Bond Market Review

I was checking on Schwab's beginning of the year bond market outlook to see how they were doing. They said (my interpretation):
1. TIPs better value than Treasuries (TIP = 2.88%)
2. MBS = limited upside (MBB = 2.21%)
3. Investment Grade Corporates add value (LQD = 3.59%)
4. Muni bonds are still attractive (MUB = 2.50%)
5. Junk has run its course (JNK = 6.16%)
6. Weak dollar driving International bonds (FAX = 6.37%).

For reference purposes AGG (basically total bond market = 2.69%).

In parentheses are corresponding ETF returns through month-end April from Morningstar (exception is FAX, a closed end fund). I sort of check this kind of thing for fun. Short-term results are almost meaningless in the investment markets. It does, however, point out some misses. If you got out of high yield, you are not a happy camper.

Also, looking at other funds, the payout for taking on the risk of investing out at the longer part of the curve has been marginal year-to-date.

I may or may not own these funds. This is for informational purposes only.

DIY Investor Newbie - Constructing the Portfolio

This is another step towards managing our own investments. We go back to the asset allocation post and use that allocation to talk about implementing it with an actual portfolio. Recall that the allocation was arrived at after making specific assumptions. As always this is intended solely for educational purposes.

AAII Baltimore meeting

This month's American Association of Independent Investors/Baltimore Chapter meeting will be on "The Case for Roth Conversion". The speaker will be Matt Carbone, regional VP of Retirement Wealth Strategies.

DIY Investor - Worth Reading

High Yield ETFs vs, High Yield Mutual Funds Bottom line: All portfolios should have some exxposure to high yield in the fixed income portion of their portfolio. High yield etfs vs. mutual funds has all the usual arguments in favor of etfs. There is one unusual element: performance. This has been shown to be an area where active management adds value.

"Secret Sauce" An approach that has significantly outperformed the S&P 500 return over the past 35 years. Can you explain it?

DIY Investor Newbie-Risk Tolerance Quiz

These are all the questions together on the risk tolerance quiz. I tried to make them a bit more readable per a viewer request. I strongly urge you to try it out to see if it gives you some insight into your risk tolerance. Next, we will look at building a portfolio.

Mind Over Money | NOVA | PBS Video

Worth watching to further your understanding of markets.
Mind Over Money | NOVA | PBS Video

DIY Investor Newbie - Risk Tolerance

These are the final questions on the risk tolerance questionnaire. I strongly urge you to try it out to see if it gives you some insight into your risk tolerance. Next, we will look at building a portfolio.