Search found 2336 matches
- Wed Feb 02, 2011 8:21 am
- Forum: Gold
- Topic: It is Gold's gift... It is Gold's curse.
- Replies: 25
- Views: 13418
Re: It is Gold's gift... It is Gold's curse.
I think Medium Tex meant that he could have $1k cash in hand in a few hours, during a crisis. If you sell a mutual fund or and ETF or whatever, it's gonna take 3 days or so to have cash in hand, and that's when everything is running smoothly. Under the circumstances in which you'd be cashing in go...
- Tue Feb 01, 2011 11:06 pm
- Forum: Other Discussions
- Topic: Anyone Else Snowed In?
- Replies: 11
- Views: 6728
Re: Anyone Else Snowed In?
It's even snowing here in El Paso...
- Tue Feb 01, 2011 2:07 pm
- Forum: Other Discussions
- Topic: Inflation or Deflation?
- Replies: 28
- Views: 15590
Re: Inflation or Deflation?
I think that's true (with regard to the fed's ownership of US debt), but I think that discounts a lot of the side monkey business with derivatives, etc, a lot of which I think that a lot of this is still on the books of a lot of the banks (although I don't really know this for a fact). I don't think...
- Tue Feb 01, 2011 12:42 pm
- Forum: Other Discussions
- Topic: Inflation or Deflation?
- Replies: 28
- Views: 15590
Re: Inflation or Deflation?
I think the bottom line is that it's impossible to predict which will we have more of in the futre (inflation or deflation). Deflationary pressure is huge right now b/c of all the bad debt in the form of mortgage backed securities that are still plaguing our financial institutions. So far, we have m...
- Tue Feb 01, 2011 9:31 am
- Forum: Gold
- Topic: Question about IAU, GLD, & GTU
- Replies: 6
- Views: 6349
Re: Question about IAU, GLD, & GTU
I am not 100% certain about this but here's my take: You are right about IAU and GLD being similar to VTI or Vanguard Index funds. You in, theory, should be okay if the parent firm goes broke (unless there's any fraudulent activity, as mentioned by Wonk). GTU is different. It's a close-ended fund. ...
- Mon Jan 31, 2011 6:00 pm
- Forum: Gold
- Topic: Physical Gold
- Replies: 20
- Views: 11285
Physical Gold
How important do you guys think it is to own physical gold versus gold held in something like GTU or Goldmoney.com or the Perth Mint or something?
Just curious.
Adam
Just curious.
Adam
- Sun Jan 30, 2011 9:24 pm
- Forum: Bonds
- Topic: EDV as 100% LT bond portion, held in lower (2/3?) portion of gold/stock/cash?
- Replies: 4
- Views: 4254
Re: EDV as 100% LT bond portion, held in lower (2/3?) portion of gold/stock/cash?
I am very curious to hear what people think about this. I know HB toyed with the idea of using zeros, but decided against it. He did mention that, when push comes to shove, they may be okay. I have to think that you're better off in a 50/50 split of BND and EDV than you are paying taxes on 30 yea...
- Sun Jan 30, 2011 7:55 pm
- Forum: Bonds
- Topic: The 30 Year Yield Has Hit Its 2011 High
- Replies: 82
- Views: 31417
Re: The 30 Year Yield Has Hit Its 2011 High
I think the true definitions of inflation/deflation are simply an increase (or decrease) in the overall supply of money and credit. The thing is, there are so many different types of money and credit these days that it becomes deceptive to think in these simple terms. ie, "We're monetizing d...
- Sun Jan 30, 2011 7:44 pm
- Forum: Gold
- Topic: It is Gold's gift... It is Gold's curse.
- Replies: 25
- Views: 13418
Re: It is Gold's gift... It is Gold's curse.
Agree completely. I would also add that holding a hard asset such as gold in your portfolio does wonders for your psychology as an investor. Helps avoid panic when things get bad.
- Sun Jan 30, 2011 9:23 am
- Forum: Bonds
- Topic: The 30 Year Yield Has Hit Its 2011 High
- Replies: 82
- Views: 31417
Re: The 30 Year Yield Has Hit Its 2011 High
That being the case, what is it that determines whether an economy inflates or deflates in bad times? What makes the US different than Zimbabwe or Argentina?
Adam
Adam
- Sat Jan 29, 2011 8:04 pm
- Forum: Other Discussions
- Topic: Your favorite podcasts?
- Replies: 8
- Views: 4841
Re: Your favorite podcasts?
Also "Frisby's Bulls and Bears". The guy is very smart on either side of most economic debates, and therefore a great interviewer.
- Sat Jan 29, 2011 8:03 pm
- Forum: Bonds
- Topic: The 30 Year Yield Has Hit Its 2011 High
- Replies: 82
- Views: 31417
Re: The 30 Year Yield Has Hit Its 2011 High
MT-- Very interesting perspective, and one that strikes me as true. In inflation, the price of everything, including labor, should go up. I think the argument that someone who was a die hard inflationist may make is that the true definition of inflation is simply an increase in the supply of money ...
- Sat Jan 29, 2011 6:20 pm
- Forum: Bonds
- Topic: The 30 Year Yield Has Hit Its 2011 High
- Replies: 82
- Views: 31417
Re: The 30 Year Yield Has Hit Its 2011 High
It really is a unique time economically. One the one hand, we seem to be printing enough money to guarantee pretty bad inflation. On the other, everyone is scared of debt crisis/municipal default (deflationary depression) Either scenario seems very feasible. Then again, markets tend to surprise ...
- Sat Jan 29, 2011 3:51 pm
- Forum: Bonds
- Topic: Why Sell LT Bonds at 20 years?
- Replies: 9
- Views: 6665
Re: Why Sell LT Bonds at 20 years?
I'd add that buying bonds directly can be educational.
- Sat Jan 29, 2011 1:18 pm
- Forum: Bonds
- Topic: USA credit rating at risk....impact on LT bond allocation
- Replies: 7
- Views: 5907
Re: USA credit rating at risk....impact on LT bond allocation
That's true, so far, but never say never. Who knows what will happen if some of these foreign nations decide they don't like to import our inflation. Things can change very quickly.
Of course, that's the nice thing about the PP...you don't have to try to guess.
Adam
Of course, that's the nice thing about the PP...you don't have to try to guess.
Adam
- Fri Jan 28, 2011 3:20 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
The five year Treasury is at 2%. You could consider that. Easier to hold to maturity (shorter term), and better for tax purposes.
- Fri Jan 28, 2011 2:15 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
Great info, Lone Wolf. I guess it's a good idea to keep some cash in something else that's a tiny bit more liquid if you're going to use I-bonds (to rebalance). It's more the tax benefit I like than anything else. I am a bit skeptical of the government issuing inflation protected anything. It's ...
- Fri Jan 28, 2011 12:52 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
So, why the higher yield for Ibonds? Is it because you have to hold them for at least one year? Is it b/c you lose 3 month interest payments if you sell them in under five years?
- Fri Jan 28, 2011 12:26 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
Very interesting...do they hold up during deflationary periods? I saw in Nov of 09 (I think) there was negative inflation.
- Fri Jan 28, 2011 12:22 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
You can't lose your principal with a T-bill either, so what are the questions you should ask yourself when trying to choose between the two?
- Fri Jan 28, 2011 12:19 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
Right, but what am I comparing the Ibond to? ie, "I can get 2% + interest from the Ibond versus X% for the ? bill/bond/note?"
- Fri Jan 28, 2011 12:15 pm
- Forum: Permanent Portfolio Discussion
- Topic: Where/How to Start
- Replies: 36
- Views: 17938
Re: Where/How to Start
That's why Ibonds may be a good idea. I'm still trying to get a handle on them, though (discussing with Moda on a separate post in the bond section).
- Fri Jan 28, 2011 12:14 pm
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
Moda-- I have read on them, and I think I understand how they work. The thing is, I can't really figure out how the fixed rate is determined. With T-bills, notes, bonds, at least you can compare the rates of various maturities and get an intuitive idea of why they are what they are. With the Ibon...
- Fri Jan 28, 2011 12:00 pm
- Forum: Permanent Portfolio Discussion
- Topic: Where/How to Start
- Replies: 36
- Views: 17938
Re: Where/How to Start
You have roughly 120K, right? So even if you put 39K in your stock fund that's only 32.5% of your portfolio. The others are each at 22.5%. When not just make that the bulk or your stock fund, maybe $30-$35K, keep a little cash in the "not so great fund," and then use a T-bill account (or...
- Fri Jan 28, 2011 11:49 am
- Forum: Cash
- Topic: TIPS held to maturity as "bottom" of cash component?
- Replies: 69
- Views: 50879
Re: TIPS held to maturity as "bottom" of cash component?
[/quote] 1. Total deferral of taxes on interest until redemption (up to 30 years) 2. Zero interest rate risk 3. Zero prinicipal risk 4. Full faith and credit of U.S. government 5. Complete liquidity (redeem at the bank on the corner any time you want) What's not to like? [/quote] Forgive the naive q...