notes-investing6

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rising interest rates

[1]

"Rising interest rates punish US power sector" https://www.ft.com/content/edd543d0-1772-11e8-9e9c-25c814761640

https://www.etftrends.com/2016/06/rising-interest-rates-a-review-of-domestic-vs-international-equity-performance/

https://www.cmegroup.com/education/files/prospects-for-ctas-in-a-rising-interest-rate-environment.pdf

https://seekingalpha.com/article/4101203-prepare-new-interest-rate-regime-focus-reliable-income?page=2

https://www.investopedia.com/articles/investing/052814/these-sectors-benefit-rising-interest-rates.asp

https://www.barrons.com/articles/goldman-how-do-stocks-act-when-rates-rise-1438794968

https://www.bloomberg.com/news/articles/2018-04-02/rising-rates-sounding-alarm-bells-for-debt-laden-u-s-consumers

https://www.pimco.com/en-us/riseaboverates/rising-rates-dispelling-the-myth/

good read: https://www.schwab.com/active-trader/insights/content/6-strategies-dealing-rising-interest-rates

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http://www.collaborativefund.com/blog/the-psychology-of-money/

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rent realestate book

https://twocents.lifehacker.com/passive-income-methods-that-aren-t-as-passive-as-you-1730927010#_ga=2.85850393.1692303425.1516314878-1651229265.1516314875

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https://www.pymnts.com/news/payments-innovation/2018/79-percent-of-millennials-gen-x-live-paycheck-to-paycheck-are-late-paying-bills-rising-consumer-debt

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cash

https://news.ycombinator.com/item?id=17682252

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	Fidelity Introduces Zero Expense Ratio Index Funds (businesswire.com)
  https://news.ycombinator.com/item?id=17680040

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techcrunch.com/2018/09/12/spearhead-is-transforming-founders-into-angel-investors/

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www.cnbc.com/amp/2018/09/12/why-money-market-funds-wont-ever-be-the-same.html

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random misc interesting

www.wsj.com/amp/articles/secs-stock-trading-experiment-cost-investors-over-300-million-study-finds-1536206461

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matchagaucho 3 hours ago [-]

Classic long-tail pattern.

The growth of superstars makes me optimistic enough to look at ETF funds like GAMR. The industry overall seems undervalued.

http://www.longtail.com/about.html

reply

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https://twocents.lifehacker.com/how-to-get-the-first-fee-free-index-funds-1828052370

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https://www.cbsnews.com/amp/news/as-interest-rates-rise-its-time-to-switch-banks-to-make-more-money-from-your-savings-accounts/?amp_js_v=0.1#amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.cbsnews.com%2Fnews%2Fas-interest-rates-rise-its-time-to-switch-banks-to-make-more-money-from-your-savings-accounts%2F

https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2018/10/11/the-best-returns-on-your-savings-can-be-found-at-online-banks.html?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.cnbc.com%2F2018%2F10%2F11%2Fthe-best-returns-on-your-savings-can-be-found-at-online-banks.html

https://www-nbcnews-com.cdn.ampproject.org/v/s/www.nbcnews.com/news/amp/ncna919571?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.nbcnews.com%2Fbusiness%2Fconsumer%2Fhow-score-top-rate-savings-account-n919571 ---

https://www.cnbc.com/2018/10/10/not-just-student-loans-millennials-also-load-up-on-this-kind-of-debt.html?recirc=taboolainternal

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https://seekingalpha.com/article/4211702-dump-spy-buy-etf-instead

https://www.thebalance.com/boring-safe-savings-account-2388905

https://www.foxbusiness.com/personal-finance/goldman-sachs-sallie-savings-accounts-highest-interest-rate

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"Historically the 10-year Treasury tended to track nominal GDP just as the overnight fed funds rate tends to track real GDP." Jack Ablin

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ETFs are more tax-efficient than mutual funds because they do most of their trading by a method that doesn't realize capital gains:

"Index funds in general are more tax-efficient than actively managed funds, since they passively follow an index that changes, modestly, every year. Even so, index mutual funds often need to sell shares to meet redemptions if lots of investors are withdrawing their money, and they’re buying when they receive inflows. ETFs, however, don’t typically buy or sell their holdings—instead, they swap the underlying securities with large trading partners in what’s called an in-kind transaction, which does not incur capital gains and, therefore, shields investors from almost any tax hit.

That structure makes ETFs inherently tax-efficient from a capital-gains perspective (until individual investors sell the shares). And it’s a big advantage over open-end mutual funds.

That structure makes ETFs inherently tax-efficient from a capital-gains perspective (until individual investors sell the shares). And it’s a big advantage over open-end mutual funds.

Again, this is not just about active versus passive: Actively managed ETFs are far more tax-efficient than virtually identical mutual fund portfolios. Consider what transpired at Davis Selected Advisers, a firm that sells both actively managed mutual funds and active ETFs. Davis Select U.S. Equity ETF (ticker: DUSA) and Davis New York Venture fund (NYVTX) both try to beat the S&P 500 index by homing in on high-quality large-cap stocks. The portfolios aren’t identical; the ETF holds more financial and industrial stocks, but there’s plenty of overlap in companies such as Amazon.com (AMZN), Alphabet (GOOGL), and Wells Fargo (WFC).

The ETF performed better in 2018, declining 11.6% versus 13% for the mutual fund, partly due to its slightly lower expense ratio. The bigger difference was in their capital-gain distributions. Venture fund shelled out a total of $5.73 per share in capital gains in June and December (almost all long-term), amounting to an average 20% of its late-December NAV. By contrast, the ETF only distributed 2% of its year-end NAV—largely shielding investors from any gains generated by internal trading. Davis declined several email and phone requests to comment.

" -- [2]

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" jackcosgrove 18 hours ago [-]

I have been an on again off again student of economics since college. The most important things to know, in my opinion, are:

1) The historical inflation rate is 2-3% per year in the US.

2) In most times and places in the US real estate appreciates slightly more than the rate of inflation at 3-4% nominally. So real estate grows much more slowly than most expect. A primary residence should be seen as the cost of shelter, not an investment, because...

3) US stocks have appreciated at an inflation-adjusted rate of 6-7% per year (8-10% nominal) even accounting for booms and busts. Speaking of...

4) No one can reliably predict the business cycle let alone individual stock performance absent inside information. Stock picking is a losing game.

5) The best way to invest in stocks for the vast majority of people is to buy the market in an index fund and minimize fees.

So to distill this down to three life lessons:

1) Don't plan on renting your whole life because inflation will catch up with you.

2) Buy the most inexpensive house you can tolerate.

3) Put everything else in index funds every paycheck, and only check your balance every now and then. Let time be on your side.

reply " [3]

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https://thepointsguy.com/news/faqs-chase-sapphire-banking/

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axos bank

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https://finance-yahoo-com.cdn.ampproject.org/v/s/finance.yahoo.com/amphtml/news/3-ways-destroy-retirement-without-124700062.html?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Ffinance.yahoo.com%2Fnews%2F3-ways-destroy-retirement-without-124700062.html

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https://www-marketwatch-com.cdn.ampproject.org/v/s/www.marketwatch.com/amp/story/guid/C7083A64-1E65-11E9-8254-8C3CA676B864?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fhow-low-will-the-sp-500-go-buffett-and-shiller-know-2019-01-23

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https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2018-12-28/bond-with-world-s-highest-interest-rate-has-a-big-fan-in-pimco?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-12-28%2Fbond-with-world-s-highest-interest-rate-has-a-big-fan-in-pimco

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https://www.whitecoatinvestor.com/expense-ratios/ Don’t Obsess About Expense Ratios

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cash interest

https://www-doctorofcredit-com.cdn.ampproject.org/v/s/www.doctorofcredit.com/whats-the-best-simple-high-interest-checking-account/amp/?amp_js_v=0.1#amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.doctorofcredit.com%2Fwhats-the-best-simple-high-interest-checking-account%2F

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cash

[4]

money market (can be FDIC-insured), CDs, savings, checking

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https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2018/07/13/in-etfs-the-bigger-the-stock-the-more-money-goes-into-it-and-that-co.html?amp_js_v=0.1#amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.cnbc.com%2F2018%2F07%2F13%2Fin-etfs-the-bigger-the-stock-the-more-money-goes-into-it-and-that-co.html

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https://www-wsj-com.cdn.ampproject.org/v/s/www.wsj.com/amp/articles/as-interest-rates-rise-real-estate-stocks-lose-luster-1529323201?amp_js_v=0.1#amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fas-interest-rates-rise-real-estate-stocks-lose-luster-1529323201

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cash

https://amp-usatoday-com.cdn.ampproject.org/v/s/amp.usatoday.com/amp/663924002?amp_js_v=0.1#amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.usatoday.com%2Fstory%2Fmoney%2F2018%2F06%2F05%2Fhow-find-best-rates-cds-cash%2F663924002%2F

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[5]

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[6]

"To make money shorting, look for an edge, be patient, and don't be deterred by long investors and management.

To avoid getting your face ripped off, avoid valuation shorts, accelerating growth, and companies with insanely loyal customers.

Also avoid stocks owned by irrational investors and/or in industries with big, dumb acquirers, and never use options. "

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[7]

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articles that just say the basics: index funds, 401k, rebalance, etc

https://twocents.lifehacker.com/the-valuable-money-advice-my-dad-gave-me-1821957050#ampshare=https://twocents.lifehacker.com/the-valuable-money-advice-my-dad-gave-me-1821957050 http://www.mrmoneymustache.com/2014/11/04/why-i-put-my-last-100000-into-betterment/ https://twocents.lifehacker.com/use-the-ladder-method-to-make-investing-simpler-1625804066#_ga=1.71495894.435996537.1430322029 https://twocents.lifehacker.com/how-to-pick-investments-for-your-retirement-account-1607484143 https://twocents.lifehacker.com/avoid-these-simple-but-common-investing-mistakes-1684826589#_ga=1.38990694.435996537.1430322029 https://lifehacker.com/stick-to-a-lazy-low-risk-investing-strategy-to-avoid-l-1669221429 https://eyesonthedollar.com/lazy-investing-strategy/ https://lifehacker.com/the-first-number-you-should-look-for-when-choosing-a-mu-511049734 https://lifehacker.com/should-i-let-a-robo-advisor-manage-my-investments-or-do-1701366242

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https://www.marketwatch.com/story/we-asked-4-robo-advisers-4-human-advisers-for-portfolios-for-the-same-investor-2015-04-21

https://twocents.lifehacker.com/how-to-build-an-easy-beginner-set-and-forget-investm-1686878594#_ga=1.91844442.1125888042.1416611403

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https://www.bloomberg.com/news/articles/2017-12-26/bond-investors-next-big-trade-is-betting-on-u-s-homeowners

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savings account

https://www.marcus.com/us/en


https://www-marketwatch-com.cdn.ampproject.org/v/s/www.marketwatch.com/amp/story/guid/FFCAE786-AEF5-11E9-985A-302AD497084C?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fheres-what-happens-to-us-and-emerging-markets-stocks-and-the-dollar-if-the-fed-cuts-interest-rates-this-week-2019-07-28

 Opinion: Here’s what happens to U.S. and emerging-markets stocks, and the dollar if the Fed cuts interest rates this week

A Fed rate cut probably wouldn’t weaken the dollar because of massive quantitative easing all over the world

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https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2019/07/17/foreign-purchases-of-american-homes-plunge-36percent-as-chinese-buyers-flee.html?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.cnbc.com%2F2019%2F07%2F17%2Fforeign-purchases-of-american-homes-plunge-36percent-as-chinese-buyers-flee.html

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https://www.quora.com/Why-do-quantitative-hedge-funds-seem-to-use-high-levels-of-leverage https://www.quora.com/How-much-leverage-does-a-typical-hedge-fund-use-and-how-does-it-vary-by-strategy https://www.quora.com/From-where-and-whom-do-hedge-funds-get-financial-leverage

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"Warren Buffet's Sharpe ratio is just a smidgen better than the S&P" but his CAPM alpha and information ratio are both very high:

https://web.archive.org/web/20151211094037/www.iinews.com/site/pdfs/JOI_The_Greatest_Return_Stories_WHReaves.pdf

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FRDM

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https://www-cnbc-com.cdn.ampproject.org/v/s/www.cnbc.com/amp/2019/08/06/stanford-analyzed-292-retirement-strategies-to-determine-the-best-one.html?amp_js_v=0.1#referrer=https%3A%2F%2Fwww.google.com&amp_tf=From%20%251%24s&ampshare=https%3A%2F%2Fwww.cnbc.com%2F2019%2F08%2F06%2Fstanford-analyzed-292-retirement-strategies-to-determine-the-best-one.html

summary: take money out of retirement account as slowly as possible

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https://www.businessinsider.com/how-much-money-need-to-retire-early-at-35-2019-8

" To retire early at 35 and live on investment income of $100,000 a year, you need to have at least $5.22 million invested on the day you leave work.

 If you reduce your annual spending target to $65,000, you'll need a starting balance of about $3.25 million in a taxable investment account.
 To ensure the account's growth, Brian Fry, a certified financial planner at Safe Landing Financial, recommends an "aggressive" asset allocation of 80% stocks and 20% bonds.
 "

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https://www.businessinsider.com/high-yield-savings-accounts-live-up-to-hype-2019-8

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https://www.goodfinancialcents.com/how-rollover-403b-into-traditional-ira-tax-sheltered-annuity/

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https://www.goodfinancialcents.com/how-rollover-403b-into-traditional-ira-tax-sheltered-annuity/

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https://money.cnn.com/retirement/guide/401k_401kplans.moneymag/

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