 2039-maturity bonds), or 3) Roll over your entire 2037-maturity holding into the bonds ...
by Justin
Tue Nov 03, 2015 5:30 pm
Forum: Bonds
Topic: Which maturity?
Replies: 11
Views: 6362

Which maturity?

For my next bond purchase, should I be purchasing bonds with 22 year maturity, or those with 24 year maturity? I purchase my bonds on the secondary market. Until now I had been stocking up on bonds that mature in 2037 (GSBG37 at http://www.asx.com.au/asx/markets/interestRateSecurityPrices.do?type=GO...
by Justin
Fri Jul 31, 2015 8:12 am
Forum: Permanent Portfolio Discussion
Topic: Backtesting for the Optimum HBPP Allocations
Replies: 101
Views: 252749

Re: Backtesting for the Optimum HBPP Allocations

Long time reader, first time poster. Too many people to thank for informative posts over the years, just hoping I can start to contribute a bit to pay back my debt to you all. Today I was reading here: http://www.ritholtz.com/blog/2015/07/the-golden-dilemma-2/ There is a section towards the back whi...