I agree with him on that (substituting RRBs for TIPS), and have been investing that way for several years.stay short, and to keep TIPS...fixed income investing at this point is a version of Pascal's wager, i.e. you will be hurt but not badly if rates and inflation stay low but a rise in inflation will devastate your portfolio if you bet the other way.
Norbert Schlenker wrote:Maybe twenty times in two days.
Bylo Selhi wrote:Boglehead VictoriaF has completed her report and notes on BH9. Here's the full PDF [Warning: 46 pages!] There's lots of interesting stuff therein.
Jack Bogle is still feisty and outspoken. He's slowed down to be sure, but only to a mere 105% of full capacity. His comments on the mutual fund industry, including his rapprochement with the new Vanguard management (“Recently, I have been very comfortable at Vanguard. The new President is succeeding in restoring old Vanguard values and human relationships. I want you to know very clearly that my relationship with Vanguard is very good..."), are particularly enlightening. Jack's latest (he told me, "but hopefully not my last") book just came out:- Don't Count on It! - Reflections on Investment Illusions, Capitalism, Mutual Funds, Indexing, Entrepreneurship, Idealism, and Heroes.
If we live in one of the richest countries in the world, why do so many of us feel left behind?
William Bernstein examines such paradoxical questions of wealth in one of his book latest books, The Birth of Plenty. Since the 1820s, wealth in the developed world has been steadily rising, raising life-expectancy and happiness. Indeed, Mr. Bernstein argues that we’re now the richest generation in history. If that’s the case, however, why is personal debt soaring and why do few feel they have the means to meet their needs? Though we live like the kings of the past we feel like the paupers of the future.
Mr. Bernstein takes you questions in a live discussion now.
Q: And what exactly is that Chernobyl you’re describing?
Bernstein: A very highly linked, leveraged, complex financial system that can very rapidly spin out of control. One failure mode, for example, occurred in 2008 and 2009 when a large number of hedge funds and investment banks underwent forced deleveraging And that’s just one possible failure mode of many.
The problem is nothing’s been fixed. We had banks that were too big to fail, we now have fewer of them and they’re bigger. We have an inherently unstable financial system. And it’s unstable because it’s completely unregulated. To me that’s the most discouraging thing. Almost none of these banks would be here today if it weren’t for the federal government, yet in the past two years, they’ve recaptured the regulatory apparatus.
Q: Anything else worry you?
Bernstein: The greatest threat to our Republic since the Civil War is Medicare. Obviously, we shouldn’t eliminate Medicare. It’s a central part of the social safety net. But medical care in the United States has to be reformed. If it doesn’t, it will bring us down...
Taggart wrote:I read the above earlier this morning at the sister site. What surprised me was (he doesn't use that term of course) his use of market timing.
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