Search found 329 matches

by jhogue
Fri Sep 20, 2019 1:12 pm
Forum: Cash
Topic: Cracks emerging in money markets?
Replies: 23
Views: 287

Re: Cracks emerging in money markets?

I owned it directly through the fund company, back in the old days and before brokerage accounts became fund supermarkets. Sorry, I was a little fuzzy (or slightly senile?) on the details. The company went defunct in 2004 after paying $80 million in restitution to their investors. The founder and C...
by jhogue
Fri Sep 20, 2019 12:53 pm
Forum: Cash
Topic: Cracks emerging in money markets?
Replies: 23
Views: 287

Re: Cracks emerging in money markets?

I owned it directly through the fund company, back in the old days and before brokerage accounts became fund supermarkets.
by jhogue
Fri Sep 20, 2019 12:21 pm
Forum: Cash
Topic: Cracks emerging in money markets?
Replies: 23
Views: 287

Re: Cracks emerging in money markets?

Thanks for the report on Schwab YieldPlus. The analogy to sausage making is apt. I owned Strong Ultra Short Bond Fund in the 1990s, with the usual dumb desire to chase yield. After I learned that the fund manager went to jail for securities fraud, I decided to get out. In addition to the obvious hea...
by jhogue
Fri Sep 20, 2019 9:58 am
Forum: Cash
Topic: Cracks emerging in money markets?
Replies: 23
Views: 287

Re: Cracks emerging in money markets?

pugchief wrote:
Fri Sep 20, 2019 7:37 am
Fidelity MM (SPRXX) which generally yields 0.25% or so more than their Treasury MM (FZFXX) is now paying 0.1% less.

I wonder if there is more to be concerned about than we think?
Don't buy repos. Don't buy money market funds "juiced" with repos. Don't be sorry. Buy Treasurys.
by jhogue
Fri Sep 20, 2019 9:46 am
Forum: Permanent Portfolio Discussion
Topic: Gold / Stock / Bonds at highs or near highs?
Replies: 10
Views: 280

Re: Gold / Stock / Bonds at highs or near highs?

vnatale, If there is any “flaw” in your thinking, it is that you have not fully considered the role that Cash plays in the HBPP. You are correct: all of the “volatile” PP assets are at/near all time highs. On the other hand, Cash is at/near an all time low. Years of ZIRP have convinced the consensus...
by jhogue
Fri Sep 06, 2019 7:39 pm
Forum: Bonds
Topic: The Bond Dream Room
Replies: 455
Views: 100290

Re: The Bond Dream Room

You are welcome. And fortunately we have pugchief around to keep us on our toes by keeping up to date on our US savings bonds, which, quite literally, have no place to go but up. It sort of reminds me of the children's story "The Little Engine That Could": Starting out is a lot of "I think I can... ...
by jhogue
Fri Sep 06, 2019 4:23 pm
Forum: Bonds
Topic: The Bond Dream Room
Replies: 455
Views: 100290

Re: The Bond Dream Room

I certainly do not consider EE bonds to be “a pointless waste.” A couple of specific, real world examples: 1. The EE bonds we used to pay for our daughter’s college back in 2007-2011 paid 6% p.a. and were both tax free and tax deferred. The accumulated interest was also exempt from all state and loc...
by jhogue
Fri Sep 06, 2019 9:40 am
Forum: Bonds
Topic: The Bond Dream Room
Replies: 455
Views: 100290

Re: The Bond Dream Room

The key question for potential EE bond investors this: Do you have a 20 year plan for your money? If you don’t, then you should never buy EE bonds. If you do have a 20 year plan (or longer), then EE bonds might have a useful role in your portfolio. Pugchief’s worry that rates may rise above 4.00% re...
by jhogue
Wed Aug 28, 2019 9:31 am
Forum: Bonds
Topic: Trump Considering Issuance of 50 & 100-Year Bonds
Replies: 8
Views: 3095

Re: Trump Considering Issuance of 50 & 100-Year Bonds

A report on Bloomberg TV today said that recently-issued 100 year Austrian bonds have doubled in price, while their yield has fallen to +0.62%. I think it shows how far European investors are willing to go to avoid buying German 10 year bunds featuring guaranteed negative interest rates. If interest...
by jhogue
Tue Aug 20, 2019 8:27 am
Forum: Other Discussions
Topic: Greenland
Replies: 7
Views: 1461

Re: Greenland

Article IV of the constitution has governed the acquisition and disposition of US territories since 1789. Few Americans have more than a passing familiarity with it these days, but I would not describe it as “weird.” Most Americans are also unaware that FDR ordered US Marines to occupy Greenland (an...
by jhogue
Mon Aug 19, 2019 11:20 am
Forum: Other Discussions
Topic: Greenland
Replies: 7
Views: 1461

Re: Greenland

Trump could finance the purchase of Greenland with ultra-long 100 year bonds. There is plenty of historical precedence for this. Teddy Roosevelt ordered the sale of 50 year bonds to finance the construction of the Panama Canal. Opened in 1914, the canal has never operated at a loss-- including two w...
by jhogue
Fri Aug 16, 2019 2:03 pm
Forum: Bonds
Topic: Treasury Yield Curve - June 3 2019
Replies: 16
Views: 2409

Re: Treasury Yield Curve - June 3 2019

Are the banks that currently offer 5-year CDs at 3% basically taking a loss on the CDs in order to hopefully attract new customers who will also sign up for lines of credit (from which the bank actually makes its money)? My example was Ally, which doesn’t require a new account to get that rate. But...