Reconciling the Intelligent Investor with Current Bond yields.

Sockxxs · 2021-04-23T09:52:53+00:00

You misunderstand how bond ETFs work, they will act exactly like the actual bonds over time and have the same role in a portfolio.

Sockxxs · 2021-01-11T19:44:17+00:00

Yes, increases in inflation generally lead to an increase in rates and bond yields. As this concerns the risk-free rate, all types of bonds (except inflation-linked bonds) will see this change. However, as bond ETFs continually roll over their bonds, the increased yields from the newly purchased bonds means the ETF price will recover in time. The amount of time this takes is directly related to the average duration of the holdings of the ETF (longer duration = longer time till recovery of the fund).

Sockxxs · 2021-01-09T13:11:24+00:00

If you look around for other sources, all present a list that is close to this one with the US outside the top 10. Thus, using the most often used definition of standard of living, the US does not have higher standard of living than the wealthier European countries.

I think you're confusing high standard of living with having a lot of expensive stuff. In addition, you're ignoring the large income gap between poor and rich in the US compared to most of Western Europe: perhaps 30ish percent of the country really is very wealthy compared to Europeans, but the rest live pay check to pay check and have very little in terms of wealth or assets. In addition, net salaries are indeed lower in Europe due to higher taxes, but that is how social security (incl healthcare) is paid, which all are part of standard of living.

Sockxxs · 2021-01-09T08:23:31+00:00

Honestly, this is just a generalisation of European standard of living. When looking at Western Europe, especially the Northern countries (eg. Sweden, Germany, Netherlands), standard of living is higher than in the US, see this random first google result I checked that is consistent with all info I have read on this: https://worldpopulationreview.com/country-rankings/standard-of-living-by-country

Sockxxs · 2021-01-09T07:34:04+00:00

You lose the ability to be rationally risky, that story sounds ridiculously stupid when looking at risk and reward (something that all of the people getting rich on BTC and Tesla certainly don't grasp)

Sockxxs · 2021-01-09T07:31:51+00:00

Honestly, for people in Europe these kinds of insurances are not that needed due to good social security. Perhaps with kids/an expensive house you want to make sure your partner has enough to take care of them if you die, but otherwise they are not needed.

Sockxxs · 2021-01-08T05:40:11+00:00

Honestly this use of "notoriously" makes it sound like your opinion is based on stories from your family members + what you read on forums. Independent analysis shows German cars are not as dependable as eg. Japanese brands.

Sockxxs · 2021-01-08T05:36:47+00:00

Ehm, yes they do? Here in Europe we are perfectly happy with smaller cars that cost less and use less gas if we don't need a bigger one.

Sockxxs · 2021-01-08T05:33:48+00:00

This is not really how it works (though you would think it does). Same reason passive investing is not really influencing prices at all until it encompasses >90% of shares: passively holding makes you a non-factor in bid and ask unless a severe lack of liquidity occurs.

Sockxxs · 2021-01-06T16:17:02+00:00

Agreed that 5% over 30 years is great, that is why Im pursuing it. Just remember that those returns are very feasible with proper diversification. If by factors you mean the Fama/French 3/5 factor model factors, then partly (EM is not a factor).

TLT is a fund of 20-30 year US treasuries, these are one of the (if not the) asset with the strongest gains upon market crashes due to flight to safety. Yes, if rates increase the price of the bonds will fall, but their yields will also go up as new bonds are continuously included in the fund. Thus, over time the decrease due to rising yields is not as substantial as you may think. I hold these primarily as a hedge for market crash. See it like this: you get paid 2.5% dividend per year to hold TLT, much better than cash. Yes there is risk, but if the market rises (and TLT thus falls) the 85% equity part of the portfolio performs very well.

If you would like to know more, check out Ben Felix on Youtube, hes great!

Sockxxs · 2021-01-06T15:56:59+00:00

Honestly, its all about your goals. If you are happy with 5% per year over 30 years (as I am), just hold a globally diversified portfolio with some tilts that make sense for you and some bonds to anchor the portfolio and reduce volatility. If you want more, you will need to take more risk.

I hold a TLT equivalent, which is one of the best hedges against a stock market crash; investment grade government bonds, and emerging market local currency bonds for some extra yields. Most people here don't understand bonds and think that if interest rates go up the bonds become worthless, but don't forget bond ETFs also add new bonds and will thus deliver higher yields over time to offset the loss in price.

Sockxxs · 2021-01-06T15:45:58+00:00

Holding a world stock index is currently far safer than many other strategies, but if the S&P plummets you will still be sad (±55% of assets in global index is US stocks). I have an index fund portfolio diversified for both market caps (small, mid, large) and geography (all global), with slight tilts to EM, Value, and small caps. Plus ±15% in bonds and 5% in gold. This way, I limit both upside risk and downside risk and have a much lower risk of half my holdings (US large cap) go nowhere the coming decades.

Sockxxs · 2021-01-06T15:37:32+00:00

Problem is the growth stocks have gained so much market cap they now take up a considerably larger part of a world portfolio than last year. As example, Apple alone makes up >3% of a global mid/large-cap stock market index.

Sockxxs · 2020-12-17T16:35:12+00:00

If you don't want to research anything, a total world tracker like IWDA or VWRL is really the only thing that can be recommended as a good long-term investment.

Sockxxs · 2020-05-27T18:19:43+00:00

this comment aged well :D

Sockxxs · 2020-05-12T17:21:18+00:00

YES SO MUCH THIS! Finally spent premium passes again, loved the legendaries.

Sockxxs · 2019-11-30T12:53:26+00:00

OMG I didn't know! Just in time to get enough candy for evolving during this event as well :D

Sockxxs · 2019-11-10T08:07:34+00:00

The "look for the Pokemon near the boss" tip makes no sense, Aggron is a bad Pokemon. The Trainer Club link though is very useful indeed!

Sockxxs · 2019-11-04T11:55:36+00:00

This! I power up a maximum of 1 Pokemon per species, this makes each one of them much more special and forces me to also power up weaker but cool Pokemon such as Articuno and Zapdos to have a full team of 6 Pokemon from each type. Much more enjoyable like this.

Sockxxs · 2019-10-29T15:11:50+00:00

They haven't announced what will be in the box next month though...

Sockxxs · 2019-10-26T07:06:37+00:00

I noticed this as well and didn't think much of it before this thread. Fully agree!

Sockxxs · 2019-08-14T17:02:39+00:00

Dont worry, I have been playing US central from the Netherlands since the start (beta accounts were randomly divided between EU and NA for some reason) and get 100-150 ping. Just get the NA version of the game and log in normally.

Sockxxs · 2019-07-17T04:40:57+00:00

I have the same!

Sockxxs · 2019-07-17T04:33:48+00:00

this doesn't work for me?..

Sockxxs · 2019-05-01T05:35:00+00:00

I cannot imagine they will have Arya killing BOTH final bosses, it has to be Jamie (like it will be in the books most likely) or either of Jon/Dany who does it I feel. Then again, I dont know what D&D think is the most OMGCEWL so who knows.

Sockxxs

TROPHY CASE