Search found 147 matches

by Pet Hog
Sat Oct 28, 2017 6:45 pm
Forum: Stocks
Topic: Dominion Resources "D", utility stock.
Replies: 14
Views: 8162

Re: Dominion Resources "D", utility stock.

Considering reinvested dividends, according to Yahoo Finance the adjusted close for D was $7.08 on April 15, 1997 (actual close was $17.25). On December 27, 2013 the adjusted close was $56.13. That's a 7.93-fold gain over 16 years, 8 months, 12 days (16.70 years). Comes to 13.2% annualized. In case ...
by Pet Hog
Sat Oct 21, 2017 5:27 pm
Forum: Other Discussions
Topic: Tax Puzzle
Replies: 41
Views: 10802

Re: Tax Puzzle

My rationale would be: don't lose money! So at least tax neutral. If you began with $100,000 in each investment, now one is $110,000 and the other is $90,000 (ratio of 11:9), then you could sell an equal percentage of each to offset the capital gain. If, say, your loan amount is $20,000, then you co...
by Pet Hog
Wed Oct 18, 2017 2:23 am
Forum: Permanent Portfolio Discussion
Topic: TD Ameritrade changing commission-free ETFs
Replies: 23
Views: 7901

TD Ameritrade changing commission-free ETFs

I received an email this morning heralding the "happy" news that TDA is tripling its number of commission-free ETFs. Unfortunately for us, they are no longer going to include VTI, TLT, or SHY among them. I haven't looked close enough through the list of new free ETFs to find suitable substitutes (st...
by Pet Hog
Mon Jul 17, 2017 4:11 am
Forum: Cash
Topic: Question on Treasury Ladder
Replies: 4
Views: 2651

Re: Question on Treasury Ladder

I would choose a 5-year ladder. For deep cash, you are unlikely to ever have to touch it. So I would aim for a higher yield (longer maturity) and hold each rung to maturity. But not too long that interest rate fluctuations affect the value of the bonds too much. Five years seems a good compromise to...
by Pet Hog
Mon Jul 17, 2017 3:48 am
Forum: Permanent Portfolio Discussion
Topic: Can Portfoliocharts describe optimum rebalancing bands?
Replies: 8
Views: 3673

Re: Can Portfoliocharts describe optimum rebalancing bands?

Interesting stuff. At least for a 25/25/25/25 portfolio, going from 25% to 35% is a 40% increase (or 25% to 15% is a 40% decrease). <pedantry>Going from 25% to 35% requires the asset to grow by about 62%. You have to remember that the whole portfolio grows along with a single asset growing. So 25 (...
by Pet Hog
Fri Jun 30, 2017 1:57 am
Forum: Bonds
Topic: Why do bonds with low yields provide less insurance?
Replies: 11
Views: 4586

Re: Why do bonds with low yields provide less insurance?

That is a good question. You'd look at a price/yield curve and think hey, this is asymptotic, going to infinity as it gets near zero. https://i.imgur.com/KAR8ccO.png But I suppose not. Would be interesting to know, though. If a bond yield drop from 2% to 1% (-50%) causes a bond to rise from 100 to ...
by Pet Hog
Wed May 31, 2017 11:04 am
Forum: Cash
Topic: T-Bill Yield Question
Replies: 12
Views: 5596

Re: T-Bill Yield Question

Not to be nitpicky, but I think it would be more accurate to divide the "one-month" annualized yield by 13, not 12, since the bills have a four-week term.
by Pet Hog
Thu May 11, 2017 7:44 pm
Forum: Permanent Portfolio Discussion
Topic: Stocks, bonds, and gold have all returned 6.3% annualized over the last 10 years!
Replies: 16
Views: 5419

Stocks, bonds, and gold have all returned 6.3% annualized over the last 10 years!

Playing around on peaktotrough.com I discovered something interesting: the 10-year returns for stocks, LTTs, and gold are almost equal, at about 6.3% apiece (CAGR). That's starting on May 11, 2007, with dividends reinvested. Pretty amazing given the huge crash in stocks in 2008 and the huge rise and...
by Pet Hog
Fri Apr 14, 2017 5:53 am
Forum: Permanent Portfolio Discussion
Topic: Rebalancing Hypothesis
Replies: 10
Views: 4053

Re: Rebalancing Hypothesis

Jack, I don't understand what you mean by only rebalancing assets that are beyond their bands. In your stocks 35%/bonds 20% example, would you sell stocks down to 25% and leave the rest as cash? What if the original allocation was 35% stocks, 25% cash, 20% bonds, and 20% gold? You'd rebalance to 25/...
by Pet Hog
Sat Jan 28, 2017 3:45 am
Forum: Permanent Portfolio Discussion
Topic: Alternative PP Models
Replies: 27
Views: 9672

Re: Alternative PP Models

...I downloaded Yahoo Finance adjusted closing price data from January, 1, 2006 to December 31, 2016... I've noticed that the Yahoo "adjusted close prices" have, incorrectly, been equal to the "close prices" for quite a while. Perhaps it's just my browser. You might want to check your spreadsheet t...
by Pet Hog
Tue Aug 16, 2016 9:51 pm
Forum: Stocks
Topic: I think I'll rebalance today
Replies: 37
Views: 15317

Re: I think I'll rebalance today

Managing around the edges has little to no effect on returns but it certainly can benefit psychologically. 1M portfolio, 30% stocks (300K). Sell 5% (15K) to cash and restore asset allocation. A 20% decline on the 5% (3K). Your timely move only resulted in a savings of 3K or .3% of your portfolio. Y...
by Pet Hog
Tue Aug 02, 2016 11:31 am
Forum: Bonds
Topic: Maximum Bond Upside
Replies: 231
Views: 56181

Re: Maximum Bond Upside

As I establish my first portfolio in October, I ask the following: 1) What would the capital gain be on the 10 Year Treasury if we experience zero interest rates? 2) The capital gain on the 30 Year Treasury? Kevin, if you bought new Treasury bonds for $1,000 each on October 1, 2015, these are the y...